7 Service Industries Dominating the On-Demand Economy


It wasn’t that far ago that we used smartphones for the first time. Clicking pictures, listening to music, using navigation services and the likes were the initial applications that were used prominently. If we talk about on-demand business ideas then a few years later came Uber, an on-demand cab-hailing service that disrupted the conventional practices making efficient use of technology.

No one had imagined that the business model will be so successful that it will raise brows all over the world. With such an evident success, entrepreneurs all over the world switched their focus on the On-Demand market and what future industries can it disrupt.

In the following years, the world saw the rise of many new unicorns and on-demand services that changed the way we availed products or services forever. Today, at the start of 2021 almost every business has realized the importance of having an online presence and the importance of having a business app.

This blog is all about the top 7 on-demand business ideas and how they have grabbed their market with their unique business models. So, read on to learn useful insights on each.

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Top 7 On-Demand Industries with Staggering Potential

How quickly has the world around us adapted to the technological advancements since the incoming of on-demand service? The on-demand businesses invited convenience, profitability, scalability, and budget-checks in every sector it has captured. The same can be examined by analyzing the below-presented statistics of the on-demand economy.

on-demand-app-economy-statistics 2021

Top On-demand Business Ideas for 2022

Having observed the statistics of the on-demand economy let’s now learn the top 7 on-demand industries that are the top players of the game.

ic_Food Delivery

1. Food Delivery App Business

Some of the figures observed through the increasing use of on-demand food delivery apps are:
There is a 67% increased chance of a customer visiting a particular restaurant if they’re ordering online.
The average basket size of restaurants has increased by 25% since online ordering has become prominent.
From a 20 billion USD industry in 2017, online delivery has been predicted to reach 55 billion by 2022.
61% of consumers have agreed to order online if services were offered.
The on-demand food delivery platforms have captured various niches around the globe. Today, one doesn’t feel the necessity to visit a restaurant as they order the same food using a few taps. While the market for restaurant food delivery is hot, you can also cook your meals making use of platforms that provide you with food, ingredients, and recipe at your doorstep. What more does one need?
Grocery delivery platforms have also gained significant recognition over the years. To add to user convenience now there are on-demand appointment scheduling apps that allow one to book a table at their favorite restaurants. Technology and such unique business ideas are successfully capturing these micro-niches.
Apps such as GrubHub, DoorDash, Uber Eats, Zomato, and Swiggy are some of the successful food ordering platforms that have become a part of Millenials’ daily lives.
Read: On-demand Courier App (Glovo Business Model)

2. Travel & Tourism App Business

This sector of the on-demand market is the highest VC-funded business that accounts for almost 70% of the total funding. Uber and Airbnb being the key players of the game, the preceding percentage will decrease drastically if we remove them from the list.
Earlier one had to roam their streets to just avail a cab or had to pay through their teeth for renting a hotel in a city they’re visiting. Uber and Airbnb brought convenience and cost-effectiveness in the way consumers used to call for taxis and rented homes.
Some of the other companies such as Ola and Lyft are offering tough competition to these apps but still have a far way ahead of them. Some of the transportation portals have also started offering inter-city cab hiring services and are generating decent revenue out of the same.

3. Logistics App Business

As per the study done by Forbes, about 61% of the businesses with logistic needs rely on external service providers. Now, that’s a good number for businesses to make their way to the on-demand logistics market.
With such high business offered by eCommerce platforms, there has been an evident increase in the on-demand logistic service providers. Also, companies all over the globe such as Glovo and Lalamove are offering on-demand courier delivery services that allow their users to send almost anything. For example, if you’ve forgotten your keys at home or you want to buy something from the supermarket but don’t feel like doing it by yourself, then the app Glovo will make that happen for you.
These business models have helped platforms like Glovo and Lalamove to become the first Unicorns in countries like Spain and Hong Kong. The app-based services help the users set up door-to-door pickups while allowing them to track their deliveries in real-time.

4. Healthcare

Healthcare has been one of the sectors that have been in dire need of on-demand solutions. As healthcare is an important part of everyone’s life the incoming of on-demand apps have introduced ease to the previously hectic processes.
Earlier, patients had to spend hours on phone to find an appointment at the right time. On the other hand, doctors had to maintain a physical record of the patient’s medical files and patients had to carry them every time they visited the consulting doctor. Different doctors meant more files to maintain.
In recent times health institutes have started creating apps that allow patients to make appointments, share their health records, allow doctors to examine patients through video calls, facilitate on-demand visits, home delivery of medicines and so much more.
Due to so many conveniences offered by the app, the number of companies investing in on-demand health services increased from 4 to 42 in just 4 years (2010-14). That accounts for a CAGR rate of 224%. This sector is still expected to have many more technological advancements through the application of Industry 4.0 techs in the years to come.

5. Education

The online education market is expected to grow at a CAGR rate of 9.23% between the years 2019-25. This would also result in revenue growth from 187 billion USD to 319 billion USD.
The traditional teaching practices were limited to schools, institutes, libraries, and colleges. Then the wave of technology hit the education market and brought in a pool of opportunities and conveniences along with it. Now, no one had to worry about that early morning class or being bound by strict curriculums, everyone was free to learn anytime and anywhere. This is the biggest convenience that these apps offer to their consumers.
There are many different types of education apps that have captured various niches. Education apps comprise language learning apps, apps for kids, apps for competitive exams, apps to learn particular courses, and many more. Still, with a strong market and a promising future, there are many areas of the educational app market that can be explored.

6. Home-Services

The home-service apps have also managed to grab a healthy market and are forecasted to reach 1574 billion USD during 2020-24, globally. The home services comprise house cleaning, interior design, repair services, professional services such as manicure, pedicure, spa, etc., laundry, and much more.
Imagine a time before such apps, one had to look for such service providers all over the market with no guarantee that they’ll find the relevant personnel. As people all over the world have started living a hectic life, the time-poor individuals and families can make the best of such apps that offer cost-effective and timely services using just a few taps. Hence, investors and entrepreneurs are focusing their attention on this area of service.

7. Entertainment

Before a few years, we always heard protests about the privacy concerns that individuals from the media and entertainment industry had. The incoming of on-demand entertainment apps such as Netflix, Hotstar, Amazon Prime, and the likes changed the scenario once and for all.
These apps offer subscription models charging their users on a yearly or monthly basis.
The entertainment industry isn’t just bound to streaming movies. Various other apps have also captured their niche by streaming national and international tv-shows. Other entertainment apps include music streaming platforms such as Spotify, YouTube Music, and the likes.
The entertainment apps provide their users with a seamless experience and offer instant access to content in real-time.

Technource & On-Demand App Development

We have cultivated our expertise in this domain by working on different projects offered by our clients around the globe. Technource has developed several on-demand apps over the years such as ‘Hatch’ and ‘Just Errands’ The case studies of the same can be availed from our website.

We can offer your company all the technical assistance it needs in developing on-demand apps i.e from inception to execution followed by continued technical assistance after project completion. We work with native technologies such as JAVA and Swift and with cross-platform techs namely React Native, Flutter, and Ionic.
To catch a glimpse of our prior work you can visit our website and have a look at our case studies. You can also sign-up for a free consultation and we would be more than happy to give you a call at the earliest.

If you’re a start-up and are worried about your tight budget, don’t be! We also recommend MVP app development practices to promote the safe investment of your money. Our company can be a one-stop all IT solution place for your business with a sound development team, designers, project managers, and many more talented individuals.

You can contact us anytime by signing up for a free consultation on our website. We promise to get back to you at the earliest. The on-demand business sector holds a lot of futuristic potential with many unexplored markets. Let’s exchange ideas and create revolutionary businesses using tech.


Mr. Sanjay Singh Rajpurohit, An early-aged entrepreneur who always leads his team from the front and achieved success. As the founder & CEO of Technource, a top mobile app & Web development company, he made a global presence in a short time by offering custom software development, premium mobile apps, and website development services to global clients. In his free time, he loves writing. He is featured on Hackernoon, Dzone, Enlear Academy, Articlesfactory, and much more websites.

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