January 13, 2021
What’s coming in 2021 for the on-demand services sector?

What’s coming in 2021 for the on-demand services sector?

Technological advancements drive the world as almost every essential service is available on mobile apps. By now, business owners have realized that there is no sense in running a business without an online presence. Now that the on-demand service apps have reshaped our lives as it bought services closer than ever. These apps have made a massive difference in peoples’ lives and have also offered satisfactory benefits such as expandability, satisfaction, and profitability.

Business analysts have predicted that the on-demand services sector’s market value will reach $435 billion by 2021. With a massive user engagement of 22.4 million and combined spending of $57 billion, these apps have an annual growth rate of 49%. This article will analyze the business prospects of the on-demand services sector for the year 2021.

The onset of the COVID-19 pandemic was a significant issue for every business in the market. As the world is going through a challenging phase, it catapulted its effect on every industry vertical. Enterprises are facing heavy losses as people have started to practice social distancing. Several MNCs and firms have announced layoffs to manage the risks that lay ahead for them. However, amid all these crises, on-demand service businesses have stayed at the top.  At a time when several small scale industries toppled, the on-demand service providers are witnessing a surge.

Some of the significant business verticals that have a considerable share in the market:


On-demand video and music streaming application is a massive hit among the millennial and zoomers. They can get instant access to a plethora of movies, TV shows, and music tracks seamlessly from their smartphones.

Real estate:

Real estates contribute to the growing economy extensively as the advent of on-demand service apps took out the need for brokers. Since the model operates without an on-site agent, it increases efficiency, lowers the cost, and eases the process of buying or selling the property.

Travel and tourism:

Traveling and tourism have gone down for a while, but they will boost up the economy at the end of this tunnel. The advancements in technology have given rise to robust mobile apps that seamlessly help people get to remote locations. They need not have to worry about odd times, public holidays, and safety.

Food delivery:

The advent of on-demand food delivery apps has changed the landscape of restaurant businesses. The idea of offering convenient food deliveries has increased by service providers, and restaurant owners are able to yield a high return on their investments. 


People no longer have to stand in queues for booking an appointment with healthcare professionals. Previously, the hospital staff had to go through the hassles of maintaining a chunk of files that contained sensitive information on patients. The introduction of on-demand service apps helps people to reach the professional within a specific duration. Right from medicine delivery to booking doctor appointments, mobile applications have changed the scenario dynamically.

How on-demand service apps are performing amid the pandemic:

We will dive deeper into the strategies followed by the on-demand service providers during this pandemic that helped them to lead a peaceful life and boosted their overall revenue.

How did they handle social distancing and lockdown:

Ever since WHO announced only social distancing can curb the spread of COVID-19 pathogen, governments started to impose lockdown for their citizens. However, the rules were different based on the intensity of coronavirus spread in specific regions. People began to stay indoors as distancing themselves from others was one of the quivers in the arrow to survive. Service providers understood these scenarios and began to take advantage of this scenario. They devised several innovative business strategies to make this era more convenient for people.

How contactless deliveries helped the business:

For the time being, most service providers around the world have stopped accepting cash on deliveries/pay on deliveries. This leads to only one way for users to make payments; they should go with online payments. Since there is no exchange of money physically, service providers were able to ensure zero contact between the delivery executives and customers, ensuring their safety. Additionally, every delivery agent will be provided with masks and gloves adequate for the entirety of their work.

Instant service:

Service providers were able to make on-time deliveries even during the pandemic situation and have gained a vast customer base. They were able to build a wall of trust around customers through their sincere services and provided more than just instant gratification. Service providers understood that customer needs are most essential and cannot be compromised at any cost. They followed strict measures to ensure that WHO’s cleanliness guidelines were implemented.

Steps taken by entrepreneurs in this niche:

Contactless deliveries are the trend:

Contactless deliveries have become a trend among the on-demand service providers as everyone started to implement them. This strategy ensured the safety of both delivery executives and customers.

Multiple delivery options:

Several entrepreneurs have started to provide drone deliveries in major cities. It was an attractive way to lure customers and ensure their safety.

Understanding customer behavior:

Entrepreneurs should meet the customers’ requirements on a day-to-day basis to survive in a competitive market. They kept working on strategies to meet the ever-changing demands of customers. The apps’ flexibility options enabled entrepreneurs to integrate artificial intelligence programs for understanding their target customers’ behavior.

Collaboration with local businesses:

Usually, customers go with influential brands and providers in the market, but since the scenario is different now, people require products from local service providers too. By onboarding them, entrepreneurs were able to bridge the gaps between supply and demand that existed in the traditional models. This strategy has benefited both parties as customers got their essential products without any interruptions, and businesses were able to boost their overall revenue. 

What are the on-demand service trends that we might see in 2021:

The on-demand services sector is going through a new phase that might open doors to several opportunities. The demand for convenient services is skyrocketing because of the pandemic, and business analysts have predicted this trend will continue. The ever-lasting impression made by the service providers have impacted the customers and turned them into loyal customers. Every entrepreneur in the market is trying to do something unique and innovative with an On-Demand Delivery App Solution to get their slice of the market. Here are some of the top trends predicted for the

Light meals delivery:

People used to prefer on-demand food delivery apps for ordering meals when they find it hard to cook or for parties. Ever since the COVID-19 breakout, people have been working from home, and it has become a new normal. This lifestyle has resulted in people ordering light bites and snacks to fill their tummy. Reports indicate that the latest trend is yet to witness its peak, and it will be in the year 2021. In the forthcoming years, entrepreneurs are expected to follow this trend in order to boost their profits. As people started to go with home-cooked meals, the demand for snack food will increase in 2021.

Multiple orders from different providers:

People could only order from a single restaurant or place requests from only one service provider until now. Although several third-party delivery companies offered food delivery from multiple places, it wasn’t quite popular. The tables will turn in 2021, as on-demand service providers are planning on expanding their services that enable their customers to place offers from multiple providers. Their orders will be delivered at once or separately, depending on the products. However, the delivery executives will have to get products from various vendors.

Increase in on-demand parcel deliveries:

The concept of on-demand parcel deliveries has been in the market for several years; however, the pandemic has made it more popular than ever. It has become more blustering lately as people are confined indoors with the microscopic pathogens loose on the streets. These services offer the utmost convenience to the customers as the service providers ensure the safety of their things and on-time deliveries. Users need not have to freak out as they can track the location of delivery executives in real-time.

Ending note:

On-demand apps have the potential to take your business to newer heights as the services will continue to increase in the coming future. Entrepreneurs will be able to seamlessly harness this sector’s full potential as this business model supports multiple monetization streams. The on-demand services industry is witnessing a surge in user engagement, and as well as it has become an inseparable part of customers’ lives.

If you plan on getting into this sector, ensure that you offer nothing less of a top-notch service for utmost customer satisfaction. Moreover, the quarantined lifestyle has pushed people to rely on these services; you can lure customers only if you offer reliable services in an organized platform with best-in-class features.

Written by
Richard Wilson
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Written by Richard Wilson