We are living in the times of a thriving ‘on-demand’ economy where customers’ need for immediate gratification and fulfillment drives this sector. From instant order deliveries to transportations of goods within the same day of order – ecommerce has become a significant force that, when coupled with cutting-edge technology, is unbeatable.
Take the likes of Amazon and Alibaba as an example; these two ecommerce giants have capitalized on the on-demand ecosystem, raking and collecting massive revenues completely changing the e-commerce landscape, including that of shipping and warehousing logistics.
What exactly is the on-demand economy?
In layman terms, the on-demand economy is a service or product that enables users to request an object, piece of information, or service in the hopes that it will be fulfilled in the shortest amount of time. It’s an entire system running on human psychology of swift gratification of their desires, needs, and wants.
On-demand economy is clearly not going anywhere. It has just begun to advance and has yet to rise to its peak. Nonetheless, it has already disrupted fields of on-demand delivery, transportation, and supply-chain – with transportation owning the on-demand economy.
Nearly 75% of the funds have been invested into just five on-demand startups, and four of them cater to the travel and transportation niche.
Technology as the backbone of ‘on-demand’ economy
In this technologically advanced world, this ‘instant service’ economy doesn’t function without a working mobile app or web application built by a software development company in Dallas. These apps are supposed to provide a seamless user experience to all customers or clients who can avail of the ‘on-demand’ services from the comfort of their homes using regular devices like smartphones or laptops.
The current prospects of ‘on-demand’ economy are bright and thriving – but, what does its future hold? Let’s see ten exceptionally high statistics sketching a growing on-demand economy in the coming times.
1) 51% of retailers worldwide offer same-day delivery
This percentage rose to a whopping 65% by 2019 and is consistently increasing. This goes to show how eager retail businesses are in catering to buyers’ demand for being provided with their purchased product(s) as soon as possible.
2) 60% consumers belonging to the US would pay extra to have goods delivered on same day
Again, this goes to show the eagerness of the consumers and how they encourage businesses to respond to their requirements of instant gratification swiftly. According to these statistics, 60% of these customers would happily pay more than 10 dollars to have their ordered/purchased furniture delivered on the same day they ordered. Moreover, these orders and purchases are made online, which reiterates ‘technology’ being the backbone of this economy.
Moreover, 49% of shoppers say they are more likely to shop online if they are receiving the option of ‘same-day delivery.’
The same can be said about food delivery. The customers who order their food through a mobile app or web app would happily pay additional delivery charges for their order to be delivered as soon as possible – which generally translates to the same day or with a small gap of an hour.
3) $57.6 billion annual revenue is generated by on-demand economy
Not only this economy is worth $57.6 billion, but it is accumulating nearly 22.4 million consumers every year – while ‘same-day delivery’ accounts for $4.1 billion from the 57 quoted.
4) Millennials make the largest customer-base and 55% of them prefer online stores
Since the majority of the on-demand spenders are millennials, who also happen to prefer online formats compared to physical stores – it is a given that on-demand economy is bound to go bigger, as not only this generation enters into the workforce at la, increasing their spending. Also, this points out the significance of optimized applications with attractive UI/UX design to attract a more extensive customer base in the first place, which later facilitates on-demand economy
5) Ecommerce sales will make up nearly 15% of the total retail spending globally by the year 2020
This 15% of increase will yield 4 trillion dollars of ecommerce sales in the year 2020, which is a massive amount and shows the popularity of ‘online shopping’, ‘same-day delivery’, and ‘free-shipping’ – along with the increase of spending habits within the consumer base that is largely made up of people aged from 18 to 34.
6) 26% of the customers abandon online-carts because of long shipping times
As mentioned, the on-demand economy is driven not just by seamlessly integrated technology but also through same-day or fast delivery options. The factors on which customer loyalty depends have drastically changed with the advancement of e-commerce operations and with the significant progress in technology.
Now, the longer it takes for a store to deliver their customer’s purchased products, the sooner they lose customer loyalty – leaving unvisited user-profiles and abandoned carts.
7) 70% of the US customers are most likely to buy from a site that gives multiple delivery options
The above statistic indicates how gravely a customer’s buying intent depends on delivery options. Taking Amazon as an example, which is the front-runner in the e-commerce arena – this giant has a delivery structure that remains unbeatable by now. For instance, Amazon Prime users are willing to pay extra for faster delivery service.
8) 97% of consumers consider same-day as “fast delivery”, while 95% take next-day shipping as fast
Either way, the consumers take the same day or the following for ‘fast delivery.’ This insight can help businesses bank on their delivery models to ensure maximum user engagement and conversion.
9) 50% of online business force will offer same-day delivery within the next 3-5 years
These businesses have realized the importance of adjusting to customer preferences. In the retail business, Amazon is the trendsetter and has placed the ‘customer-satisfaction’ bar high – which other businesses either try to reach or compete.
10) Same day delivered items’ value in the US is expected to increase 40x in the next 4 years
The value of items ready to be delivered on the same day of the order will be massively increased. This entails the broad impact of fast delivery on not just the businesses that are providing this facility, but also on the value of the items as a whole.
The Verdict:
The statistics are a clear indication of what the future demands from businesses and industries, and the sooner they shift their dynamics, which includes leveraging technology in order to satisfy consumers’ on-demand behavior, the better their chances to emerge among the top runners.
This includes the transportation industries as well, as they are the main force behind the on-demand economy – so it is imperative that they adjust their services according to the rapidly changing consumer expectations.
