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On-demand delivery business ideas in 2021

We live in a consumer-centric era where technology has changed the traditional game for many businesses. People are now hooked to their smartphones and other devices searching for means to make their lives more convenient. Moreover, the on-going global pandemic, where the world is at a standstill with frequent lockdowns, has established a lasting impact on the way of life for many. In times like these, when businesses are facing unprecedented losses, on-demand delivery solutions are experiencing an upsurge in the number of users.

The question that now needs to be addressed is how long will this surge continue? What is the future of on demand delivery model in the e-commerce sector for the year 2021?

In this article, we will explore the stats, some of the on-demand delivery business ideas for 2021, and their future prospects.

Market Trends/Stats for the On-Demand Business Industry

The boom that the on demand delivery model experienced in 2020 seems to continue in 2021 as well. Even though the vaccines are available now, it might still take a year or two for the world to get rid of this.

Hence, the question is, whether the on demand delivery model will continue to provide a soaring level of satisfaction for its customer or will it start to decline? The following stats will provide us with insights about this industry in the upcoming years:

  • The on-demand sector will reach US$ 435 billion in 2021 with an annual growth rate of 49%.
  • Based on the CBInsight Report, 23 out of 100 private companies are currently present in the on-demand sector.
  • 49% of the on-demand app users are millennials while 30% belong to the ages between 35-54.

Food delivery

The food delivery solutions sector is estimated to show a growth rate of 32% in 2021. Based on research, the global revenue for the online food delivery business has doubled since 2017. Venturing into this startup business will be very profitable in the coming years due to the popularity the food delivery sector has gained in such a short time. The best practice here is to concentrate on some specific cuisines for a smaller customer base, initially, and then gradually go for a broader cuisine option. Some of the leading food delivery companies are:


The United States spends more than the world’s average on healthcare and, as reported by the healthcare stats, on-demand healthcare is one of the fastest and largest growing industries. Based on a recent survey, global healthcare spending is estimated to reach US$ 10 trillion by 2022 which makes this a good time to invest in the digital healthcare sector.

Efficient medical treatment of patients in far-off places with limited or no access to technology is one of the biggest challenges the healthcare industry is facing and to overcome this, telehealth services can take forms like: remote patient monitoring, collecting and forwarding medical information from areas where internet facilities are available, and through mobile health communication.

The services that this on-demand sector provides are booking appointments, ordering medicines, and scheduling doctor appointments. Below are some of the major on-demand healthcare providers in the US are:

  • MDLive
  • Zocdoc
  • Doctor On-Demand
  • Teladoc

Delivery and Logistics

The driving force behind this industry is e-commerce which has grown by US$ 2.4 trillion in the year 2018. Last-mile delivery and logistics are experiencing a boom with people willing to pay 30% extra for same-day deliveries along with forecasts reaching a 25% market share by 2025.

Amazon is leading the way when it comes to on-demand delivery model with the help of self-flying drones. Their city of the future has three patented ideas, all in favor of making last-mile deliveries even faster and more reliable. The on-going corona pandemic has also accelerated technology adoption in the delivery and logistics sector with people working from their homes and willing to accept orders right at their front doors. Some of the leading companies in this vertical are:

  • UPS
  • FedEx
  • Postmates

Taxi Services

The taxi services, which were once a luxury are now a necessity with over 36% of adults in the USA using this mode of transportation daily. With reference to Statista, the ride-hailing industry will reach US$ 260 million in 2021 and is expected to grow at an annual rate of CAGR 10.4% in the period 2021 to 2025 resulting in a projected market volume of US$ 385 million by the year 2025.

Uber is amongst the first and the best taxi app companies in the world and it was after this that many others also started investing in this on-demand solutions services industry. People living in urban areas are more drawn towards using these services due to the large pool of options they can readily choose from at their convenience in comparison to rural or remote areas. Here is a list of some best taxi apps:

  • Uber
  • Lyft
  • Alianza Taxi
  • Gett
  • Grab

Construction Services

The on-demand construction app development is a plus since construction businesses in the US are experiencing constant growth and are also one of the most significant employers in the country. In fact, the construction services industry has helped the US gain significant financial stability.

According to research, 8% of the entire full-time working force in the US is in the construction business and around 15% of the construction firms have 1000 or more employees. Building a comprehensive on-demand delivery model for construction can help master operational procedures happening at the construction sites. BidSquad is a leading construction management software developed by ODTap’s parent company

Beauty Services

During Covid-19, one of the industries that had to suffer the most is the beauty industry with social distancing becoming a norm for us. Based on stats, 30% of the beauty market had to shut down with an overall 20% – 30% decline because of the global pandemic. The need for on-demand beauty services is, therefore, increasing, and hence tapping into this industry right now will be very profitable in the future.

On-demand beauty is the availability of salon services at your homes or offices with just a few clicks on your mobile phones. Whether you want an at-home massage or blow dry, everything is being made available to you in the comfort of your home. Some of the existing players in this vertical are:

  • Glamsquad
  • Priv
  • MySpa2Go

Home services

The home services sector is experiencing an upsurge nowadays with so many organizations entering into this industry. With reference to stats during the current pandemic, the home services sector in the US will grow up to US$ 1,574 billion in the period 2020-2024 along with persistent growth which stands at US$ 600 billion.

46% of the people in the US prefer scheduling appointments via their phones which clearly shows the groundbreaking potential in this industry. This on-demand sector offers home cleaning and repairing, gardening services, plumbing, electrical services, and much more. Some of the key players functioning in this domain are:

  • TaskRabbit
  • Amazon Home Service
  • Handy

Grocery Services

According to Statista, the grocery delivery in the United States will double from US$ 14.2 billion in 2017 to US$ 29.7 billion in 2021. In August 2019, 52% of the grocery stores in the US were offering grocery home delivery in addition to 25% planning to integrate online grocery services in the coming years.

The Instacart Business Model is amongst the 20 businesses started by Mehta, who is a former Amazon supply chain engineer, in the early 2010s. During the COVID-19, the grocery delivery solutions industry has experienced a wave of consumer upsurge with Instacart reaching its 2022 goals in the fifth week of lockdown. This shows the remarkable success this sector has had over the years along with constant exponential growth. Some major players in this vertical apart from Instacart are:

  • goPuff
  • Shipt
  • FreshDirect

The On-Demand Sector in 2021

If we look at the bigger picture, we can conclude that the world is going digital with e-commerce businesses looking to dominate the market. In 2021, the on-demand industry will face an upsurge while many other businesses are encountering remarkable losses. Thus, the coming years are a golden era for entrepreneurs looking to build their on-demand ideas and joining this industry bandwagon.

If you are looking to leverage this surge by joining this mobile industry then ODTap is your one-stop solution. We can assist you in building your on-demand solutions in the various industry sectors discussed above. Reach out and our team of experts will get back to you soon.

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