The on-demand economy is a revolution that’s shifting our buying habits as well as where the jobs are. Using new technologies, consumers get immediate access to goods and services, which is escalating economic activity and creating opportunities.
This new economy is attracting more than 22.4 million consumers annually and $57.6 billion in spending. It’s rapidly expanding all over the world, with consumers voting with their feet, responding to the user experience, convenience, and affordability.
All age groups are embracing on-demand services – 49% are millennials, while 30% are between 35-54 years. Significantly, households with an income of less than $50,000 are part of the wave with participation in the share economy growing.
According to the On-Demand Economy Organisation, mobile spending represents the fastest paradigm shift in consumer spending seen in history with many people using Uber or peer to peer car sharing like Car Next Door as examples.
Other areas of the on-demand economy that are growing include:
- Delivering food and providing a courier service (e.g. Deliveroo, Delivery Boyz, Zoom2U)
- Finding work via online talent marketplaces (e.g. Upwork, OnForce, Work Market, HourlyNerd, Fiverr)
- Renting out space (e.g. Airbnb, Couch Surfing)
- Providing other miscellaneous services (e.g. Air Tasker, Task Rabbit, Gig Walk, Mad Paws, Wonolo).
Essentially, on-demand services span all digitally-based marketplaces, particularly mobile, that offer consumers easy access to products and services. This includes business services, deliveries, education, health and beauty, jobs and tasks, accommodation and travel.
Rapid growth in on-demand
As the share economy continues to grow, jobs and career opportunities will follow. It’s led to a growth in the contingent workforce, which, in turn, is challenging the whole concept of traditional employment.
This shift needs to be discussed by governments and regulators as the forecasted increase in the numbers is huge. The on-demand economy is blurring the lines between freelancer, professional and entrepreneur. Work is becoming more personalised and flexible. The typical 9-5 job structure is fading fast. And, with just shy of half all on-demand users being millennials, work/life balance is a key factor.
By 2020, 7.6 million people are expected to populate the on-demand economy – more than double of the current 3.2 million, according to an Intuit forecast. This opens a new type of entrepreneur to target consumers with their products and services.
Skills in demand, on-demand
Will the on-demand economy turn us all into self-employed workers? It’s a question that’s being examined forensically online – full time jobs vs. ‘gigs.’
On-demand workers are their own boss, so all of the necessary capabilities that business owners need are beneficial. This includes strategic thinking and planning, time management, goal setting, networking, taking knowledge and development into their own hands.
The education and training necessary for success does depend on the role, but a technological mindset is required. Adopting an innovative, problem-solving mindset, that’s open to change is imperative.
Agility is key. Opportunities will come in the form of projects. Teamwork skills will be important, as well as creative and analytical capabilities. Good personal judgement and intuition will help you stand out from the crowd. Upskill to keep ahead of automation changes to deliver a higher output.
There’s no denying the on-demand economy is changing how we work and do business. As it continues to grow, there will be more and more opportunities for the workforce to capitalise on its lucrative aspects.
If you would like to know about the on-demand economy opportunities for you, please contact Jess Perry at firstname.lastname@example.org. We can walk you through the skills and opportunities available to you in the shared economy.