From parking your car during rush hour to shipping your packages during the holidays, on-demand services perform tasks that you only thought you were stuck with.<\/span><\/p>\n These apps\u00a0have proliferated and seem to have found\u00a0much success so far, typically catering to young urbanites with more money than time \u2014 or patience \u2014 to spare.<\/span><\/p>\n On-demand services can be considered a subset or a derivative of traditional delivery and sharing services. The success of Uber in creating a market for technology-enabled, on-demand transportation has encouraged entrepreneurs to look to other, often humdrum, daily tasks that tech-savvy users would be happy to offload.<\/span><\/p>\n Successful on-demand services sit in a\u00a0sweet spot where they charge more than the cheapest option, which is often free, but less than the dominant suppliers in the marketplace.<\/span><\/p>\n The relative affordability of on-demand services also puts things that once seemed luxurious within reach, creating an additional delight factor for users. <\/span><\/p>\n For example,\u00a0<\/span>Washio<\/span><\/a>, an on-demand laundry and dry cleaning startup that picks up your dirty clothes and returns them clean and folded, provides a service that most associate with fancy hotel stays.<\/span><\/p>\n On-demand services need reliable, world-class technology to facilitate timely scheduling or ordering. Technology also makes it easy for users to access price information, customer reviews, and communicate with employees before and during the service. \u00a0<\/span><\/p>\n As Washio CEO\u00a0<\/span>Jordan Metzner<\/span><\/a>\u00a0explained in an\u00a0<\/span>interview with Bloomberg Business<\/span><\/a>, “The amount of technology that happens in real time for your clothes to get picked up and delivered back to you in 24 hours is really immense.\u201d<\/span><\/p>\n One company that uses technology in a unique and customer-oriented way is\u00a0<\/span>Wag!<\/span><\/a>, a startup that provides certified dog walkers on demand. <\/span><\/p>\n The Wag! app allows users to track their dog\u2019s walk in real-time (and contact the dog walker if need be). While this feature is not crucial to Wag!\u2019s core offering, it demonstrates that the startup understands how much users care for and miss their pets.<\/span><\/p>\n Needless to say, the most defining characteristic of on-demand services is that they are only there when users need them. Many successful on-demand services thrive because they offer flexibility in markets that traditionally require a commitment from the user.<\/span><\/p>\n For instance, instead of having to interview, hire, and establish a long-term relationship with a provider, users can push a button to get help immediately without any obligation to use the service again. TaskRabbit<\/a> exemplifies this principle, providing shoppers, cleaners, and administrative Taskers who only show up when needed. <\/span><\/p>\n In an\u00a0<\/span>interview with USA Today<\/span><\/a>, TaskRabbit CEO\u00a0<\/span>Leah Busque<\/span><\/a> said that 60% of jobs are posted for the same day due to the rise of mobile and that \u201cit\u2019s a really exciting time to be in this space and to be able to deliver these connections in real time.\u201d<\/span><\/p>\n On-demand services do not offer a groundbreaking or radically different product; instead, most offer a better way to do something that people need to do anyway. <\/span><\/p>\n This approach is smart because it does not require creating a new market. Everyone wants to be more efficient in their daily tasks so they can focus on things that truly matter to them.<\/span><\/p>\n For inspiration<\/span><\/a>, look at the things you do on a day-to-day basis. In what areas can a little bit of technology and organization save a lot of headache?<\/span><\/p>\n On-demand services are successful because they disrupt markets that haven\u2019t seen innovation for years, such as laundry, home cleaning<\/a>, and parking<\/a>. <\/span><\/p>\n Entrepreneurs who are typically drawn to grand ideas may miss opportunities in markets that seem tedious. These markets are often scattered and lack transparency in pricing and standards. Being able to provide even a small improvement can revolutionize the industry. <\/span><\/p>\n Since on-demand services are so reliant on technology, mastering digital marketing will be crucial to gaining new customers. <\/span><\/p>\n Many on-demand services offer generous promotions and discounts when first launching. They can benefit greatly from referral programs that reward existing customers for sharing the service with their friends and new customers \u2013 or employees \u2013 for joining. <\/span><\/p>\n Digital marketing also gives startups the chance to display\u00a0their personalities. <\/span><\/p>\n Lyft<\/a>\u2019s pink mustache became a defining aspect\u00a0of its initial branding and positioned the company as fun, a little weird, and distinctly non-corporate.<\/p>\n Image credit<\/a><\/em><\/p>\n Airbnb<\/a> used digital marketing to achieve a sense of intimacy through short travel videos and local city guides that appeal to travelers and locals alike.<\/span><\/p>\n Image credit<\/a><\/em><\/p>\n Most entrepreneurs dream of landing venture capital<\/a>\u00a0to fund their ideas, but attracting investment<\/a>\u00a0can be especially important for on-demand services in order to build the upfront technology. <\/span><\/p>\n Attracting the attention of a big VC<\/a>\u00a0or a celebrity investor also helps the company to gain a lot of buzz<\/a> before the product is ready to hit the market (although it’s worth noting that early press might not always be a good thing<\/a>).<\/span><\/p>\n When thinking about ideas for a B2C market, it could be helpful to think about what services would translate easily into a B2B environment<\/a>. <\/span><\/p>\nSuccessful On-Demand Services Have These\u00a0Characteristics:<\/span><\/h2>\n
1. The price points for the level of convenience promised are extremely attractive.<\/h3>\n
![\"On-demand](\"http:\/\/d1vqbpto5tbbz0.cloudfront.net\/blog\/wp-content\/uploads\/2015\/09\/15170000\/Screen-Shot-2015-09-11-at-5.05.09-PM.png\")
<\/a><\/p>\n2. Technology is integral to providing transparency and a seamless customer experience.<\/h3>\n
![\"On-demand](\"http:\/\/d1vqbpto5tbbz0.cloudfront.net\/blog\/wp-content\/uploads\/2015\/09\/15170000\/Screen-Shot-2015-09-11-at-5.10.02-PM.png\")
<\/a><\/p>\n3. Flexibility will need to be a cornerstone of your business.<\/h3>\n
![\"On-demand](\"http:\/\/d1vqbpto5tbbz0.cloudfront.net\/blog\/wp-content\/uploads\/2015\/09\/15170000\/image-4.png\")
<\/a><\/p>\nFor inspiration on how to create the next big on-demand service, founders\u00a0should consider these\u00a0questions: \u00a0<\/span><\/h2>\n
What do people do often?<\/h3>\n
What markets have been stagnant for years?<\/h3>\n
Can you build momentum with digital marketing?<\/h3>\n
![\"On-demand](\"http:\/\/d1vqbpto5tbbz0.cloudfront.net\/blog\/wp-content\/uploads\/2015\/09\/15170000\/lyft_car_on_road.png\")
<\/a><\/p>\n![\"On-demand](\"http:\/\/d1vqbpto5tbbz0.cloudfront.net\/blog\/wp-content\/uploads\/2015\/09\/15170000\/Screen-Shot-2015-09-14-at-4.35.08-PM.png\")
<\/a><\/p>\nHow attractive is the idea to investors?<\/h3>\n
Is there an opportunity to build for the enterprise?<\/h3>\n