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Manonita Rathore
Gig economy and behaviour &soft skills Expert
Asked a question last year

How the On-Demand Economy Works?

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Manonita Rathore
Gig economy and behaviour &soft skills Expert

The on-demand economy works by taking a service, such as meal delivery, hairstyling and makeup application, or handyman repairs, and using technology in order to connect suppliers with consumers.

This connection usually happens through a technological service such as a website or smartphone application, with both parties signing up for accounts in order to use the service. Then, when a customer is in need of a service, they open the app, input their parameters, and send a request to connect with a service provider.

The service provider is then alerted through the application of the service request and heads out to perform the task for the consumer. Upon completion of the service, payment typically takes place through the technology company. This ensures that there is no sharing of personal information between parties — as the technology company acts as an intermediary and safeguarder of personal information. Following service, both parties are prompted to provide feedback and ratings for one another, in order to improve the system and ensure the quality of service.