Why More and More On-Demand Startups Are Emerging in Every Business Sector?

Apart from taxi booking and food ordering, many other existing services are made online. More and more businesses are on the verge of going online. These services are now called as on-demand services. When a service is made online, a user can access it anytime, anywhere and hence the name on-demand. Aspiring entrepreneurs are looking to launch on-demand startups because of the scope it has. In fact, the on-demand has become a business model because of its success across all spectrums. 

Increased smartphone usage and the internet may be a reason for this shift in accessing a service but why this particular model became popular? Let me say this in detail and now I start with explaining the basic reason for this shift.

Why the Need for On-Demand Apps Rising More in Every Business Sector?

Disruption in business service

The technological shift I said earlier that happened for many services is technically called disruption and on-demand is the disruptor. Disruption creates a new market in place of an existing market. 

The on-demand model changes the way something works although the end result is the same. Many conventional businesses suffered because of the on-demand and those that didn’t adapt to this change became irrelevant. 

These disruptions are inevitable and cannot be avoided. Innovation is the basis for many disruptions. If a business has not innovated for a very long time then, it can be easily disrupted. This is what happened in many business services. All the disruptions happen only to change the process and not the end result.

Be it food ordering or taxi booking or travel booking or rental booking or any other, the state of these services was bad until it is made online. For example, if you need to get a taxi some 20 years back in the US you have to wave in the middle of crowded streets. The fare may be high and quality of vehicle will not be as expected. But now things have changed and with a tap, you get a taxi near you. The same applies to other businesses.

What qualifies as a disruption?

Innovation in the form of technology must do the following to a business to disrupt it.

  1. Ease the access to users: The ease to access a service can be improved by reducing the time taken to get it anytime and anywhere. In food delivery, you just need to take the mobile and order food from favorite restaurants and get it within minutes. All these don’t take much time. 
  2. Reducing operation cost: Most of the business cost is on fixed costs like inventory, rent, salary, maintenance, etc. Doing away with these can help the business. Taxi booking startups don’t own any of the cabs they operate and so they incur zero inventory and maintenance cost.
  3. Better usage of data and information: Businesses work effectively and efficiently if it can get more and more data regarding the customers and market. Data can be used to streamline business operation and narrow down the target users.

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How on-demand came into the scene?

In simple words, the on-demand app model provided the necessary innovation into a service. It used a technology that can be seen everywhere – smartphones. Also, this model creates a win-win situation for all the people associated with it. 

Access, delivery time, cost, visibility, and reliability for many business services are so bad and people were frustrated about it. On-demand model eliminated these. 

The kind of change brought by on-demand is well received by people since it reduces their time and money to get a service. It also makes more data available to users so that people can make good decisions before choosing a service. For example, in online taxi booking a user can know the previous reviews of the cab driver plus the plate no.

Innovation has always been a stronghold for entrepreneurs. Since the on-demand startup needs constant change, entrepreneurs have been able to handle it easily. This is why we can see this model spreading to more and more services.

How On-Demand Apps Create a huge impact among the startups

There are many startups but among them, on-demand stands different. Below are the reasons why it made a great impact while others didn’t:-

  1. These startups offered something radically new to the market. They created a solution that was not there before and one that makes the user hasslefree.
  2. Most businesses relied on restructuring the business hierarchy and cost-cutting measures for improvement. But on-demand startups are way more creative, distinct and solve users problem effectively.
  3. Data and technology are used to the fullest by these startups which gives them an edge over others.
  4. Intellectual ability is needed more than a capital investment to launch on-demand startup so for bootstrappers it is a boon.

How SpotnRides plays a prominent role in your on demand startup?

Fascinated by the way how on-demand startups work and how it has become an inevitable force? With the same fascination think about entering this market by launching a creative app based startup business. You don’t have to worry about the app solution for your startup even if you have no technical knowledge.

At SpotnRides, we have readymade app solution for all types of on-demand services. You need not worry about the type of business since we have a solution for all. Any minor and major modifications, design changes, and addons are done by our teams. 

Even after purchasing the solution from us you can stay relaxed because we give complete post sales assistance like free updates, free issue fixing, for some time.

Drop a message to [email protected] regarding any doubts and queries. We are keen to partner with you. 

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About the author


I am working as a Senior product developer and have developed and delivered Web and Mobile products for numerous clients.

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