What is an On-Demand Business Model and why is it a must for Start-Ups in 2019?

We have entered into an era where consumers are continuously connected with digital platforms and expect to get instant access to the services and products they need. People don’t even need to leave their homes to do shopping anymore.
On Demand Business Model

An on Demand Business Model, is a mix of a digital platform with offline services, aimed to provide instant services or products to customers. It’s a global phenomenon, which was impossible to execute fifteen years ago but has spread like wildfire in the past decade due to our advances in technology.


Despite the fact that the On Demand Business Model is ideally suited to meet the needs of Logistics, Transportation, and Food industries, it can be fitted to more conventional businesses too. Is there scope within your existing business model to appeal to the digital demands of your customers? Or are you a start up with a great idea but not sure how to visualise your concept?

Here is the process for developing an On Demand Business Model for your business:


  • Analyse the gaps in your marketplace, identify consumers’ pains with the purchasing process, and evaluate the digitisation requirements that will address those issues.


  • Understanding your customer is vital. Conduct polls, collect feedback, evaluate the ways your business services/products can be improved and communicated more effectively. Always keep the needs and desires of your customers in mind.


  • Determine what resources you will require to tie in your offline offering with your online platform to deliver an instant on-demand service. Pay attention to both external and internal factors. Externally – partnerships with other companies and stakeholders might be required to achieve that. Internally – prepare your staff for moving to the On Demand Business Model. If you own a flower shop, what do you need to do in order to integrate an on demand business model into your day-to-day business operations? What resources do you have for the development of the mobile app? Do you have the capabilities to establish a delivery system? How would that impact your staff? Is it worth it? Are you innovating or adapting? These are all the questions that need to be answered before you make your first move.


  • It is a relatively new concept and not all industries have caught on. In case you are being an innovator in your market, make sure to preserve your first-mover advantage as much as you can. If you are operating in an industry where the On Demand Business Model is used broadly, analyse your competitors and research the pain points their model has. Innovate and improve.