The current generation of customers constitutes the most extensive consumer base of online on-demand home services. The rise in the number of internet users and the pandemic, busy lifestyle of consumers has induced demand for the online on-demand home services sector. Market trends show that the growth and accessibility of the smartphone market allowed customers to acquire relevant details and book services online. Reports claim that the on-demand services platform has also bridged the gap between real-world and online services platforms. These on-demand home services platforms usually comprise handyman, cleaning, chores, and maintenance services.
Growing global and Indian market
The global online on-demand home services market, according to market reports, will grow by $4,730.31 billion between 2021-25. Reports suggest that the CAGR during this forecast period will be well over 70 percent.
In the United States, the online on-demand home services market had to hit $85.7 billion in 2020. In comparison, the Indian home services industry projected $ 100 billion in revenues. When annualized, the average spending was INR 25,000 per household every year.
Factors for growth in India
A report by RedSeer, released in December, concluded that 56% of customers mentioned convenience as the driving factor for choosing online on-demand home services.
However, an interesting fact that seemed to come out in the reports was that several players had their hand at online on-demand services and failed. And the primary reason was the constraint on the supply side. Getting quality handymen is hard. Ensuring that they have the proper training and experience is even more difficult and costly.
Despite this, the report mentioned that companies in India could do well if they have these primary constraints under wrap and sorted.