Survey conducted by The On-Demand Economy with industry leaders. Led to some interesting dialogue at our dinner event on 9/15.

1. The On-Demand Economy

2. The On-Demand Economy
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.
Smartphones are quickly becoming the remote controls that
allow us to navigate our daily lives, and mobile spending will
represent the fastest and largest spend shift we have 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. On-Demand Framework

4. Delivery 2.0 Survey

5. Do you foresee long-term profitability at scale for Delivery 2.0
Source: The On-Demand Economy
n = 20
The Future of Delivery 2.0
4 out of 5 believe Delivery 2.0 will achieve long-term
profitability at scale
80.0%
20.0%
companies?
Yes No

6. 80%
70%
60%
50%
40%
30%
20%
10%
0%
Key Reasons why Delivery 2.0 will have long-term success
Smartphone
penetration
always connected
lifestyle
Source: The On-Demand Economy
n = 20
Why Will Delivery 2.0 Succeed when 1.0 Failed?
Improved Technology Shifting Consumer Behavior are
the primary reasons for Delivery 2.0’s success
Increased comfort
with purchasing
online
The rise of the part-time,
or 1099,
worker
Lean inventory
models
Measured growth, eg
product market fit
prior to expansion
Expectation for
Instant Gratification

7. 80%
70%
60%
50%
40%
30%
20%
10%
0%
Source: The On-Demand Economy
n = 20
Where is the Growth?
Grocery Food Delivery to Lead On-Demand Explosion
Key Sectors of M-Commerce Growth Over Next 3 Years

8. Logistics is key to achieving dominance in Delivery 2.0
8
100.0%
90.0%
80.0%
70.0%
60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
Key Competency to Achieve Competitive Advantage in
Logistics Engineering Partnerships
BD
Design Marketing Human
Resources
On-Demand Delivery
Source: The On-Demand Economy
n = 19
How to Achieve Competitive Advantage?

9. What Keeps You Up At Night?
Owning the Customer Product Quality Availability
are most concerning
40%
30%
20%
10%
0%
Product
availability

10. Product quality Ownership of
the customer
Departure for
another platform
Hours open Other Minimum order
quantity
Key Vendor / Supplier Issues
Source: The On-Demand Economy
n = 19

11. Why Do They Leave?
Desire for Greater Compensation Advancement
Opportunities Largely Responsible for Turnover
70%
60%
50%
40%
30%
20%
10%
0%
Satisfying working
salary expectations
Offering
Advancement
opportunities
Inability to perform
the core
responsibilities
Scheduling mutually
amenable hours
Other Satisfying worker
benefit expectations
Primary Factors for Employee Turnover
Source: The On-Demand Economy
n = 19

12. 50%
40%
30%
20%
10%
0%
What Keeps You Up At Night?
Operational Resources are the Biggest Operating
Challenge in the On-Demand Economy
Key Operating Challenges of On-Demand Businesses
Source: The On-Demand Economy
n = 19

13. Where Do Customers Come From?
Referrals, Facebook, Google are top traffic providers
60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
Top Customer Acquisition Channels
Source: The On-Demand Economy
n = 18

14. Where Will Customers Come From?
M-Commerce Apps to Drive Future Customer Acquisition
Do You Acquire Customers from Complementary
Mobile Commerce Applications?
Yes, 67%
No. If no,
would you
ever consider
it in the
future?, 33%

15. 33% of participants acknowledged
that did not acquire customers from
complementary mobile applications,
but 88% of those respondents said
that they would do so in the future.
Source: The On-Demand Economy
n = 18

16. Customer Economics of Delivery 2.0
LTV Rising while Acquisition Costs Decline
16
14
12
10

17. Current Trends of Customer Acquisition Costs and Customer
Lifetime Value
8
6
4
2
0
Decreasing Holding Steady Increasing
Customer Acquisition Cost Customer Lifetime Value
Source: The On-Demand Economy
n = 16

18. Service
quality
How to Succeed in a Crowded Marketplace?
Brand Service Quality seen as key differentiators
Primary Levers to Fend Off Commodization
Brand Customer
service
support
Price User
interface
Availaibility Loyalty
program
Other
Source: The On-Demand Economy
n = 20

19. 90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Source: The On-Demand Economy
n = 14
Who is Your Competition?
Amazon Google are primary threat to future growth
Best Positioned to Compete With You

20. The On-Demand Economy