On Demand Economy Trends…
In recent years, rapid technological advancements have shifted customer behavior and attitudes. Moreover, technology has accelerated the growth of on-demand services through digital channels, providing consumers with immediate access to items and services in areas such as food delivery, e-commerce, and healthcare, in addition to convenient and speedy delivery, in some cases, on the same day.
As consumers purchase more online amid lockdowns and restrictions amid the ongoing Covid-19 pandemic, this trend will continue to accelerate.
The on-demand economy is set to hit a record US$335 billion by 2025 thanks to the development of digital services worldwide.1 The growth of e-commerce and the on-demand economy gives Small-and-Medium Enterprises (SMEs) a unique chance to boost sales as well as position themselves for long-term success.
SME’s will have to create a seamless digital purchasing journey that extends beyond the checkout process. Two of the most significant reasons for consumers abandoning virtual shopping carts are high shipping costs and unsatisfactory delivery options. As a result, SMEs must employ digital solutions to differentiate their last-mile deliveries to win new business, retain customers, and win new business.
In order to cope with the challenges of the on-demand economy, logistics players continue to invest in disruptive technologies. While online orders are on the rise, SMEs should leverage these innovations to streamline deliveries, reduce costs, and improve profitability.
In an on-demand economy, SMEs will benefit from three hot trends in delivery technology.
1. Managing Inventory Rapidly and Effectively: 5G
5G is a game-changer because it offers data speeds up to 20-times faster than existing 4G long-term evolution (LTE) networks; encouraging mass adoption of the Internet of Things (IoT) by increasing data volumes and speed at which information can be analyzed, and facilitating the exchange of information between devices.
2. Tracking Deliveries In A Smarter Way: The Whole Picture
In the e-commerce ecosystem, customers are now informed about the status of their packages. With smart sensor technology, it is now possible for customers to know the exact location of an item in transit with pinpoint accuracy, as well as the conditions in which it is being transported. There is no doubt that this will revolutionize the way food ingredients, chemicals, and bio-samples are packaged.
With real-time location tracking and communication capabilities, drivers and customers can communicate more effectively, thus improving the customer experience.
3. Rapid & Seamless Delivery with Robotics
As a result of the pandemic, contactless services are in demand, driving demand for autonomous solutions. Globally, McKinsey projects 68% of shipments will be delivered by autonomous vehicles, compared with only 20% by traditional delivery methods. Many businesses are already experimenting with robotic delivery via self-driving cars and autonomous delivery bots in Asia.
In Singapore, autonomous robots are currently in the midst of a one-year trial to deliver goods in the northeast of the island, paving the way for more widespread use of robot delivery services. Also during last year’s pandemic, autonomous delivery vehicles were deployed in Chinese cities.
Cities in Asia are becoming more interested in adopting autonomous technologies. The Japanese, a global leader in robotics technology, are implementing robotics technology to solve multiple problems, including easing traffic congestion, enhancing productivity, and addressing aging populations.
As a result of economic reforms and statistics, it was found that the on-demand economy is more than just a passerby; it’s like Spiderman saving businesses and making them more efficient. Your business always needs some spice of success, as an entrepreneur. It’s on-demand right now. The time is right to adapt and integrate on-demand economy services into your business to generate greater profits and keep your business from becoming outdated. Embrace these services and grow with them. For a dipper look, check out the article on “On Demand Economy Trends.”
