It's interesting to us how little media attention the demand side of the on-demand/gig economy gets.
Demand, of course, is the reason on-demand/gig economy startups can raise large sums of money at lofty valuations. It's also why all the talk about the on-demand/gig economy going away is quite silly.
On-demand food delivery is a good example.
While currently a relatively small market, it's attracting companies of all sizes and shapes.
A few examples of recent activity in this space include:
- Facebook is offering food delivery from within its app.
- Google Maps is allowing users to place local delivery orders.
- Groupon is now offering food delivery services.
- Amazon is offering free food delivery to Prime Customers
The chart below, from BI Intelligence's recent report THE ON-DEMAND MEAL DELIVERY REPORT (paid subscription required), shows why food delivery is attracting so much interest.
Simply put, there's a huge potential market for online food delivery.
The demand for food delivery is also clearly illustrated in a recent report from the analyst firm Mintel. They report that:
... half of U.S. adults said they ordered delivery food in the past three months. And 60% of those surveyed had done so to avoid going out.
So when you read in the media that the on-demand/gig economy is in trouble, remember that demand for on-demand/gig economy goods and services is simply too large for this sector of the economy not to grow.
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