Ready to Launch an Online Gig Marketplace? LinkedIn Is Already In The Game!
Have you heard about LinkedIn’s latest launch? Microsoft-owned LinkedIn plans to build a marketplace platform, called Marketplace, providing gig economy workers with a wide range of growth opportunities.
In an evolving business landscape, the on-demand economy has essentially transformed the very nature of the employer-employee dynamic. A catalyst for all entities involved, the on-demand economy enables technology companies and digital marketplaces to find access to skilled resources for fulfilling consumer demand. Given that digital transformation and rapid automation are nurturing the right advancements, employers and employees have now embraced the idea of an on-demand marketplace.
The Impact of the COVID-19 On the Workforce
With the COVID-19 pandemic bringing a paradigm shift within the work experience, working from home has now become the new normal and has led to the digitization of the employer-employee relationship. The pandemic has helped organizations realize the importance of trusting, motivating employees rather than restricting them within a routine. This is where an on demand marketplace comes into play, as service providers have the autonomy to design their schedule and workflow.
An efficient, scalable, and cost-effective solution for tackling the shortage of specialized talent, the on-demand marketplace certainly has its advantages over the conventional full-time staffing model. If managed diligently, on-demand labor can enable a company to gain flexibility, cut down fixed payroll overheads and potentially broaden its service offering. With it being predicted that in 2027, 86.5 million people will be freelancing in the United States and will make up 50.9 percent of the total U.S. workforce, it can easily be established that the freelancing community will continue growing rapidly. The idea is that consultants who wield holistic skills are more likely to succeed in today’s environment. This is because technical knowledge and business acumen are highly valuable to organizations eager for growth.
Find an On Demand Workforce with LinkedIn’s New Launch
A new entry in a landscape dominated by other giants, namely Fiverr & Upwork, Marketplace will follow a model similar to its predecessors. The platform will post freelance projects and work-from-home opportunities, which will likely comprise white-collar jobs, such as consulting, marketing, and writing. The plan to develop and launch the platform is said to have commenced in October 2019, which is when LinkedIn bought assets of a startup ‘UpCounsel’ that connects small businesses with freelance lawyers.
Marketplace will provide freelancers a channel to monetize the time they spend making connections on LinkedIn. In addition to exploring a market of freelancers, users will be able to post their own proposals to attract and book freelancers for certain jobs. Once work is completed, clients can post a review of the freelancer they had hired. Microsoft, LinkedIn’s parent company is also investing its effort in developing a digital wallet that will work across many of its services. This digital wallet will be used for facilitating payments and will be used as a source of funds for LinkedIn’s network of paid content creators, through which users can subscribe and tip content creators who they find engaging and valuable.
Marketplace, as a platform, has the potential to expand LinkedIn’s revenue streams, user base and will also enable clients to compare rates while booking freelancers. Moreover, LinkedIn is expected to take a cut for each transaction processed through Marketplace. With the COVID-19 pandemic broadening the demand for freelance workers, this move by LinkedIn can prove to be highly successful and profitable. A strategic plan for making the platform more helpful for service-providers, this end-to-end solution is set to go public in September’21.
The Behemoths of The On-Demand Industry– Fiverr & Upwork
Launched in the last decade, both the titans of the on-demand industry offer a marketplace to their clientele, where they can purchase and offer services. A medium for connecting private individuals and businesses, Fiverr allows freelancers to advertise their services to interested buyers, while Upwork matches freelancers with businesses that require an on-demand workforce. A client can seek help in nearly any work-related category, including data analytics, writing, marketing, accounting, web development, design, video editing, etc.
In Q2 2020, Upwork reported revenues just below $90 million USD, while Fiverr reported revenue of $47 million USD. With both platforms collecting a staggering amount of revenue, their presence and value in the market cannot be overlooked. The modus operandi of Fiverr is based on charging a flat fee (20%) for every successful transaction facilitated on its platform. On the other hand, Upwork charges anywhere between 5-20% for every successful job an organization promotes on its platform. A driving force within the on-demand marketplace industry, both the platforms offer payment protection, a quick turnaround, access to skilled talent, and access to a conducive workplace environment.
Why Investing in An On Demand Workforce App Is A Good Idea?
The on-demand economy is progressing at an unparalleled pace. With purpose, people, participation, platform, and productivity all being equally important, a marketplace designed for collaboration can yield favorable returns. In 2019, there were 57 million people doing freelance work in the U. S, which goes onto prove why the decision to build a marketplace platform can open up multiple income streams and lead to a high ROI.
A marketplace platform offers a scalable business model, carries less financial risk, enables analysis of sales, and automatically generates consumer interest due to a variety of options. A wise decision is to first develop an MVP (minimum viable product) version of your marketplace, establish a solid customer base, then focus on enhancing the platform’s functionality. All customers and businesses seek convenience and a trustworthy place where they can sell and buy services/products, and that’s what your marketplace should deliver.
Build A Marketplace Platform – Choose ODTap
If you’re looking to build a marketplace platform, then there is no better option than ODTAP. A California-based service, we at ODTap, can help create custom performance-intensive on-demand solutions based on your requirements, industry, and given niche. With years of experience in contributing to the success of global enterprises and startups, our team is well-versed in providing scalable solutions that help your business grow.
From guiding you to offering complete support during the initial launch and post-launch process, our team is available to assist you through and through. Known for serving the home services, delivery, laundry, real-estate, and ride-hailing industries, our team has a comprehensive idea of fine tuning each detail according to your specific needs. Whether you’re an organization looking to set up a portal for managing your business operations or are looking for an on-demand workforce app where you can manage different user-profiles and monitor user tasks, we at ODTap can help create a seamless solution. Developed to offer a streamlined user experience, our on-demand apps and web solutions are ideal for acquiring and retaining customers. So, get in touch with us for a consultation.