The emergence of on-line services such as Uber and Handy
and others has ramped up the profile of online demand. It represents an
interesting convergence of consumer expectations and technology.
Are these types of services fighting an
uphill battle?
The Economist thinks perhaps.
“There are three reasons for skepticism about their chances. The first is that
on-demand companies trying to keep the costs to their clients as low as
possible have difficulties training, managing and motivating workers….The second
problem is that on-demand companies seem likely to be plagued by regulatory and
political problems if they get large enough for people to notice them….The
third issue is size. The on-demand model obviously has network effects: the
home-help company with the most help on the books has the best chance of
providing a handyman at 10:30 sharp. Yet scaling up may be difficult when
barriers to entry are low and bonds of loyalty are non-existent.”
From The Economist,
“There’s an App for that,” January 3, 2015.
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