Overcome the Biggest Challenge in the On-demand Sector with this Effective Solution
Whether it is calling for your favourite food or hailing a cab in the remotest location, Uberization has made everything possible. The transforming ability of every industry owing to the on-demand delivery has increased convenience and enhanced the experience of the end users.
41% of these people live in urban areas. 45% of the Americans have offered their services in the on-demand economy
One cannot even imagine how life was before Uber for X. Even now, we have just scrapped the first layer of Uberization. There is a lot that industries can offer, along with convenience, to the end users and the companies, by combining various technologies to offer on-demand solutions.
We are not only looking at an increase in the consumers for on-demand economy, but also providers for this economy.
The investment rounds focused on funding on-demand startups that started in 2014 with $74 Billion reached $10,293 Billion in the last quarter of 2017 and only expected to grow by huge numbers by this year.
The On-demand mobile app economy is prompting over 22.4 million users annually to spend around $57.6 billion to get real-time services
These statistics are proof that on-demand is a heavily consumed and increasingly growing industry segment. However, as you grow, so do your responsibilities, and so is the case with the on-demand segment.
They have to, not only manage the on-demand offering, but also manage the demand with requisite supply. You cannot have shortage of supply or, lower the convenience at any point.
This is the major challenge of those working in the on-demand sector.
Managing demand, forecasting the demand and offering supply with greater efficiency
Let us understand this with a small example so that we know what magnitude of challenge we are actually talking about.
Managing the Demand: The Big Challenge
When you are offering on-demand services, you need to have resources ready to unleash their power and help the users. However, you are never sure of the demand, which leads to overuse or underuse of resources.
For instance, there are certain seasonal demands in the market. Let’s talk about servicemen. The heating or cooling units in your house is generally used during a particular season. The resources for this particular work may not enjoy a demand throughout the year.
However, you need to make sure you have enough resources when the demand comes. This is a seasonal demand but, there are other kinds of demand that appear only once in a year or sometimes, depending on several factors.
Most on-demand businesses are unable to manage this demand:
- They are not prepared for the immediate need arising for the particular demand
- They have not studied the industry or the niche they are working in, which leads to failure of understanding the demand
- Finally, they are unable to forecast the demand, as they don’t have the pattern or algorithm required to enable forecasting.
There is a definitive solution for this challenge.
On-demand economies need to adopt this new-age technology Artificial Intelligence and Machine Learning, combine it with the existing algorithm and technology to offer demand forecasting abilities to the mobile app. As a result, they will be able to serve their users beforehand, thus increasing their convenience. With this, they can even generate a good demand and ensure good conversions for their business.
Demand Forecasting with Artificial Intelligence
- When you are new to the on-demand segment, you are not sure whether the new service you are offering will have a demand. For instance, before the food delivery markets opened up, there was a need to check if the target audience is ready to accept this new system. The first few weeks of operation will help you get the data that is required to understand the demand. Once this data is fed into the AI algorithm, along with several other factors, you will get a pulse of the market, and be able to identify the demand for the particular service. This will help predict if the service will have a huge market or will not be approved by the target audience. In short, it will validate your mobile app and make you understand whether there are profits in store for you or, you need to make changes relevant to the market
- The second scenario is the seasonal demand. When you have a surge in a particular service demand during a particular period, you need to stay prepared for it. The lethal combination of AI and ML will consider the factors from the past including the current geopolitical situation, current technology and convenience needs and competition, and will predict the demand beforehand. You can define your on-demand service according to this prediction made by the technology.
There are several other areas, including validation of a new inclusion and understanding the demand for a new assortment included by you.
You need to use the data that is made available by incorporating AI into your mobile app for the benefit of increasing profits and improving conversion. In the on-demand segment, personalization is the key to getting more people on-board. With AI and ML combination, you will be able to personalize the offering, including discounts and service options to the end users, thus enhancing their experience.
It is time to step up your game with new technologies such as Artificial Intelligence and Machine Learning. The on-demand segment is growing, and the needs are changing for the end users. To stay competitive, it has become impertinent to offer some new and experiential app solutions.
Coruscate has been delivering experiential and convenient on-demand solutions that are in line with the needs of the audience. We cater to the growing demands by pursuing the company’s objectives and offering solutions that are based on an in-depth study of the market and the company’s requirements.
If you have an on-demand app idea, connect with us. Our team will help you overcome the biggest challenges by validating the idea and offering an app solution that is data-driven and customized.
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