How new on-demand startups should begin differentiating themselves?
There is a surge in the on-demand economy. The modern businesses, owing to the umpteen benefits that users get, have started moving forward with on-demand segment. They are planning to redefine every industry and conver them into demand oriented business. as a result, users can get groceries to fashion on-demand, whenever they want and wherever they want.
The delivery and the inventory management should be efficient so that you don’t fail to manage the demand and supply for the businesses. Here, we will take you through what happens when you start an on-demand, things you may need to think through and how best to differentiate yourself so that you can survive the tough competition in this segment.
Why on-demand app startup idea is beneficial?
As we have already discussed, there is a huge demand for the on-demand business. there is an obvious reason for the same- convenience. Here, we will discuss all the top reasons why on-demand is becoming successful and a thriving business idea.
- The convenience that the on-demand segment offers is unmatched. You will not only be able to sit in one place and book the ride, but also make sure that the ride arrives at your place. This convenience has been extended to other industries as well including the groceries delivery services and others.
- The service is available wherever you are. For instance, you are at your office, and want to call in for some lunch, you can do so with the on-demand food delivery services. They are not location specific but, you can call them at your location. this makes it easy to access and always available
- The on-demand model is not just cost efficient to the users, but also to the businesses who are a part of this service. The users can avail a cab service in less price than the regular public transport services. The model that make up the business are also cost effective as there is less management required
- The payment systems are quite a charm. The app needs to integrate all the payment facilities, and it will become easier for the users to complete the payment. This also is suitable for the business, as they will get more conversions as a result of the different payment models
How to Differentiate your on demand app Startup?
Most businesses are clones, which is also one of the major reasons why the on-demand startups fail. Even if you consider opening your business in the same segment and niche, it is important to create a differentiation for the business users, so that they would realize what they want.
The differentiation strategy begins with the thought- what my users want? You should also consider what you aim to achieve through the mobile app for successful app model.
Here are some points that would help you differentiate your on demand startup for the end users.
#1 Create Value
A lot of on-demand startups offer the same structure and construct. So, why should they join your business, and why should you gain more conversions?
When you start out, you tend to offer discounts and packages that make the users want to try your products and services. However, once you have acquired the basic user base, you tend to move away from the freebies that you offer, and go back to normal packages.
The people who were part of the user base start moving towards another app that offers the same freebie. As a result, you are unable to retain the users, and create the minimum base for your app.
On the other hand, if you tend to create a valuable product or package for the users, they will come to you because of the product or package. In case of on-demand service, if the service providers are good or they offer more value to the users, then they will prefer coming to you again and again.
Instead of differentiating the product or service, you can differentiate using the value you offer, which will enable better conversions.
#2 Go Smart with your Solution
For on-demand, managing the inventory i.e. the resources handling the demand is important. You need to make sure that enough resources are available. However, for this purpose businesses need to be aware of the demand for the particular service or product. For instance, if there is a demand for cabs in a particular area during a particular season, then the business should be aware of this demand. Accordingly, they can manage the fleet and ensure there is enough supply. For this purpose, on-demand businesses can differentiate themselves by going slightly smart. Using Artificial Intelligence in their solutions can help them gain that edge. They can instantly predict the demand for the particular season using the past and present factors, and judge the demand. This will help them adjust their model accordingly and ensure seamless user experience.
#3 New Niche
The on-demand startups can identify a new niche where they can offer a solution to a problem or identify a gap in the existing niche and try and resolve the problem. Either ways, they will need to make sure they are offering a solution to the problem.
This will help them differentiate in the market. For instance, there is a problem in the market where people are still finding it difficult to book a doctor’s appointment and ensure there is not waiting line. They book the appointment and sit in the queue. Your app could probably ensure that the doctors take the appointments into note, are reminded, and offer time interval in a way that they can take the patients at their time.
This is probably resolving a gap in the same niche but, a way to differentiate what you have to offer. There are similar problems in every niche. You could also explore the untapped niches in education, fashion and media industries, to name a few. The idea is to offer something new and novel to the users.
Once you have identified the point of difference, you will need to identify the business model for your on-demand startup. This will help you refine your offering accordingly.
Get free on demand app development estimate of business advice from our expert.
Starting an on-demand business depends on the idea and how good it is. You will need a technology partner who will tell you about its feasibility and also assure you a good solution.
Coruscate offers in-depth industry expertise and experience that helps resolve all your technology issues, and helps grant a capable and able solution. We enable businesses to convert their ideas into an able app using a thorough and defined process combined with agile methodology.
If you have an on-demand relate query or an app idea, connect with our team or fill out the form stating the details. Our team will answer your queries or get in touch with you within 24 hours.