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The On-demand generation and Rise of Platform Economy

Author: ResearchFox

Today’s business ecosystem has evolved rapidly, and novel business models are created to improve efficiency and market conditions. In recent years, we have seen billion-dollar firms emerging by leveraging the demand and supply mismatch. With the rise of platforms and aggregator model, the core of the value creation has shifted from creation to connection; from delivering value to facilitating value; from excess to optimal. Strategy shifts from controlling to orchestrating resources; from optimizing internal processes to facilitating external interactions; and from increasing customer value to maximizing the value of the ecosystem.

We have seen Uberisation of businesses as Uber disrupted the taxi services by leveraging the demand-supply mismatch, thereby creating a platform which is more user-centric and responsive, leading to instantaneous gratification and phenomenal customer experience. Similarly, Air BNB disrupted the lodging services by creating a novel platform which boosted the demand for home stays, and creating a revenue stream for people who are willing to rent their homes for holiday seekers. To support the exponential growth of these platforms, along with creating the first-mover benefits across various markets, investors realize the merit in ever-growing valuations, and pump in an eccentric quantum of money to gain equity, cashing-in on the wave of disruption.

Long before the aggregation model came in into existence with a new avatar of mobile-based on-demand services, behemoths like Alibaba, Amazon, and e-bay created the marketplace model to connect demand and supply. The aggregator business model was gained popularity within the transportation and mobility segment to meet the demand for services that can facilitate both on-demand commuting as well as logistics. The on-demand model is disrupting several industries and many of the players are focusing on hyper-personalization and targeted marketing using Machine Learning. Marketplace and aggregator models give market access and help in organizing the market.

Emerging economies like India, where there is a huge unmet need is a favorable market for the on-demand platform models, which creates an ecosystem that benefits all stakeholders. India has the largest millennial population in the world, who expect instant gratification and services on demand. They are early adopters of technology and have greater smartphone penetration. It is estimated that by 2020, 50% of the population will be under 25 years. The on-demand and marketplace business models should leverage the advantage that India yields, which has second highest smartphone penetration, with 530 million.

When you have a huge opportunity, with needs of the market being too enticing to ignore, it is important to play your cards right, to swim against the tides of barriers and uncertainties. Market Acceleration, which makes your product see real traction by moving in to people’s lives, is as important as product acceleration. Market research plays an important role that puts your model to test in the market and among the potential users. There are specialised market research firms who support in making your product successful and playing a vital role in different stages of your venture. ResearchFox is one among the Market Accelerators, which has supported several novel business ventures across various stages of the growth; from product development to market penetration to scale up stage. We have worked with startups to get right insights during concept validation, product-market fit testing, product development and improvisation, user experience test and user acquisition. ResearchFox also supports post-launch activities like product/application adoption, sensitization, and on-boarding support for B2B and B2C on-demand platform businesses.

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