What is Driving the On-Demand, Concierge Economy?
The Concierge Economy is defined as disruptive brands (such as Uber) providing information at consumers’ fingertips (mobile or web), then providing the service (such as taxi service) instantly, at a reasonable cost.
Uber, a ride-sharing service founded in 2009, is now valued at over $50 billion dollars with a presence in 58 countries and 300 cities worldwide. Uber has been disruptive as a company because it has met the basic human need for help. Instead of being at the mercy of a taxi line, consumers can now have car service instantly.
To add to this disruption, Uber has recently launched pilots of its UberRUSH, a same-day retail delivery service integrated with a merchant’s checkout process, UberEATS, a food delivery service and UberHOP and UberCOMMUTE, ride sharing services which may eventually disrupt mass transit.
TimeTrade recently surveyed 5,444, consumers and asked them “If you use an on-demand service such as Uber, what is the appeal? (Choose all that apply).” 52% of respondents report that it is because “The service is more convenient,” followed by 49% choosing “The service is lower cost” and 35% reporting “I like that it is an alternative to traditional services.” When broken down by demographic, Gen Z (20 and under) and Millennials are the demographics that most like Uber because it is more convenient and lower in cost. In other words, what is driving the on-demand, Concierge Economy is the basic human need for help. Consumers no longer want to be at the mercy of a taxi stand or waiting days for items to be shipped to them.
And, as Millennials overtake Baby Boomers as the largest demographic in the U.S., so does their buying power. Any company marketing to consumers today must also keep in mind that Millennials and Gen Z are the most tech savvy generations to date. As these generations use devices at their fingertips, converting their digital first touch into a more valuable level of engagement all the way through the point of sale, is key.
So, as companies such as Uber continue to shape and raise the bar for customer expectation, larger enterprises must be willing to adapt to this type of concierge-like service model. Those who do not will lose out to players who are willing to continually adapt to consumers’ ever-changing service needs. Today’s enterprises must keep in mind that when it comes down to the fundamental need of help, today’s leading companies are continually redefining the type of help that is offered and subsequently reshaping expectations.
To learn more about the on-demand, Concierge Economy and how it is reshaping customer expectations, join me as I moderate a webinar this Friday, February 19th at 2:00 pm EDT with panelists Robert Scoble, Futurist for Rackspace, Jeremiah Owyang, Founder of Crowd Companies and Gary Ambrosino, CEO of TimeTrade.
For more information on meeting customer expectations today, download our free Whitepaper, The Concierge Economy: How Leading Companies are Restructuring Retail.