What is On-Demand Economy?
The on-demand economy is an economic model that connects digital technologies and services. Food delivery, taxi, repair service or online tutors are on the list. This connection usually happens through a technological service. For example, through a website or smartphone app.
How the On-Demand Economy Works
The on-demand economy works by connecting services and technologies. Food delivery, taxi, repair service or online tutors are on the list. This connection usually happens through a technological service. For example, through a website or smartphone app. Both parties sign up for accounts in order to use the service. Then, when a customer need service, he opens the app. He prints down the login and password and sends a request to connect with a service provider.
The service provider gets an alert through the application. As a result, he heads to perform the task for the consumer. When the service is completed, the money for the service are charged inside an app. The third-party company processes the payment. That ensures that there is no sharing of personal information between parties. The payment processor acts as an intermediary and safe guarders the sensitive information. Once the payment is processed, both parties are prompted to provide feedback and ratings for one another, in order to improve the system and ensure the quality of service.