Everything on Demand Business Model
As grow-up-with-internet millennials and generation z have more influence in the society, the way of using technology starts to change- from traditional packages selling with limited customization to everything on demand. Consumer behavior is changing. With everything on demand ideology, consumers expect to access and extract value from companies’ products and services instantly. In 2015, customers in the United States spend $57.6 billion on on-demand products and services and the spending is growing rapidly.
The original ideology behind the on-demand business is the best usage of surplus. When there is a surplus in the market along with the mature mobile technology, the surplus can be transformed into resources. The most well-known example is the existence of Uber. Before Uber, people tend to leave their cars empty when they do not need to use it. Therefore, cars depreciate even when not use it. With the help of Uber, car owners have an alternative way to generate more value with few extra fees. Meanwhile, people who used to wait for scheduled buses and trains can now demand a car whenever they need. The new business model combines with technology reshaped people’s lifestyle.
Other examples include Netflix, Airbnb, and all kinds of paid program. Companies should rethink their business strategies to attract more millennials and generation z users while retaining their traditional customers.