There is a tectonic shift occurring in economies all over the world. Though they weren’t the first, Uber has set the stage for the paradigm shift we now know as the on-demand economy.
The on-demand economy is fueled by an ever-growing list of companies providing on-demand services – solutions, usually technology based, that make every day life easier by getting consumers what they want, when they want it.
Push a button; get your product or service … on-demand.
The US market has dominated the headlines with regards to this growing theme, but Asia is now poised to be the next hotbed of on-demand activities. Existing businesses that do deliveries, such as couriers and parcel services, need to adapt or else risk losing out.
The self-evidence of this shift can be seen in the amazing amount of investment that is occurring in on-demand startups all over Asia. Recently, the British startup Deliveroo announced a $100 million funding round, which was going to be used to expand into Asian countries. Deliveroo is not the first, and most certainly not the last, on-demand startup to penetrate Asia.
In fact, hundreds of millions of dollars are being invested in these types of startups, and India seems to be one of the fastest growing markets for them.
As throughout history, changing economic trends have required shifts in strategy. With the advent of the on-demand economy, Asian businesses such as couriers and parcel services risk losing out to these new on-demand startups – which is why they need to change with the times.
Implementing technology to streamline operations is a crucial aspect of being able to provide on-demand delivery. Things like a unified platform for dispatching orders, a mobile application to connect drivers and dispatchers, as well as an amazing customer experience for the end consumer are all things that Uber perfected and which needs to be emulated and adapted for deliveries.
Why on-demand? Why now?
Though Uber wasn’t the first company to offer an on-demand service, it is safe to say that the on-demand economy we all are currently experiencing is due in large part to them. Uber caused the kind of disruption in the taxi industry that the traditional players had nightmares about. And now we are starting to see the “Uberization” of everything.
In the 24/7, always-connected world that we live in, people value time over anything else – even money. Being able to order a product or service and get it that very same day is now becoming a priority to most shoppers.
In the United States, 61 percent of people said they were willing to pay more for same-day delivery, while 43 percent stated they would be willing to pay more for knowing at which time their delivery will arrive. These two statistics point to the trend of people valuing speed of receiving their items, as opposed to the price sensitivities that we have seen in the past.
On-demand in Asia (and beyond)
Moving on-demand in-house: the next trend
Stay updated on the go with our mobile app.
Get latest insights with smoother, more personalized experience through TIA mobile app.
