One of the fastest-growing, and most fascinating, type of tech business in the last five years is the on-demand marketplace. Services like Uber (taxis) and Instacart (groceries) take something that was inefficient in the past and make it frictionless. And, all the while, creating jobs and growing the economy.
Here are a few trends contributing to the rise of on-demand marketplaces:
- Smart phones – With a super computer in the pocket, the process is seamless to both pinpoint a location based on GPS and provide a rich experience for the end user
- Health insurance – Now that individuals can more readily obtain health insurance, the desire for many people to have employer-sponsored health insurance has declined (workers for on-demand marketplaces are independent contractors)
- Cloud computing – Getting to market quickly, and scaling processing power up and down, is 100x easier than 10 years ago, allowing more marketplace flexibility
- Economy – While unemployment has come down substantially over the past five years, in reality the number of people that have left the workforce, but would traditionally be working, is much higher than normal, combined with a number of part-time workers that want full-time work, make for a larger number of people that are a good fit for these marketplaces
Over the next five years, look for many more on-demand marketplaces to emerge, and many more to become mainstream. On-demand marketplaces are a huge growth opportunity.
What else? What are some more thoughts on the rise of the on-demand marketplace?