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On Demand Economy In Asian Countries: Growth And The Future

On demand economy is built around low cost and easy available services that are accessible through our smart phones. Uber though not the first took this made this business model quite famous. Today there are several companies along the line of Uber for various services.

They are most popularly called Uber for X. The success this service comes from the widespread usage of smart phones. With development in technology the price of smart phones has come down making it available for the masses.

There are dedicated applications for each and every service. So anything will be available at the click of an icon on your phone.

This model is successful and fast developing in the Asian continent. The major reasons being the huge population (demand) and need for services or products.

How it is beneficial to Asia’s environment

Most of the Asian countries are developing or newly industrialized nations. The populations of these nations are fast catching up with the technology and there is a huge urban population which is in dearth of services and products.

The cities are newly developed and are still building services and other necessities. At the background of this condition the new start-ups in this line are gaining lot of popularity among the masses.

The comfort these business setups give to the customer is another major draw. Any service at the comfort of house is the tagline.

A common city dweller knows the pain of getting a plumber to fix the leaky tap. The skilled labor required is of shortage in metros and cities, thus an app that guarantees this service at the required time at the click of a button are great welcome.

Similarly the cities and metros have eternal traffic and with not so good road systems and heavy population going out for purchase of goods is painful to already stressed corporate workers.

So an application that would deliver food or groceries will be a boon to these people.

The start-up culture in Asian countries is bursting with energy. People are eager to invest in them. The potential in their market is viewed and weighed. People too are interested to test these products and services. The conservative feeling of trying out a particular brand is fading. They are ready to experiment radically new ideas.

Technology factor

These new age companies require a tech team to get their platform on every smart phone. This means people with sound knowledge in engineering and software is required.

Today Asian countries produce technocrats and coders than most of their western counter parts. There is no lack of knowledge or tech people to handle the requirements.

Bridging the gap

Let’s take for example an electrician who has a good reputation in his locality for the quality of work he does and mo9st of the time you need to contact him over his phone for any small amount of work.

This is a frustrating process since you know he is not going to turn up for work at the right time and you need to keep calling again and again on when he would be arriving.

Any city dweller will relate to this problem. This is what on demand companies is trying to full fill. Imagine getting whatever service you need whenever you need.

These companies have electricians who will be sent to the service of their customers whenever required. They need to hold on to a reputation and thus have to offer their service at right time and properly.

Western countries style

The above stated example is already part of the western nations. They have innovative on demand companies coming up every day. Most of the Asian countries are trying to replicate the same in their countries by adapting it to their culture.

Uber is a great example for this culture, today every nation has a company that operates in similar fashion to Uber and competing with the original itself.

Logistics companies

Another industry that will flourish due to these companies is logistics companies. The high demand of people to deliver goods at the door step of customer will find themselves making a good fortune.

Job

These sectors will generate lot of jobs to both the skilled workers and the unskilled laborers. Creating a balanced growth for all and also developing the nation’s economy.

Competition

Though local companies are building themselves the western countries too are attracted to the huge potential market here and are entering this part of the world.

Recently British based start-up Deliveroo has got $100 million funding to enter into the Asian countries. This is not the fast or the last company to set foot in Asia. India and seem to be the fastest growing market for these companies in Asia.

Apart from USA Uber’s home country India and China are the biggest markets for the company given that they entered quite latter after their establishment in USA, still managed to gain lot of customers. However Uber has Didi Kuaidi of China and Ola of India competing aggressively with them.

Hurdles

On demand companies require a good amount of logistics to have smooth functioning. The lack of good infrastructure in newly industrialized nations is a hurdle for these companies to flourish especially those who deliver physical goods like food etc.

Legal hurdles

The frame work of laws is suitable for the 20th century industries not well suited for this latest fad. This makes things complicated when it comes to employment and labor norms though governments across the world are fast trying to catch up with them by framing laws accordingly.

Why on demand

Some might feel the on demand economy is over hyped and is just another change. Though it cannot be taken that lightly the thought of changing everything in demand is not necessary in some cases futile.

Imagine on demand in health care. This would turn out to be a disaster. You may get your medicines on demand from pharmacies but a physician on demand is not what people would need.

Health care or medical treatments are a continuous process. It is a personalized which will be a time consuming and a process that takes place with a certain amount of bonding.

Trying to get doctors on demand is not going to serve anybody’s purpose.

Trying to get started?

If you are planning to start on demand companies then remember you are going to compete against a dozen of them. Even if you are the first in that line in short amount of time you will notice a bunch of companies trying to compete against you.

So when you are planning to begin one make sure you address a real problem that is widespread in your society and you will be offering a fresh and a comfortable solution to it. Anything that is going to reduce the burden of customer and provide them with a flexible solution will try out to be an instant hit.

So to all the entrepreneurs out there has never been a better time to get your dreams true. If you are planning to set-up your own companies go ahead with good amount of planning and the right execution.

About the Author:

Anand Rajendran is CEO and Co-Founder of Dectar, best PHP scripts Development Company located in India. Dectar is a part of Casperon Technologies a leading social and mobile development company which is Developing Uber for X apps for the past 3 years. I’m a Tech geek, Digital marketing expert, Entrepreneur, and Atheist who loves to write everything about PHP Scripts and mobile application development.

 

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