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On-Demand Economy - Influencers Dinner Packet

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Statistics shared with mobile commerce industry leaders at The On-Demand Economy inaugural event on 7/1/14.

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On-Demand Economy - Influencers Dinner Packet

  1. 1. EMPOWERING THE BUSINESSES THAT ARE REDEFINING COMMERCE INFLUENCERS DINNER 7/1/14
  2. 2. The On-Demand Economy is a member-driven organization of mobile commerce executives, thought leaders, service providers, journalists, investors, and consumer advocates. We are experiencing a revolution enabled by new technologies and shifting consumer habits, spurring “The On-Demand Economy.” Mobile businesses are rapidly changing industries, cities, and lives, and smartphones are becoming the remote controls that allow us to navigate our daily lives. We believe mobile spending will represent the fastest and most transformational shift in consumer spending seen in history. The On-Demand Economy will serve as an unbiased platform to meet influential industry participants, collaborate with like-minded businesses, address collective issues, and provide access to research and data for all members. Discover, celebrate, and learn from this innovative new industry that is redefining commerce by making lives around the world easier and more convenient.
  3. 3. Table of Contents 3 I. The On-Demand Economy II. Grocery Survey III. On-Demand Influencers’ Survey IV. On-Demand Mobile Survey © The On-Demand Economy 4 7 13 23
  4. 4. I. The On-Demand Economy 4© The On-Demand Economy
  5. 5. 5© The On-Demand Economy On-Demand Framework 5
  6. 6. Fact Sheet 6© The On-Demand Economy 0 4 8 12 16 20 0 500 1,000 1,500 2,000 2,500 NumberofBusinesses TotalInvestnts(000's) Industry Sector On-Demand Investments Previous 5 Years Previous 12 Months Number of Businesses On-Demand Pioneers 0% 20% 40% 60% 80% Mobile Commerce Categories To Experience The Most Explosive Growth Over The Next Three Years 0% 10% 20% 30% 40% 50% Reasons For Trying Online Grocery Shopping Source: Data as of 6/30/14 compiled from AngelList and Crunchbase by On-Demand Economy Researchers Sources: National Restaurant Association, Euromonitor, GrubHub, AngelList, Crunchbase, Mobile Commerce Daily, IBISWorld, TechCrunch US Total AddressableMarket ($B) $683 $11 Total Capital Invested in Past 5 Years ($B) >$1.1 >$2.1 Number of On-Demand Companies (globally) >20 >25 Representative Businesses Monthly Active Users (000’s) >3,800 >450 Total Global Revenue in 2013 ($M) >$1,000 >$1,000 Estimated Growth Rate (per year) >50% ~200% Gross Margins (% of Rev) 10-15% 20-25% Mobile Transactions (as % of Total) >40% 100% Food Delivery Ground Transportation
  7. 7. II. Grocery Survey 7© The On-Demand Economy
  8. 8. Grocery Survey 8  The On-Demand Economy surveyed 250 shoppers on 6/12/14 - 7/1/14 at Trader Joe’s and Whole Foods in NY who were in the store but had previously purchased groceries online  Grocery delivery services such as Instacart, FreshDirect, and Postmates have raised over $372M in funding with nearly 40% raised in the past year  The On-Demand Economy’s goal was to determine the online groceries consumer’s:  Mindset when purchasing groceries online  Preferred medium for ordering online  Rationale for purchasing groceries in the store versus shopping online Overview © The On-Demand Economy Male 38% Female 62% Gender <20 2% 20-35 55% 36-50 32% 50+ 10% Age
  9. 9. 9  20% of respondents have purchased groceries online through their mobile devices © The On-Demand Economy  63% of respondents who have purchased groceries through their mobile devices are under 35, with only 13% older than 50 63% 13% 0% 10% 20% 30% 40% 50% 60% 70% <35 >50 Age Age of Shoppers Purchasing Groceries Through Their Mobile DevicesMobile 11% Not mobile 81% Both 9% Are Shoppers Ordering Groceries Through Mobile? Young Shoppers Dominate Mobile Grocery Shopping Mobile Grocery Shopping
  10. 10. Why Are They At The Grocery Store? 10  30% of respondents noted “being in the neighborhood” as one of their main reasons for not ordering online  Only 6% of respondents reported having a bad experience with a previous online order They’re In The Neighborhood… © The On-Demand Economy 30% 25% 19% 18% 13% 11% 11% 9% 6% 5% 0% 5% 10% 15% 20% 25% 30% 35% Rationale For Choosing Not To Purchase Online
  11. 11. 11© The On-Demand Economy  46% of respondents cited the convenience of deliveries as one of the main reasons for trying grocery delivery services  23% of respondents noted avoiding the hassle of carrying groceries as a key reason for trying online grocery delivery services 46% 23% 22% 19% 18% 16% 10% 8% 6% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% Reasons For Trying Online Grocery Shopping Why Try Purchasing Groceries Online? Convenience Is King!
  12. 12. 12© The On-Demand Economy  35% of mobile grocery shoppers noted incentives as one of their main reasons for trying the services, as compared to only 15% of Non-Mobile shoppers The Influential Power of Incentives for Mobile vs. Non-Mobile Grocery Shoppers 35% 15% 0% 5% 10% 15% 20% 25% 30% 35% 40% Mobile Not Mobile Transaction Method The Power of Incentives Mobile Incentives Are Key to Customer Acquisition
  13. 13. III. On-Demand Influencers’ Survey 13© The On-Demand Economy
  14. 14. 14© The On-Demand Economy  19 on-demand service executives and thought leaders were surveyed by The On-Demand Economy on 6/23/14-7/1/14  These surveys were conducted by The On-Demand Economy with the intention of:  Uncovering new trends and opportunities through the collective wisdom of those who know the space most intimately  Developing a collaborative viewpoint on persistent questions and concerns related to the industry  Highlighting commonalities between a wide range of on-demand services  On-demand business executives  On-demand business investors  On-demand industry 3rd party service providers Survey Participants On-Demand Influencers’ Survey Overview
  15. 15. 15© The On-Demand Economy Over valued 63% Under valued 37% Uber's Valuation n= 19 Uber’s Valuation Is Uber at $18.2B Over Valued?
  16. 16. 16© The On-Demand Economy Expected Compound Annual Growth Rate (next 3 years) 0% 10% 20% 30% 40% <10% 10-19% 20-29% 30-39% 40-49% 50-59% 60-69% 70-79% 80-89% >90% PercentageofResponses US M-Commerce Compound Annual Growth Rate During The Next Three Years n= 18 The Rapid Growth of Mobile Commerce 2x Expected Growth Over Next 3 Years
  17. 17. 0.0% 10.0% 20.0% 30.0% 40.0% 16-19% 20-24% 25-29% 30-34% 35-39% 40-44% 45-49% >50% M-Commerce Spend As a Percentage of Total US Digital Spend (E-Commerce & M-Commerce) in 2016 17© The On-Demand Economy 16% Estimates as reported by eMarketer Percentage of M-Commerce Spend/Total n= 18 Mobile Commerce Spend In 2016 61% Believe M-Commerce Will Comprise >30% of Total Spend
  18. 18. 18© The On-Demand Economy 0% 10% 20% 30% 40% 50% 60% 70% 80% Industry That Will Experience The Most Explosive Growth Over The Next Three Years n= 18 The Future of Mobile Commerce 67% Believe Grocery Industry Will Experience The Most Growth
  19. 19. 19© The On-Demand Economy n= 18 No 61% Yes 39% Do You Feel That We Are In a Bubble? Do You Feel That We Are In a Bubble? 61% Do Not Feel That We Are In a Bubble
  20. 20. 20© The On-Demand Economy Yes 89% No 11% Is Mobile What Makes The On-Demand Economy Possible? n= 18 The Impact of Mobile On The On-Demand Economy 89% Believe Mobile Makes The On-Demand Economy Possible
  21. 21. 21© The On-Demand Economy 0% 10% 20% 30% 40% 50% Government support Other (better experience) Collaboration between industry participants… Continous improvements in… Adoption in secondary and tertiary markets Appetite for convenience in… Factors of Success For The On-Demand Economy Percentage of Responses n= 18 Factors of Success For The On-Demand Economy 33% Believe Appetite For Convenience In Primary Markets is Key
  22. 22. 22© The On-Demand Economy 0% 10% 20% 30% 40% 50% Availability of financing Future market demand New regulations Technical resources Existing competition Current market demand Operational resources New competition On-Demand Worries: Investing and Operations Percentage of Responses n= 18 On-Demand Worries: Investing and Operations 39% Are Worried About New Competition
  23. 23. IV. On-Demand Mobile Survey 23© The On-Demand Economy
  24. 24. 24© The On-Demand Economy  Surveys conducted by The On-Demand Economy on 11/3/13-11/6/13 with over 9,000 smartphone users in the act of using a mobile application  These surveys were conducted by The On-Demand Economy with the intention of:  Assessing awareness levels of on-demand services within core demographics  Exploring how consumers engage with mobile applications  Smartphone owners  Primarily urban dwellers  Mobile application users Survey Participant Profile On-Demand Mobile Survey Overview
  25. 25. 25© The On-Demand Economy 22% 20% 24% 21% 24% 23% 27% 22% 78% 80% 76% 79% 76% 77% 73% 78% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Total NY LA CHI DA BOS SF Other Awareness of Uber By City Unaware Aware n= 9156 Awareness of Uber By City 22% of Smartphone Respondents Have Heard of Uber
  26. 26. 26© The On-Demand Economy

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