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Blog & Company News

Written by Miranda Simmons
on July 02, 2015

Not so long ago, the next big thing was apps and smart phones and the speed and efficiency they brought businesses and consumers alike.

Now with smart phone penetration at an all-time high, mobile e-commerce is booming.  According to an e-Marketer report, between 2013 and 2017, mobile phone penetration will rise from 61.1% to 69.4% of the global population (Worldwide Mobile Phone Users: H1 2014 Forecast and Comparative Estimates).

Thanks to the exponential smartphone uptake and rapid technology development, the era of On Demand Mobile Services has dawned!


So what exactly is On Demand Mobile Service?  

There are many different explanations out there, here are a few that I think best summarize ODMS:

  •  “On Demand Mobile Services represent applications that aggregate demand on mobile services but fulfill that demand through offline services.”  Semil Shah, Venture Capitalist for GGV & Bullpen Capital
  •  "On Demand Mobile Services deliver a “closed loop” experience by collapsing the value chain including discovery, order, payment, fulfillment (offline but within owned network) and confirmation."  Steve Schlafman (@Shlaf), VC at RRE Ventures
  • The On Demand Economy is defined as the economic activity created by technology companies that fulfill consumer demand via the immediate provisioning of goods and services" Mike Jaconi, Co-founder, Button

The On Demand Economy is booming!

How does it work?

Not too long ago, when we searched online for a service provider, we needed to call or email them, wait for them to get back to us, schedule a convenient time, wait for the provider to turn up and then pay them with cash, credit card or by internet payment later on.  This process was exhausting and time consuming!

Now today, a huge range of mobile services, particularly On Demand Mobile Services, remove the friction and deliver a painless experience for the customer.

The ability to order services online will result in an explosion of on demand services over the next few years.  ODMS can be anything from food delivery, home services through to babysitters, ordered by the customer using their mobile (or other device) and delivered to their door in a short space of time.

Think minutes, not hours!  

Here is a great overview of the current On Demand economy which covers the different industries seeing growth in ODMS currently:





So why are On Demand Mobile Service industries seeing rapid growth?

The key difference between consumers buying online with their mobile phone and on demand mobile service is speed of delivery. It’s no secret that most consumers are impatient. We buy online and we want instant gratification. When do we want it delivered? Now! Clicks and mortar businesses are continuously speeding up the delivery process in order to retain their loyal customer base. Amazon and Iconic are just two examples of offering same day delivery options which broke the mold.  Uber is probably the best known On Demand Mobile Service provider and their meteoric rise to success has been phenomenal.

Purchasing online, via mobile gives consumers the convenience of shopping for anything, anywhere, anytime.  Adding in the final component of immediate delivery completes the transaction for the customer.  On Demand Mobile Service provides customers with the power to order whatever they need and have it delivered right to their doorstep.

Using a ready made platform such as vWork, that provides you with real time delivery or fulfillment, means you can get to market more quickly than if you built everything from scratch.

Service providers will need to consider mobile on demand options to remain competitive

Existing businesses will need to look at their delivery model and adapt through the implementation of smart technology to take their offering to the next level. Otherwise they will need to be prepared to lose their valuable customer base to competitors and new start ups who build their service around the on demand mobile model.

Here is a detailed info-graphic from Juggernaut that I think sums the whole ODMS economy really well - it's long but really informative!

ONDMS Inforgraphic


Discover for yourself how vWork can help your business deliver On Demand Mobile Service to your customers.  Book a live demo today or try it for yourself, free for 30 days.


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