ON DEMAND BUSINESS MODEL 

The short and simple meaning of an on demand business is that, in any business where products and services provide or deliver instantly and accurately at customer’s preferred location easily and conveniently.

The main thing of this model is instant communication between consumers and service providers to connect when customers are in need.

Earlier there were very few tools or equipment for communication but the evolution of internet technology gives birth to such handy tools to Human beings to harness communication gap.

As the Internet of things (IOT) comes to use in more and more, more and more on demand services come on an onboard and available online.

Therefore, An On Demand Business is rapidly growing and breaks the barrier across any services or products to be available online. It goes beyond the taxis and food delivery business to several other services like plumber, electrician, healthcare, handyman, fitness and yoga, domestic help or maid, home cleaning, etc.

FRAMEWORK OR STRUCTURE OF ON DEMAND BUSINESS

An entrepreneur or Startup who comes up with an idea.

Participate :

• Customers

• Service providers

• Investors

• Tech service provider

Activities :

• Provide an Online platform to service provider and customers

• Bring service provider to an online platform

• Acquire Customers

• Manage and complete customer order requests smoothly and accurately.

• Establish relationship with service providers

• Engage with Technology partner to keep update software system

• Sales and Promotion

• Feedback (reviews and ratings)

Cost and expenses :

• Tech infrastructure setup

• Salaries to permanent employee

• Payment to business partner and freelance or associate

• Marketing expenses

Revenue and Income :

• Charges and fee to customers

• Commission from service provider

• Advertisement charges to service provider

Maintain Relationship :

• Quick Customer support

• Provide Guidance and  Assistance to service provider

• Effective communication with technology partner

Virtual Avenue :

• Mobile App - Android and ios or others

• Website

• Social Media handle

The above points give standard and basic understanding of On Demand Business model workflow. One has to keep in mind while making plans for an on demand business to start online. it can be dynamic and ever changing at some point as per what kind of services are offered.