SaaS and marketplaces have both been individually praised in the startup ecosystem for their attractiveness as business models that reach scalability and replicability of revenues in a very short amount of time compared to other approaches. However, a new wave of startups is emerging leveraging the advantages of both models making it possible for these online businesses not only to quickly attain customers, but also to retain them, taking into account that churn rate is the biggest challenge for the long-term growth of every tech venture out there.
Something extraordinary is happening in the interception of tech & trade and it is emerging at an unforeseeable pace. Technology advancement along with rapidly changing consumer behaviour is creating an appealing value proposition and an extremely lucrative business in the face of on-demand marketplaces.
But despite the fact that the on-demand economy is the inevitable result of the new and younger generation, which is tech savvy and likes to get things immediately, the booming on-demand marketplaces are actually influencing consumer behaviour beyond early adopters to embrace the advantages created by this new model of trade.
This shifting behaviour among early majority because of the convenience of on-demand marketplaces sets an unprecedented pace of technology adoption that can only be compared with that of social networks. And while the previous decade was all about social networks, this one will definitely see the dominance of on-demand marketplaces beating the likes of big data, fintech & VR/AR.
A couple of months ago, Tom Goodwin from Havas Media wrote a notable article for Techrunch. Tom noted: “Uber, the world’s largest taxi company, owns no vehicles. Facebook, the world’s most popular media owner, creates no content. Alibaba, the most valuable retailer, has no inventory. And Airbnb, the world’s largest accommodation provider, owns no real estate. Something interesting is happening.”
Indeed, these online businesses, which also happen to be some of the most successful startups in the digital history with billions of funding and behemoth valuations, have achieved this status due to the way they affect consumer purchase behaviour.