The old model followed by Uber and Airbnb is business-centric and it was observed that customer and service should be the primary focus. At first glance the “on-demand” apps that leverage mobile technology in order to allow them to summon anything from a late-night service.
When last year startups were adopting Uber model and failing one after the other in the on-demand app business, a closure of the model was investigated by the experts and they came up with the theory that in running the on-demand apps, service comes first and technology later. For example, if you have built an app which has very nice front end and good GUI but fails to deliver the promised services then the app will not be liked by the users whereas if there are some designing issues but the service is excellent then the business can survive and the form will get the second chance to build better app with more user-friendly features.
Of course, the smartphones help in coordinating and supporting by having its own built-in functions like geolocation, etc. but the technology alone does not attract the end customers anymore.
In the on-demand market, the entrepreneurs are not launching technology or even apps. They are instead starting child-care companies, retail stores, restaurants, and laundry services that use mobile technology not only for delivery but as a way to be more efficient at every step of their operations.
Why the Uber Model Fails?
In the US the laundry app started this controversy, actually Uber is a tech company running its Taxi business whereas this businessman was running a cleaning service. At present both the companies are providing the services using the on-demand mobile apps. But the laundry app is doing much better than Uber with the customer-centric approach who started to take help of technology at much later stage. The revolution of the company and its tie-up with the clothes washer and dry cleaners in almost all parts of the city provided a solution which was cost effective and comfortable for every user. But the business of this company was also seen going down in 2015 due to lack of technology advancements. Later on, it hires all the people with whom the company had tied up earlier and doing a profitable business once again.
The observation from both these cases can be drawn that technology alone can’t succeed and customer approach too can’t be able to drive a successful business. And that’s how Matrix Marketers and other mid-sized app development companies are surviving, by making sure that it’s a business that customers want to use over and over again.
The other important marketing strategy is to build a brand by using digital marketing techniques and to advertise your product in such a way that instantly users must be attracted to use the services you are providing. Also, the changes are must in providing the services by shuffling the offers, discounts, and some other services apart from changing the mainstream service. For example, Uber is now giving a service to book a bike and so on. The things like Amazon’s one-day delivery has hit the market. Now if we see, the technology has nothing to do with it. It’s the transportation service has to be faster.
One new dimension of mobile apps is seen in coordination sector where many entrepreneurs have started using on-demand apps to conduct the business activities. This entire process brings an efficient model by adding tiny efficiencies throughout its entire operation, contributing to a pace of sales almost three times faster.
To summarize, we can say that rather than creating a protecting technology layer for your business, it is better to create a mobile enabled service. The quality service and the clarity on doing faster execution always help as the competition is increasing rapidly.
The apps with higher prices and providing the elite services will also likely to hit the market next year. Overall, the on-demand app market is increasing and going to stay as a future technology of doing a profitable business.
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