The 21st century has brought a tectonic shift in the world of coaching, evolving significantly over the previous decade (due to the rising internet penetration). And, with the unexpected outbreak of Covid 19, where social distancing, staying at home, and no physical contact have been the need of the hour, students and learners have transitioned from in-person and telephonic offerings to those more appropriately segmented and distinguished as digital coaching or remote coaching.

In this post, we discuss online coaching in detail – the market scope of the online coaching industry, leading players, popular trends, niches, and the benefits of online coaching marketplaces. Then we’ll move on to understand the business model of an online coaching marketplace with its essential features. Lastly, if as an entrepreneur you are looking to launch an online coaching marketplace, we bring you insights on how to kickstart and scale your online coaching business.

Table of Contents:

• Global Market Overview
• Popular Trends Shaping the Future of Online Coaching Industry
• Lucrative Niches to Start an Online Coaching Business
• Benefits of Launching an Online Coaching Business
• Business Model – Online Coaching Marketplace
• Top Dominant Players – Online Coaching Industry
• Essential Features to Have in an Online Coaching Platform
• Starting an Online Coaching Business
• Approaches to Scale an Online Coaching Business
• Final Words
• FAQs

Global Market Overview

In today’s digital era, online coaching businesses are on an upward trajectory. The growth of the market can be attributed to the growing prominence of digital education and eLearning post Covid-19 pandemic.

According to a report by Verified Market Research, the online coaching platforms market size was valued at USD 1938.39 Million in 2020 and is projected to reach USD 4567.42 Million by 2028, growing at a 13.03% CAGR from 2021 to 2028.

Online Coaching Platforms Market – By Geography

On the basis of regional analysis, the Global Online Coaching Market is classified into – North America, Europe, Asia Pacific, Rest of the World. North America accounted for the largest market share in 2020 (base year) and is projected to grow at a CAGR of 11.92 % during the forecast period. This is mainly due to the rapid growth and increasing demand for online coaching platforms in the region.

Popular Trends Shaping the Future of Online Coaching Industry

Heraclitus once said, “Change is the only constant in life.” As economic dynamics and generational change continue to influence the world, the coaching industry will continue to evolve. This section focuses on the major trends that will shape the future of the online coaching industry.

Great Coaching Opportunities in Niche Sectors

Coaches specializing in niche sectors will see more employment opportunities on average than coaches without any specialization. This trend will particularly benefit niche professionals as it reinforces the brand value, uniqueness, and brilliance of the coach. Having a specified niche allows the coaches to focus on a client with specific requirements, understand their pain points and connect with them effectively.

Gamification is Here

Many coaches and organizations will use gamification to keep their students/clients more engaged. Gamification introduces games and playful quizzes that reward points or badges for leaderboards or unlock new features in the course of successful completion. This feature is observed to increase information retention, learner motivation, and course completion rate. Creating highly interactive and engaging programs and incorporating small games into the course can reduce dropout rates and increase repeat buying.

Lucrative Niches to Start an Online Coaching Business

Generally, online coaching has either been used for corporate growth or educational purposes. But the trend for personal growth has created a demand for online career coaching, life skills coaching, relationship coaching, wellness coaching, health coaching, and others. In this section, we discuss a few of the lucrative private coaching niches in detail.

Life Coaching 

Life coaching entails a life coach who is dedicated to helping clients overcome their everyday challenges. For example, a client might want to control their anger or be more composed during a stressful situation; then a professional life coach who is adept at helping tackle such situations is connected through the coaching platform.

Health and Wellness Coaching 

Online health and wellness coaches empower their clients by helping them discover a unique path toward personal well-being. The action plan includes step-by-step progress towards achieving goals for a healthy and fulfilling life. Nutrition, diet plans, personal training, and more are usually handled by a health and wellness coach.

Relationship Coaching 

Online relationship coaches are experienced specialists in a broad range of relationship dynamics. They help people find greater gratification in their personal relationships (platonic or romantic) and provide clients with the tools they need – to communicate better, find deeper connections with others, and healthily resolve conflicts.

Career Coaching

Career coaching aids in getting the guidance and support needed by an individual to reach their career goals. As resumes need to showcase the right skills and capabilities to do the job at the level being advertised, a career coach can help individuals position their skills in the context of the potential role, especially the transferable ones that don’t match up with what is in the job description. Individuals can also gain assistance in getting a raise or a promotion by seeking guidance from an online career coach.

Financial Coaching 

A financial coach serves in a motivational capacity and provides needed input about managing personal finances. They can assist with behavioral and emotional components of managing money and can help an individual unearth what drives their financial decisions. They may also help with planning a household budget, the execution of savings strategies, and so on.

Benefits of Launching an Online Coaching Business

For Coaches

Time and Cost Efficiency –  The commute time and the cost of the coaching center are eliminated making online coaching lighter on resources.

Diversity – There are no geographical barriers while working online. Hence, as a coach, you will be able to work with potential clients from all over the world.

Flexibility and Freedom –  Physical location and rush hour are no longer limiting. Coaches can conveniently conduct online coaching sessions from anywhere and utilize available time slots more productively.

Easier Content Delivery –  With an online coaching platform, content delivery gets easier as there are a lot of methods to deliver the content. This includes video calls, audio calls, messages, and more.

For Business Owners

Global Presence –  In the age of digitalization where most individuals have smartphones, business owners can widen their reach and expand their client base by having an online presence.

Better Profit Margins – Having an online marketplace makes it possible to connect with coaches/learners from anywhere in the world. The low cost of setting up an online coaching marketplace also plays a big role in helping business owners achieve better profit margins.

Automation- From customer relationship management to online billing and payment, everything is done automatically. For example, the primary source of revenue for admin is the commission received from coaching. This can be done via automation as then there will be no need to do any paperwork, everything will be done automatically through the platform.

Business Model – Online Coaching Marketplace

An online coaching marketplace acts as an intermediary between potential coaches and clients. Its working is fairly simple where coaches can enroll themselves with the online coaching marketplace, coach as per their availability, and add a solid revenue stream to their income. On the other hand, a client can select a coach as per their requirements and check their availability for booking a session.

Next, the client makes the payment and books the session with the coach (group session or one-to-one session). Upon the successful completion of the session, the client can provide feedback to the coach. Once the session is marked as completed, the admin releases the coach’s earnings after deducting the commission.

Top Dominant Players – Online Coaching Industry

The online coaching market is witnessing increased competition as several platforms have been introduced globally and are providing various types of coaching services with just one click. Below we mention the top players who are dominating the online coaching market.

• Leland
• CoachList
• Coaching.com
• CoachTheWorld

Essential Features to Have in an Online Coaching Platform

To reach potential clients it is important to have an online coaching platform with all the required features. Listed below are the most crucial ones:

Video Conferencing

Productive meetings require crystal clarity for participants to feel like they’re in the room with each other though being geographically distant. Hence, the video conferencing feature creates a realistic and collaborative virtual environment, which is pivotal for learning and retaining information. Also, a study has shown that 90% of people find it easier to get their point across when they are seen. Other interactive tools during video conferencing include text chat, whiteboard, file/screen sharing, and so on.

Multilingual

Online coaching platforms with multiple language support become highly engaging as they help in optimizing the user experience by localizing the process and putting an end to linguistic barriers. This feature also enables users from all over the world to achieve their eLearning goals.

Multicurrency

Like multilingual support, multicurrency support also makes it convenient for users from different regions across the globe to make or receive payments. This also aids in higher conversion rates and sales.

Secure Payment Option

Safe and secure payment option is a must-have feature for your online coaching marketplace. It must be powered by the most secure payment gateways such as Stripe, PayPal, Authorize.net, Paystack, and PayGate. Other payment options include debit/credit card payments and digital wallets.

Review/Rating

Review/rating is a systematic feedback system that allows clients to get a sense of what to expect before selecting a coach. It is an effective way to build trust and transparency in the online coaching platform and is one of the prerequisites.

Availability Calendar

An availability calendar lets the coaches list their availability dates and time, i.e. the clients will be able to view what dates your accommodation as a coach is still available and what is already booked. This feature must also include functions such as canceling a class on a particular date and the reason for cancellation.

Push Notifications

An online coaching marketplace should be able to send notification alerts to both coaches and clients. These notifications act as a reminder so that neither the client nor the coach forgets anything from the schedule.

Starting an Online Coaching Business

Setting up an online coaching business requires the involvement of various experts and professionals from different backgrounds like business experts, marketing analysts, design specialists, and developers. All of these specialists get involved at different stages to launch an online coaching marketplace.

On the other hand, there is a hassle-free method of launching an online coaching marketplace, i.e. opting for a pre-built online coaching software like Yo!Coach. It is rich in features and can be customized as per your business needs. No development is required, so the time to market is way too less than the online coaching platform that will be built from scratch.

Approaches to Scale an Online Coaching Business

When it comes to sustaining your business, scaling is pivotal. It allows you to keep up with the momentum toward continued growth. In this section, we discuss the approaches to scaling an online coaching business.

Create a Group Program

Creating a group program allows coaches to teach and impact exponentially more people at once than can be done through one-on-one coaching.

Digitalize Products and Services

Adding digital products like video courses or e-books to your offering can help scale your online coaching marketplace.

Scale Your Brand’s Online Presence

Since your coaching business depends on the internet (as a medium) to deliver your services, having a strong online presence will enable you to reach potential clients.

Build a Marketing Collateral

Once you have an initial client base, use their stories and experience to attract new clients and drive more conversions. This can be done via testimonials, case studies, interviews, and more.

Final Words

In the modern era, online coaching is acting as one of the mediums to disseminate education to individuals who are looking to enhance their skills. This presents an opportunity full of potential, which if properly harnessed, can open avenues for entrepreneurs who are looking to enter the online coaching industry.

So, as an entrepreneur, if you are looking to launch an online coaching marketplace, get in touch with us at FATbit Technologies. Our team of multidisciplinary experts will help you to kickstart your online coaching business in less time.

FAQs

Q1. What is the market size of the online coaching industry?

According to a report by Verified Market Research, the online coaching industry was valued at USD 1938.39 Million in 2020 and is projected to reach USD 4567.42 Million by 2028, growing at a 13.03% CAGR from 2021 to 2028.

Q2. What are the benefits of starting an online coaching business?

An online coaching business has numerous benefits.

For Coaches:

• Time and Cost Efficiency
• Diversity
• Flexibility and Freedom
• Easier Content Delivery

For Business Owners:

• Global Presence
• Better Profit Margins
• Automation

Q3. How does an online coaching platform work?

An online coaching marketplace acts as a bridge between clients and potential coaches. The working of the platform is simple where coaches can list themselves on the marketplace and coach from geographically diverse locations.

On the other hand, a client can select a coach and check their availability. Post selection, the client makes the payment and books the session with the coach. Once the session is marked as completed, the admin deducts the commission and releases the coach’s earnings.

Q4. What are the essential features of an online coaching platform?

A few features that can make an online coaching platform more accessible and trusted among users include:

• Video conferencing
• Multilingual content
• Secure payment gateways
• Review/Rating
• Availability Calendar
• Push notifications

 Last Updated: 23rd January, 2024

According to Vivino’s proprietary research, 93% of the people need help while purchasing wine. Heini Zachariassen, CEO and founder of Vivino-a San Francisco-based company, realized this problem in 2010. Casual wine drinkers felt overwhelmed with the options of wine available in the market and relied on the advice of seasoned wine connoisseurs to tackle this challenge to make selection easier.

Seeing the growing trend and popularity of mobile apps like Yelp and TripAdvisor, it made a lot of sense for Heini to have a similar platform for wines as well. That’s when Vivino was launched, to turn a smartphone into a perfect partner in wine. The idea was to fill the gaps in people’s knowledge and accessibility of wine. 

By simply scanning a wine label, users could get information such as the price, where they can buy the wine, and see how other wine drinkers have rated it. Soon, Vivino revolutionized how people purchased wine across the globe. However, Heini had still higher hopes to go beyond being a mere source of recommendation to evolving Vivino into a full-fledged online wine marketplace.

Table of Contents

• Growth Dynamics of Vivino Marketplace
• Vivino at a Glance
• In a Nutshell: Vivino Business Model Explained
• How Does Vivino Make Money?
• Payment Methods Supported By Vivino
• Geographic Extension Blueprints
• Customer TouchPoints Making Vivino Stand Out
• Vivino’s Attempt to Capitalize on Customer Behaviors and Opportunities
• How to Launch a Wine Marketplace like Vivino
• Final Thoughts
• Frequently Asked Questions

Growth Dynamics of Vivino Marketplace

Vivino burst onto the scene with the aim of becoming the world’s largest wine community. It relied on crowd-sourced data to personalize wine recommendations so people would feel more confident as they made their wine selections. The crowdsourced ratings actually offered a competitive advantage over individual wine experts and helped to scale the company.

However, as their popularity grew, so did their competition. As other similar services began to emerge in the market, Vivino needed to stay ahead of the curve. And, this was the time in 2017 when Vivino was launched as an online wine marketplace, which Heini had in mind since its inception.

Today, it has an ever-growing community of 50 million wine enthusiasts, who turn to the platform for its personalized recommendations, transparent rating system, and expansive selection of wines from more than 700 marketplace partners worldwide. The app is available in 15 different languages to cater to a global audience

Vivino currently has 12.5 million wines listed on its database, which is constantly increasing. As a testament to Vivino’s impact on the wine industry, it was named the 2021 Retailer/Marketplace of the Year by the Wine Enthusiast Magazine. 

Vivino at a Glance

Vivino is a well-renowned wine marketplace where both vendors and buyers can avail of its services. It has achieved remarkable growth since its inception and the numbers given below reflect its success. 

• The app has 425 million labels scanned to date
• Estimated funding of $221 million is raised
• Vivino has 72 million reputable ratings
• The marketplace app has reached a customer base of 50 million since its inception
• Vivino has an annual revenue of $67 million

Last Updated: 29 February, 2024

After a valuation of 134.88 billion in 2024, the global construction equipment rental market is estimated to reach 170.92 billion by 2029. The growth of the market is largely spurred by the increasing demand for cranes, backhoes, excavators and a progressive trend towards automation and telematics. The market has also witnessed the emergence of modern technologies such as digital services for automated service improvements, mapping features and equipment service tracking.  

Renting construction equipment also makes economic sense as it saves not only the cost of buying new equipment but also brings down recurring expenses like labor, maintenance and operational costs. The construction equipment companies carry out all these tasks regularly in order to eke-out long term profit from machinery.

Table of contents

• Business Model of Online Heavy Equipment Rental Marketplace
• Revenue Generation Model of Online Heavy Equipment Rental Business
• Major Types of Heavy Construction Equipment Rental Machinery
• Key Differentiators of Heavy Equipment Rental Industry
• The Rise of Online Construction Equipment Rental
• Major Players Heavy Equipment Rental Industry
• Gearflow & Machinfo – New Entrants
• Feature To Have In an Equipment Rental Software
• Final Words
• FAQs

Business Model of Online Heavy Equipment Rental Marketplace

An online heavy equipment rental marketplace is based on the collaboration of dealers, original equipment manufacturers and individual spare part owners. Collectively known as vendors, they list their assets on the website to receive rental requests from construction companies or individuals.

As soon as the rentee places an equipment rental request, the money is transferred to the platform owner’s account. Once the vendor accepts the request, the money is transferred to his/her account with the stipulated commision deduction. Furthermore, a security deposit is kept in the admin’s account, which is refunded to the rentee’s account once the equipment is returned safely.

Subsequently, the requested equipment is dispatched by the vendor at the specified delivery address. To safeguard against any damages or accidents, there could be a provision to verify listings with necessary insurance coverage.

Revenue Generation Model of Online Heavy Equipment Rental Business

An equipment rental business has a wide-range of revenue generation channels at its disposal. From the outset, the platform owner can list his/her own equipment, much like the other vendors on the platform and earn money in the form of rent. Curiously, since the vendor is also the platform owner in this case, the transaction carries no commission charges. These are the other revenue generation channels described;

1. Commission – The owner earns a commission on every transaction that takes place on the platform.

2. Advertising – The owner can host various advertisers to display their ad copies on the platform. The advertising cost can be decided on the basis of number of clicks/views.

3. Featured Listing – The owner can invite vendors to list their equipment on the main focus spots of the websites, such as the homepage or a ‘Featured Equipment’ section. This should be a premium feature to generate competition on the platform and earn a decent amount of returns at the same time.

4. Subscriptions –The owner can create certain subscription plans with added benefits such as reduced delivery charges, flat discounts, or even special equipment verification for maximum quality assurance.

Finally, the platform can also offer an option for equipment selling, which will open another revenue generation channel in the form of commission.

Major Types of Heavy Construction Equipment Machinery

At a broader level, heavy equipment or heavy machinery is a term that’s commonly used to refer to heavy-duty machines that are deployed in construction, forestry, mining and agriculture industries. Their application primarily involves moving earth and other large materials but also extends to activities like drilling, lifting, grading, paving, suction and compaction. Following is a list of 10 of the most commonly used construction and earth moving heavy equipment:

• Excavators
• Backhoe
• Bulldozers
• Motor Graders
• Material Handling
• Telehandlers
• Dump Trucks
• Loaders
• Tower Cranes
• Concrete Equipment

Key Differentiators of Heavy Equipment Rental Industry

A combination of different factors are responsible for driving the construction equipment rental trend. Following are the most notable ones:

1. No Upfront Cost

Purchasing any heavy construction equipment such as an excavator, telehandler or a tracked dozer is a massive capital investment. It requires careful pre-planning since the returns can take more than a year to materialize. The money remains tied up within the equipment until you sell it. But if the equipment is kept and used for a long time, the resale value goes down. Rental offers the perfect solution in this situation. It eliminates the need for a capital investment upfront that a business could divert towards its upkeep or pursue other undertakings.

2. Avoid Storage, Transport Costs

The purchase of any heavy construction equipment brings with it the additional requirement of storage space. It’s undesirable to leave new and expensive equipment under the sun all day long, lashing rains and blustery winds. Continuous exposure to the elements causes incremental damage to the machine. There’s no escaping the fact that space is expensive irrespective of the location and the purpose it serves. That’s where Rental proves most effective as it virtually eliminates the need for long-term storage.

Moving on, rental also simplifies the logistics and transportation of equipment from one site to another. Since both the delivery and pickup are managed by the rental service, the business has little to worry about in the way of organizing and streamlining of operations. In fact, processes whose dependence rests on the timely delivery of equipment at the right place are made more efficient through rental.

3. Save at Tax Time

A number of factors impact a business’s tax return but the simple fact is that compared to purchased equipment, which is taxed at a depreciated rate throughout its lifetime, rental equipment is counted as a deductible expense. It’s not that much of a secret that rental expenses are financially flexible than the major, capital intensive purchases. In many cases, they’re seen as part of project expense and can offer tax-saving benefits owing to the nature of certain businesses.

4.  Sharpen Your Competitive Edge

Smaller players in the market always have this fear of being outweighed and out-competed by bigger companies who generally have access to the latest and most technologically advanced machines. But with equipment rental, the smaller players can easily procure the same kind of equipment necessary to take on big and enterprising projects. No more do they have to face rejection by clients due to lack of access to a diverse, efficient and compliant fleet of machines generally associated with bigger companies.

The Rise of Online Construction Equipment Rental

The impact of modern technology can be felt right across the rental market segment. Its most standout benefit is safety. Operators these days can get detailed knowledge about the state of the machinery and carry out their job with relative ease. But it’s important to note that technology also makes equipment expensive. This is perhaps the biggest factor in the growing trend of online construction equipment rental. Instead of making a huge capital investment, renting allows operators to employ the new technology on an ad hoc basis. Following are the major factors contributing to the rise of online construction equipment rental.

1. A Fragmented Industry

The heavy equipment industry is highly fragmented. 25% of the market is owned by the top five firms, while the next top five own the 8%. The remaining 2/3rd is shared by some 2500 firms. The easy domination of the major players acts as an insurmountable barrier to evolution in the industry’s strategies and practices.

2. Transparency & Centralized Management

While technology continues to pervade all the major industries around the world, its role is still quite limited in the oil industry. Technology’s absence creates a chain reaction where there is no transparency, which results in low-quality service that finally culminates in a large number of dissatisfied customers.

Up until recently, it was tough to keep track of when the order was dispatched and where it was in transit. But online platforms such as Uber for taxi-booking and Food panda for food-ordering have given us a glimpse of what order management and tracking should like. As such, people have come to expect a similar experience in the heavy equipment rental industry where technology adoption has been relatively slower.

3. Yard Expansion

Through an online network, businesses can rapidly increase their rental yards to meet their clients’ demands all without owning any of the equipment or yards themselves. On average, a large construction equipment rental company owns approximately 900 yards. This is dwarfed by BigRentz – an online construction equipment rental business whose network spans some 7,500 rental yards. This is the power of an online platform – it connects the suppliers and consumers of a given service and simplifies transactions.

4. Rating & Review System

Through an online platform, one can offer all kinds of equipment for rental such as scissor lifts, forklifts, boom lifts, excavators and so on. It acts as a single point of contact with a self-service portal. But the benefits don’t just end there. A construction equipment rental software consists of a rating system that allows equipment providers to earn a reputation and rise to the top.

Earlier, purchases were made based on existing relationships or word of mouth which wasn’t always ideal. Now, customers can meet equipment suppliers that can meet their exact requirements and at the same time the supplier benefits from the customer’s feedback.

5. Data-Driven Process

By joining an online equipment rental platform, suppliers are able to tap into an up-to-date, comprehensive data for their target location. This allows them to achieve better inventory utilization, and optimize their supply chain. The ultimately results is an increase in incremental revenue.

The Online Rental Industry Report 2019-2023, further strengthens the case for the growth of online heavy equipment. Approximately $150 million have been invested in new startup ventures in the construction equipment rental businesses.

Major Players In The Online Construction Equipment Rental Industry

There aren’t many online construction equipment rental businesses of note in the GCC region but there are plenty out there in the western world. Following is a list of the leading and most successful online construction equipment businesses:

Gearflow & Machinfo – New Entrants Into The Heavy Equipment Rental Market

While there have been a few new entries in the heavy equipment rental market in the recent past but few have made quite an impact as Gearflow. It’s a construction equipment and parts marketplace of dealers, OEMs and contractors. In October 2019, the company announced that it has raised $1.1M seed funding to support the growth of both its platform and the team. 

It’s worth mentioning that Gearflow’s website is developed using Yo!Rent– the industry-leading online equipment rental software. Machinfo is yet another illustrious B2B heavy & construction equipment rental platform built using Yo!Rent. The platform serves 100+ countries with its vast offering of hundreds of millions of new and used heavy construction equipment.​​

The Yo!Rent team has recently released the V3 version, which incorporates dedicated features and functionalities to streamline various operations in a heavy equipment rental business. You can check out the live demos or you can also request for a free personalized demo by a dedicated expert to answer all your queries.

Feature To Have In an Equipment Rental Software

The primary reason why traditional businesses adopt the digital solutions for management is to bring efficiency, clarity and organization across all operations and processes. While there are numerous rental equipment software on the market, it’s essential that business owners check their overall compatibility and various operations modules to ascertain their effectiveness and utility in the long run. At the very least, an equipment rental software should offer the following features: 

Account Management

Accounting is a core operation in any form of business. As such your equipment rental software should include a module dedicated to keep tabs on your accounting side of the business, which includes expense tracking, revenue with general ledger, search invoices using any criteria, and even track equipment rental business depreciation. . The software should also be able to create detailed reports for account payable and accounts receivable. Additionally, it should allow you to maintain a comprehensive vendor master profile with vendor’s contacts, addresses, tax ID number and orders’ information. 

Inventory Management

Your equipment rental software should offer a robust inventory management module to help you or the registered vendors/partners on your platform understand how many assets they currently have, how safe they are to use(depreciation) and how well or not they’re paying off. Eventually, inventory management affects the customer satisfaction levels.

RFQ Management

Another advantageous feature to have on your equipment rental platform is Request For Quote(RFQ). This allows contractors/companies(end-users) to request any vendors for price quotes or bids for their specific requirements. Since the RFQ format is uniform

Since the RFQ format is uniform on a given platform, it’s much easier for end users to compare them once they do return with the price quotes. This facilitates the decision making process, as the user can proceed with the vendor that’s offering them the lowest bid while meeting the minimum qualifying criteria.

Reporting & Data Analytics

For an equipment rental business it’s crucial to make the right decisions at the right time. That’s possible when you have access to real-time and relevant data. An equipment rental software should be able to utilize raw data to create meaningful information. A smart analytics view should give you insights into key metrics like revenue, rental time/dollar utilization, equipment value, utilization, depreciation, profit/loss, operational expenses and much more.

Asset/Equipment Management

For rental companies/players, their equipment is simply the direct source of their income. An equipment rental software should enable you to maintain and control the whole asset lifecycle from purchase, depreciation, revaluation and disposal. Additionally, it should allow you to manage maintenance schedules and insurance along with account integration. This way you’ll have the most accurate equipment information at all times. 

Agreement Management & e-sign

Contract management is something that should be essential in any equipment rental software given the definitive shift towards adoption of digital document and e-Sign technologies. Digital contract management slashes the unnecessary time, cost and security risk associated with manual paper documents which need to be printed, mailed, tracked and followed up for acceptance and signature. 

Some other features that can add value and streamline equipment rental business operations online are as follows:

• Equipment inspection
• Tiered Pricing
• Document Verification
• RFQ Management
• Late Return Module
• Asset tagging and GPS tracking
• Availability Schedule
• Add-On Services Module
• Employee Management
• Tax Management
• Order Management & Tracking

Final Thoughts

It’s fair to say that online construction equipment rental is still an emerging niche that has a long journey to realize its full potential. But a combination of factors such as an increasing demand for equipment rental, the immense profit-making potential and the impact of modern technology are all precipitating its growth and appeal to the entrepreneurs.

If you’re planning to build a construction equipment rental platform, then Yo!Rent is an ideal rental market solution for it. With hundreds of successfully launched websites, Yo!Rent is fast becoming the go-to market solution for building an online rental marketplace for an array of businesses. Yo!Rent is a highly customizable and scalable rental marketplace software that allows businesses to meet their ever-expanding and diverse requirements.

FAQs

Q1. What are the benefits of using a Heavy Equipment Rental Software?
There are several advantages of going digital with a heavy equipment rental software:

• Automation: The first and foremost benefit is the automation of repetitive tasks such as inventory, invoicing, alerts & notifications, and internal communication. 
• Increases Productivity: With business automation, business operations get faster and your employees can spend time on more important tasks, bringing an increase in productivity. 
• Elimination of Manual Errors:  Due to heavy equipment rental software, the scope of manual  errors is significantly reduced, making the entire rental experience more efficient for both customers and business owners.
• Enhanced Customer Experience:  With each and every function automated, customers can find everything they need at one place without requiring to personally reach out to business.
• Reduced Expenses: With automation and elimination of manual errors, business expenses on overall management are also reduced.

Q2. How to select the best Heavy Equipment Rental Software for construction equipment business?
Business owners need to keep in mind several things to find the most appropriate heavy equipment rental software for their business:

• Scalability:  If you are looking to expand your construction equipment rental business, then it is  best to go with a highly-scalable software that supports unlimited transactions, listings and user profiles.
• Hosted vs Self-Hosted: If you will be handling important documents as well then go forward with self-hosted software. You might need to select and pay separately for a hosting but you will also get the choice to select a faster and more secure server. On the other hand, you can select a hosted software but your platform will be hosted on a common server with hundreds of other websites.
• Customizable: Analyze your feature requirements and prepare a list. Evaluate this list with the available features to check if all your requirements are met. If they are not met or you have some advanced requirements that are not available in any ready-made software, then your heavy equipment rental software should also be fully customizable to support those requirements. 
• Demo and Customer Support: Before purchasing the software, the software provider should also provide you product demos. It is in these demos only that you can review the functionality of the software. Similarly, post-deployment, the software provider should also provide business owners with ample customer support to resolve any unexpected bugs and issues.

Q3. How long will it take to launch a heavy equipment rental website with ready-made software?
The launch time for you online heavy equipment rental store depends on three factors:

• Customizations required: If there are some customizations required in the software to materialize your heavy equipment rental business idea, then the launch period can be long.
• Third Party Integrations: In case if you also want to add any plugins or third-party integrations, then you will also need to wait a while for the launch. The integration time varies from plugin to plugin. While some TPIs are easy to add, others can be very complex. On this matter, your software provider can guide you more accurately.
• Hosted vs Self-Hosted Solutions: The majority of hosted software like equipment rental website builders can be deployed within 1-3 days. In contrast, self-hosted software can take up to 3-7 days.

A business idea for a product is formed based on assumptions. There may be market research involved during the conceptualization stage but the entire product would still be engineered without the involvement of the end user. But, the success of the entire project depends upon how the product serves the needs of the user.

What if – there is a way to involve the end-user in the product development stage and get validation of assumptions. The product would thus be tailored with those learnings, increasing the chances of its success.

MVP or a Minimum Viable Product is a product that is sufficiently viable at the earliest possible stage of development. It is an iteration of the final product with a minimum set of features. It can be used to gain valuable insights on the product before completion of the entire project or audition the business plan. In either of the two scenarios, MVP first strategy brings in multiple benefits.

In this blog on top MVP development companies for startups, let us first examine what benefits an MVP offer and why they are so critically important to a business.

Key Benefits of MVP Development

“The ability to learn faster from customers is the essential competitive advantage that startups must possess.”

— Eric Ries, author of “The Lean Startup”

MVP focuses on gaining learnings in the development process, rather than utilizing all resources and going in for a big-bang launch.

When an MVP is made available to clients, it enables them to judge the assumptions in the project in nascent stages of development. This further enables them to determine the business sense in the assumptions and reduce risk. If need be, the business strategy can be reworked. Discussed hereunder are the benefits that MVP-first business strategy brings to the table.

MVP reduces risk, saves working capital

The biggest benefit of MVP is that it saves working capital being squandered away by acquiring crucial information before the product is finalized, marketed, and launched in the market.

MVP is used to pitch a business idea or market it

The MVP can also be used to demonstrate the relevance and capabilities of a project. This can be done for all the stakeholders involved in the project. Businesses can pitch the potential of the business idea to investors. Similarly, MVP can also be used as a part of marketing strategy.

MVP reveals the way forward

The data collected reveals the path to be taken for the development of the product for the business. Additionally, if need be, the data can help the business to modify its business model or the modus operandi of the business.

MVP helps to build a customer-centric product

The feedback received also lets the business prioritize the most significant core functionalities from the customer’s point of view during the initial stages of development. This would help to develop a project that is customer-friendly.

Stay updated with current market trends

The requirements of the product may fundamentally change from the time you conceive the project to the time you commence with the launch of the finalized product in the market. This is true especially for dynamic markets where the competition is stiff. MVP can give you that critical feedback about the recent and previously unforeseen developments in the market.

MVP aids better planning

MVP lets you focus on a milestone before the project is finalized. This helps to break the development of the project down into two parts. This aids in the planning of the project from the business perspective as well.

List of Top MVP Development Companies

Software development is a tedious process that requires experience, expertise, and the ability to deliver in exact accordance with the project needs.

The hallmarks of the best software company are reliability, a customer-centric approach, a proven track record, and an ability to deliver a well-engineered and bug-free product meeting all the requirements of the clients.

This is the reason why you should trust only the best in the business. Listed below are the top MVP software development companies.

1. FATbit Technologies

FATbit Technologies is a leading software development company that is built on the ethos of customer service. It takes pride in delivering high-quality and well-designed minimum viable products (MVPs) as well as software solutions with extensive customizations and integrations. Established in 2004, it has an experienced and highly proficient team of 200+ professionals.

The company provides an array of services that include MVP software development, mobile-first and responsive web solutions with intuitive UX/UI designs, data-driven marketing solutions, mobile application development conforming to the latest in technology and business consultation amongst others.

FATbit offers flexible, robust and scalable turnkey eCommerce software suitable for most markets like retail, food and groceries, online rental, e-learning, ride-hailing, and more. Additionally, the company offers full customization over these eCommerce solutions.

The company values long-term customer relationships. It boasts of a diverse portfolio of services delivered to esteemed clients from all over the world. UNI Diamonds is a fine example of exemplary design, a distinctive UI and an inclusive UX. It is developed via a collaborative effort with the client, achieved via Agile practices of FATbit. The company was able to deliver on the client’s exact requirements.

2. Classic Informatics.

Classic Informatics offers custom software development and scalable digital products for startups and enterprises. The company also offers Digital commerce solutions to build online stores. Additionally, it offers inbound marketing solutions, MVP development and content management systems. The company implements a wide array of technologies and platforms to deliver high quality products

3. Intelivita

Having a global experience, Intelivita offers mobile app development, MVP development, AR and VR services. The company focuses on delivering a custom product based on the client’s needs. They implement a stepwise approach to their services, implementing AR and VR for a futuristic and aesthetically pleasing user experience.

4. UIG Studio

UIG studio focuses on the human element in mobile application development resulting in an inclusive UI and UX of the apps and MVP software they develop. They offer full cycle product development to companies of all sizes. It implements a cross team involvement to maximize innovation of their products. Apart from mobile apps and MVP development, the company also develops GIS software. They initiate each project by a discussion with the client over the objective of the project to get the desired results.

5. Digiteum

Digiteum is an MVP development agency. It offers web, mobile, and IoT development. Additionally, they implement AI and chatbots into their software solutions. They implement a broad tech stack into their projects. The company offers time bound project completion with an early start and quick responses to any changes that may be required. The company caters to clients from all over the world.

6. Confianz

Confianz which is a derivative of the word “Confianza” or trust in spanish. The company offers competitively priced and scalable products to SMB’s It builds end-to-end integrated solutions for clients. The company builds mobile applications for both Android and iOS, offers web development services and ERP solutions to enterprises. Confianz has clients in over 50 countries.

7. Net Solutions

Net solutions offers bespoke products and platforms engineered to provide a better user experience.The MVP development company looks to enhance the customer base for their client through better customer experience of its products. It uses around 30 technology products and offers services. The company created the first of its kind mobile monitoring platform that provides 3600 of the entire organization. It uses an agile methodology to produce applications for web and mobile.

8. WebbyLab

WebbyLab is a full-service software development company that specializes in creating custom web and mobile applications. They offer a wide range of services, including web design, mobile app development, Iot development, UX/UI design, and more. They have a team of experienced developers who are dedicated to delivering high-quality solutions that meet the needs of their clients.

9. Amplework

Amplework provides MVP solutions for mobiles, Web, VR, IoT, and wearables. Amplework is one of two companies on this list that has worked with clients from the education sector. The company focuses on delivering products keeping in context the human element. Apart from that the company lays emphasis on the quality and performance of its products. It documents the code delivered to you. It also offers continuous product development and maintenance services.

10. Reinvently

Based out of Palo Alto CA, Reinvently, an MVP development company, that offers to assist businesses in their digital transformation through scalable mobile apps and IoT experiences.It also provides a mobile based MVP with focus on user experience to enhance the customer base of the client. Nugs.net is an example of a live music streaming app that the company has developed for both iOS and Android platforms.

11. Bacancy Technology

Bacancy Technology offers mobile and web-based solutions through collaborative effort achieved through implementation of Agile. The company also offers solutions that leverage blockchain technology. It also employs all major technologies in the development of its products. The company has 9 offices in 6 countries with 500+ professionals working for them, thus it offers services to clients from all time zones. The company has experience working with multiple Fortune 500 clients.

12. DevSquad

DevSquad is an MVP development company. The company offers services for UI/UX design; MVP, SaaS and  API development. It strives to develop innovative products for its clients. The company prioritizes testing the product sufficiently before delivering. The product development of the company is well managed by focusing its resources towards every single project.

13. Dashbouquet Development

Dash BOUQUET uses machine learning to build minimum viable products for the clients. The company utilizes a wide variety of libraries and frameworks to design the products for the clients. Apart from MVP development, the company also offers mobile and web development services for startups.

14. Mobisoft Infotech

Mobisoft Infotech is an MVP development company. It offers services for mobile application development, web development, Cloud, UI/UX services, blockchain and IoT development. It has worked with leading brands from around 35 countries across multiple sectors. It looks to deliver innovative and transformative products through technology adoption.

15. Monterail

Monterail categorizes itself as a full-service software development company. It has been listed in the top 1000 companies by Clutch. It utilizes a range of modern technologies including Ruby on Rails and Javascript. The company has a balanced portfolio with on mobile app development amongst others.

16. ScienceSoft

ScienceSoft offers software development services to cater to all OS and browsers. Apart from mobile and web development the company also offers IT consulting, Data analytics and cybersecurity services and software solutions such as CRM, ERP and eCommerce solutions. The company provides solutions for the complete IT ecosystem for both cloud based and on premise solutions. It provides innovative solutions with the latest tech trends. The company has worked with clients from multiple sectors.

17. Oyelabs

Oyelabs is a custom software development company. It offers services for mobile and web development, blockchain, IoT, machine learning and MVP development. Additionally, it also specializes in idea prototyping. It offers robust, client focused and data driven products.

18. Smart IT

Smart-IT is an MVP development company with focus on custom software development and application management and support.The company also offers its software development team to work alongside the client’s It also offers IT consulting services and MVP development. The company has worked for clients from FIntech, healthcare, insurance sectors among others. The company makes the most of modern technologies to power the ideas of its clients.

19. Appinventiv

Appinventiv strives relentlessly to provide innovative and high quality products. It offers full transparency in its services. The company provides a skilled full stack team for hire. It also facilitates full cycle product development. Appinventiv is one of two companies on this list that has worked with clients from the education sector.

20. Innovify

Innovify derives its name from the word “innovate” and that is what the company strives to achieve via a collaborative effort with the client. It offers custom software development, mobile app development, IT consultations services to startups, SMEs, and enterprises. It facilitates end to end digital innovation and product development services.

21. eSparkbiz Technologies Private Limited

A web and mobile application development company, eSparkbiz offers its services to businesses of all sizes. The company offers MVP development services using Agile practices to drive value to its clients’ projects.  Additionally, eSparkBiz provides front-end development, Hubspot COS development, and software development services. The company also provides development teams for hire.
eSparkBiz employs a good range of technologies to deliver cost-effective solutions for its clients.

Conclusion

As per our analysis, we found the above mentioned companies are the best for MVP development. There may be many companies doing better than above-mentioned, but we created this list after extensive research considering pricing, services, user reviews, Clutch rating, trust, and ranking on Google.

If you have the name of any MVP development company in mind that we missed here, please do share it with us through the comment section, we will be happy to see your suggestion. The companies in this list are among the most reputed globally but we recommend you to do a quick analysis at your end before hiring the one for MVP development.

Suggested Read: Top Custom Software Development Companies

FAQs

What is MVP in development?

Minimum Viable Product or MVP is the iteration of the final product with minimum requisite features that helps a business to acquire validated learnings before the final product is launched in the market. 

Why is MVP important?

MVP can help gain crucial insights about the final product from the end-user. It does so with minimum costs involved. These validated learnings helps for a data-driven approach in product development, reducing risk, and maximizing chances of success.
Additionally, MVP may also be used as a marketing strategy to pitch your business idea to the investors or the customers. 

What are the MVP stages in business?

MVP stage in a business is the first saleable iteration of the final product. It is the version that has minimum requisite feature-set that can be used as an MVP. 

What is MVP in Agile project management?

MVP is critical to companies following Agile Project Management as it provides crucial client feedback, key to the iterative and incremental development practices followed in Agile Practices. 

What Is The Need To Build An MVP for Startups?

An MVP will help test market assumptions,  minimize risk, and fasten project development with validated learnings.
These benefits can prove to be critical for a startup, especially if the startup is considering implementing a disruptive and experimentative business plan.

Post Updated On: 27th December, 2023

Technology companies have been busy lately developing software to hire professionals online. Cab booking services and food ordering portals are some of the popular examples. Most recent are online marketplaces to hire local professionals for jobs like house painting, home cleaning, plumbing, and more. These marketplaces are referred to as on-demand services marketplaces.

In no time, these on-demand service marketplaces with unique features have made their mark by gaining huge popularity and building a reasonably good customer base. Seeing its rising popularity, FATbit’s team of analysts conducted thorough research of the growing industry and gathered critical business insights for entrepreneurs planning to launch a similar portal.

Business Flow of an On-demand Services Marketplace

An on-demand service platform connects service seekers and providers. The flow of such a marketplace is illustrated below:

Possible Revenue Streams of an On-demand Services Business

There are several revenue streams of an on-demand services business. However, zeroing in on a couple of them which are sustainable and help businesses scale is essential. Some of the possible revenue streams are explained below:

Potential Niches in the On-demand Services Industry

The on-demand services industry is further divided into various niches. On a marketplace platform, you can aggregate services from each of these niches. Alternatively, depending on the market demand in your targeted geographic region, you can launch a dedicated on-demand service platform for a particular niche as well.

Electrical

Electricians can increase their sales by listing their services on an on-demand electrical services platform and delivering their services to customer homes and business locations.

Plumbing Services

To save clients running around a plumber in their neighborhood, an on-demand plumbing services platform helps them find and book a plumber in minutes.

HVAC

As with other on-demand services, an HVAC services platform connects HVAC services providers to customers looking for them. Customers can find as well as book a visit from HVAC services providers. 

Pest Control Services

Every homeowner takes regular pesticide control as pests pose real threats to health and damage property. An on-demand pest control services platform acts as a one-stop destination for homeowners to find all sorts of pest control services.

Cleaning Services

On-demand cleaning services for the ones who struggle hard to keep their house clean and hire maids or housekeepers for the same. 

Appliance Repair Services

Customers prefer booking and delivery of services at their doorstep which has brought a lot of popularity to on-demand appliance repair services. 

Landscaping Services

Keeping the yard, lawn, and landscaping maintained has never been so easy with the fleet of local and professional on-demand landscaping services. 

Locksmith Services

On-demand professional locksmith services are in great demand due to residential locks, commercial locks, key duplication, automotive key programming, and lock for security surveillance.

Roofing Services

On-demand roofing services are getting popular for a variety of uses like emergency services, snow removal, small scope construction projects, warranty program, etc.

Top On-demand Services Marketplaces

Things to Consider While Starting an On-demand Services Business

While the glaring success of the on-demand market worked for many businesses, the businesses that failed are also extremely huge in number. Below given are a few factors to consider when building your on-demand business and making it a success.

Market Expansion

On-demand businesses today refrain from expanding their market reach and end up being limited to a pool of loyal customers. The problem arises as soon as a new competitor with huge capital enters the market and starts expanding. The chances of them getting out of the business increase with the increasing number of competitors.

Alternate Financing Options in Place

It is extremely unwise to be dependent on funding to launch and sustain your on-demand business. No matter how well-propositioned your business model is, there is no guarantee of your on-demand business getting funded. It is better if the entrepreneurs look into alternative financing options like partner financing, invoice advances, crowdfunding, marketplace lending, revenue-based financing, etc., and not remain limited to venture capital.

Focus on Customers’ Needs

As many successful on-demand businesses have set the benchmark high, the modern customers’ expectations have also risen. Some key traits are:

• 24*7 availability
• Personalized experience
• Quick turnaround time
• Cater to the exact customer needs

Take a look at these points and identify which of these relate to your business. These points can highlight where your business can improve the customer experience by focusing on the needs of your customers.

Trends Transforming the On-demand Services Industry

Here is a look at trends that are being formed and lay the foundation for the future of the on-demand services industry.

Adoption in a Wide Range of Industries

As people are getting used to on-demand service platform, they are also looking to take advantage of more on-demand services in other industries. Moreover, becoming more ubiquitous signifies branching out to serve new industries and sectors. As a result, the on-demand economy is going to see an increase in its workforce in the coming years.

Skilled and Qualified Service Providers

So far, most of the on-demand services like cleaning, ride-hailing, food delivery, etc. did not require a special skill set or expertise, However, the growing number of service providers and niches will also require skilled and qualified service providers with relevant experience to join the workforce. Some of the examples are medicine and health care services that are becoming popular and require service providers to be skilled and experienced.

Quality Services at Consumer’s Convenience

As the number of businesses and service providers is increasing in numbers and competition is rising every day, service providers need to offer quality services at reasonable prices. The hike in the number of service providers has forced them to offer the premium services at customers’ convenience or lose a potential customer.

Necessary Background Checks

As the penetration of on-demand services increases and more people face legal issues, there will be an increased demand for background checks. Customers are hesitant to use the services if there are no background checks for the service providers. On-demand business owners should consider this to build and maintain the trust of the customers.

Business Intelligence and Analytics

As the competition in the on-demand services industry is roaring high, businesses will not be able to thrive without Data Mining and Business Analytics. These can give valuable insights into the services which are in demand. Business intelligence and analytics will help to find out the demographics of the users, whether the marketing strategies are performing well or not, and what can be done in order to streamline the business.

Building an On-demand Services Marketplace

Launching an On-demand marketplace platform is an opportunity to tap into this growing industry, however, rushing to launch a platform as fast as possible with a vague idea about the target market and business model can sink your business before it even establishes. A well-thought business strategy is a solid foundation, not only for the business but for the technical aspect as well.

Here is what you need to do when building an on-demand services marketplace.

Choose a Niche

The untapped potential of your business can go far beyond the expectations with the niches we mentioned above. Keep multiple options open for your business and refrain from the niches where other players are already doing good. Find a unique niche that actually helps the users make their lives better.

Define Customers’ Needs

While exploring the market, find out answers to a couple of questions:

• What is the audience’s age and social status?
• What are their daily challenges?
• How can your business help them solve their problems?
• What are the expectations of service providers?

Build a user persona that can greatly help you define your potential customer’s needs and enable you to fulfill them.

Analyze Market Competitors

Prepare a list of your competitors, irrespective of the fact whether they work in a similar niche or have a slightly different market. Take a closer look at their business, and try to find out insights into their business, like:

• Specialization
• USPs
• Weaknesses

Analyzing all these factors, you will be able to detect the elements their business is missing. You can then use this missing element to strengthen your business and make your business one of a kind.

Pick a Monetization Strategy

Finding the right pricing strategy is the top priority for any business. Your pricing strategy should not seem suspicious or disadvantageous for users. The most hazardous strategy is pricing the customers too high which can make you incapable of meeting the competition and undermine all the efforts taken to build the business. They should clearly realize what they are getting against their money. 

Decide on the Features

An on-demand app service delivery website will need to have different features for all the different users – admin, service provider, and customer. Have a thorough research of your market and audience and then decide on the features you will be needing in your website.

Attracting Customers for Your On-demand Services Marketplace

Studies and reports clearly portray that the on-demand services market is expanding and there is an unconfined inclination towards this economy. However, not many businesses make it big in the market and their efforts go in vain. The primary reason is the lack of proper marketing.

Rather than going rounds across the problem, let’s discuss how on-demand businesses can attract more customers and increase their revenue.

Strategize Marketing Plan

Building an on-demand platform is not all; businesses need to have a proper strategized marketing funnel to create demand and entice customers. A lot of research is required keeping in mind the target audience and the services being offered before actually launching an on-demand services marketplace.

Gain Trust of Customers

Building a better bond with the audience is always recommended in a business. Organizing webinars, interacting with the audience through different mediums, and sharing sales videos can help businesses gain the trust of and build the authority of their on-demand business.

Conduct Research/Surveys

Proper knowledge of the market is vital in any business, and on-demand businesses need it more than any other. It is essential to know the difficulties faced by the potential customers, their requirements, and how can your services help them in solving their problems. On-demand businesses need to carry out these surveys to be on the right track, or else the competitors can grab their potential customers.

Showcase Client Testimonials

Every new customer has this psyche of being doubtful towards a new company. However, if they see another customer sharing positive feedback, they are easily convinced of the services/products. On-demand businesses need to make sure they allow their customers to share their experience (video, picture, written) which will serve as a testimony of their quality and attract new customers.

Offer Lucrative Discounts

Another effective strategy to gain more customers is to provide enticing offers and discounts which can attract existing as well as new customers. The only thing to consider while offering discounts is that these offers should be realistic and do not cost much, or else they can backfire.

Build an On-demand Services Marketplace with Yo!Gigs

For a remarkable amount of time, Yo!Gigs has been helping entrepreneurs to build an on-demand services marketplace. The software comes with a multitude of features to aid in the development of a rich services marketplace. The software is readymade and reasonably priced for building a services marketplace.

An on-demand services marketplace armed with the features Yo!Gigs offers is undoubtedly going to rule the market.

FAQs

Q1. What is the best solution to start an on-demand service marketplace platform?

Ans: For on-demand marketplace operations, Yo!Gigs is a highly recommended solution. It comes with a wide range of essential features to simplify all types of on-demand service operations. Furthermore, it also supports direct hiring, job posting, and bidding to provide customers with diverse hiring options. 

To ensure quality services and establish trust in consumers, the marketplace owner gets the background checklist and verification badge features. For managing service providers, Yo!Gigs has modules such as user management, commission management, withdrawal settings, eWallet, advance deposit, etc.

To view Yo!Gigs in action, schedule a free personalized one-on-one demo session here.

Q2. What is the cost of developing an on-demand service marketplace platform?

Ans: The cost of developing an on-demand service marketplace varies on the development method. Via the custom development method, you would be paying between $25-100 per hour to develop your marketplace platform. If it takes 1000 hours to develop the marketplace, then your overall custom development cost will be somewhere between $25,000 – $100,000. On the other hand, by using a readymade solution, you can reduce the overall cost to $1000-$5000. This is possible as the solution has been already developed by the software provider and you are only purchasing a license for the software.

Updated On: 1st March 2023

With the incorporation of latest technologies, artificial intelligence, and machine learning, the healthcare industry has transformed tremendously over the last few years. This transformation has improved the entire healthcare experience for both patients as well as medical professionals by providing operational efficiency and improved patient care. 

According to a survey, one out of two patients reported the use of healthcare consultation apps on their mobile devices. The primary reasons behind such behavior of patients are access to the consultation of more than one medical professional, the reduced hassle of traveling and waiting in long queues, and the ease of use. As technology continues to advance and demand for online doctor consultation platforms rises, there has never been a better time to build a platform that connects healthcare professionals with patients. 

Whether you are a healthcare professional or an entrepreneur interested in entering the online healthcare industry, building an online doctor consultation platform can be a rewarding experience. Further, in this blog, we provide you the information on how to build a successful online doctor consultation platform. From understanding the business model and identifying the right set of features, we will cover everything you need to know. 

Table of Contents:

• Is it The Right Time to Start an Online Doctor Consultation Platform?
• Benefits of Starting an Online Doctor Consultation Platform
• How to Start an Online Doctor Consultation Business?
• Popular Online Doctor Consultation Platforms
• Business Model of an Online Doctor Consultation Platform
• Revenue Model of an Online Doctor Consultation Platform
• Essential Features of an Online Doctor Consultation Platform
• Other Recommended Features for an Online Doctor Consultation Platform
• Conclusion

Is it The Right Time to Start an Online Doctor Consultation Platform?

Considering the current scenario, experts are expecting a tremendous increase in the demand for online doctor consultation platforms. Some of the reasons why now is the right time to start an online doctor consultation platform are: 

• Increased Demand: The online doctor consultation industry is valued at $25.1 billion in 2023, and is expected to reach a market value of $35.5 billion by 2027 growing at a CAGR of 8.76% in the forecast period (2023-2027). We anticipate that demand for online doctor consultation platforms is rising and will continue to increase in the coming years, providing numerous lucrative opportunities for budding entrepreneurs. 
• Connect Globally: With an online doctor consultation platform, you can connect patients and doctors regardless of the geographical barrier. Consequently, increasing the reach and revenue of your platform. Additionally, online consultation platforms make it easy for patients to leverage the expertise of specialists unavailable locally.
• Cost-Effective And Time-Saving: Starting an online doctor consultation platform is more cost-effective and time-saving as compared to building a full-fledged hospital with all facilities and infrastructure. 

Benefits of Starting an Online Doctor Consultation Platform

Online doctor consultation platforms efficiently bridge the gap between patients and healthcare professionals. The growing popularity of online doctor consultation platforms can also be attributed to the fact that it offers endless benefits to doctors as well as patients.  Some of the benefits offered are-

Benefits of online doctor consultation platform for doctors:

• Expanded global reach: Doctors can provide their medical advice and services to patients globally, breaking all geographical barriers. 
• Increased revenue: Online consultation platforms offer additional revenue streams for doctors like they can sell ebooks, and medical learning material to their patients. Additionally, doctors can refer services of other healthcare professionals such as specialists, diagnostic centers, or labs by charging money in return. Such lucrative revenue opportunities may not be possible in an offline setting.
• Flexibility: With an online doctor consultation platform, doctors have the flexibility to choose their schedules, set their own rates, and work from any location. 
• Efficient time management: Doctors can efficiently manage their time with an online consultation platform. They can attend to patients without dealing with the hassles of managing administrative tasks, waiting rooms, etc.
• Better patient management: Online doctor consultation platforms enable doctors to manage their patients more efficiently. They can access their medical history and records, track their progress, and follow up when needed. 
• Genuine feedback: Patients can provide feedback in the form of ratings and reviews for the doctors which will eventually help them in improving their services. 
• Improved patient satisfaction: Online doctor consultation platforms are more convenient and accessible for patients, hence, offering more customer satisfaction. Patients can easily manage their appointments avoiding the need to travel to the clinic. Satisfied patients mean more referrals, which translates to more patients coming in for your services. 
• Better work-life balance: Doctors can achieve a better work-life balance with an online consultation platform. They can work from home or any location and can see patients as per their schedule and convenience.
• Expert advice: In case of complicated problems or diseases, doctors can seek advice from their fellow senior/expert doctors through online discussion forums or groups.

Benefits of online doctor consultation platform for patients: 

• Convenience: Patients can avail of medical treatment from the comfort of their homes without having to travel to the hospital. This is extremely beneficial for those who live in remote locations or have mobility issues.
• Accessibility: Online doctor consultation platforms provide patients with access to a wide range of doctors, regardless of their location. Patients can easily connect with specialists across the globe depending on their health concerns and condition.
• Time-saving: Individuals with busy schedules or work life can save time who otherwise would have to take time off or spend time traveling to the hospital. 
• Cost-effective: Online consultation is more cost-effective than in-person consultation. They can save money on travel expenses and consultation fees. 
• Better monitoring: With digital reports and prescriptions, doctors can track the progress and monitor their patients more closely and efficiently. This is also beneficial for those suffering from chronic diseases and requires continuous support and care. 
• Increased privacy:  Doctors provide consultation in the privacy of the patient’s own homes, which is beneficial for those who are uncomfortable discussing their health concerns in a hospital setting. Additionally, online consultation platforms keep privacy of their patients at utmost priority by keeping the medical data encrypted and safe. 

Offering and integrating features that can cater to the needs of doctors and patients on your platform will eventually contribute to the growth and success of your online doctor consultation business. 

How to Start an Online Doctor Consultation Business?

Starting an online doctor consultation business may seem like a daunting task, to begin with. However, with the right information and knowledge, this challenge can be overcome easily. In this section, we discuss key things you need to consider while starting your online doctor consultation platform. 

Compliance

To operate an online doctor consultation business, one has to adhere to different rules and regulations. For example, to start an online doctor consultation business in the U.S, compliance with HIPAA is essential, and to operate in Canada, compliance with PHIPA is vital.

Research

It is vital to understand what society needs. Conducting market research will give the basic idea of how to proceed forward and establish an online doctor consultation business. Ideally, one may initiate market research by identifying potential partners and studying the competitors.

Define Unique Value Proposition

To separate a new business from the rest of the crowd depends on how well the unique value propositions are defined. Depending on the value propositions, the user experience, customer service, selection of products and services, and more, will vary.

Create a Prototype

Conducting market research and defining unique value propositions will generate an ample amount of data to create a prototype or a minimum-viable product. The prototype and the number of features one wishes to integrate depend entirely on the budget.

Opt For a Reliable Solution

It is essential to choose a reliable software solution that can streamline the operations of your online doctor consultation business. Yo!Coach is one such popular software solution that offers exemplary features and functionality essential for running an online doctor consultation platform. This comes pre-integrated with popular collaborative tools like video conferencing, text chat, etc. to make communication between doctors and patients effortless on your platform. It also offers multi-lingual and multi-currency features to help you serve your global audience. Learn more

Get Feedback

Once you have launched your platform, consider creating a list of hand-picked users who will gain access to the website or mobile app before everyone else. The feedback of these people matters, and after careful analysis, one may choose to include the learnings on the website or mobile app.

After knowing how to start an online doctor consultation business, the next important thing would be to know about the popular online doctor consultation platforms in the industry.

Popular Online Doctor Consultation Platforms

eGlobalDoctors

eGlobalDoctors is an online doctor consultation platform providing more than 40 medical services in 8+ countries around the world. This platform provides all the features of a hospital at a click of a button. More than 350+ renowned doctors from various medical fields with years of medical practice experience are associated with the platform. This platform generates revenue through commissions, offering subscriptions and various other services like health packages, diet programs, etc.

SteadyMD

SteadyMD connects patients with primary care physicians via video calls, secure messaging, etc. This online medical service provider earns revenue through multiple streams such as subscription fees and others. Its primary revenue stream includes different variations. For instance, they offer separate medical plans for single patients and family members. A one-hour welcome video call is generally scheduled between the patient and the doctor. The purpose of the call is to enable the patient to share his health history with the doctor.

Nexia Wellness

Nexia Wellness is a popular online doctor consultation platform developed by Yo!Coach. This is an online therapy platform that connects individuals with certified health and wellness practitioners They aim to provide an easy and accessible way for users to avail of wellness services such as counseling, fitness coaching, nutrition coaching, therapy, and more. People can search and find a variety of healthcare professionals on the platform. By making online payments they can book their appointments and start their healing journey.

This platform allows flexible communication through video consultation and chat support. Additionally, Nexia Wellness is a highly secured and encrypted platform to protect users’ information and ensure privacy.

Doctor On Demand

Doctor On Demand is a fast and easy way to see a doctor, nurse, practitioner, therapist, or psychiatrist online on your desktop or mobile device. Their licensed doctors have an average of 15+ years of experience. This platform offers services 24/7 and connects doctors with patients in minutes. Unlike other online doctor consultation service providers, Doctor On Demand has no subscription model. There is a flat-rate for those who seek consultation. 

Coupon code management, patient management, etc are some of the features offered by this platform. Doctor On Demand also accepts insurance coverage from a few.

iCliniq

iCliniq covers 80+ specialties ranging from obstetrics, and gynecology to psychiatry, and dermatology. It is a medical second opinion platform where users can get medical advice from certified doctors. Their doctor panel consists of medical practitioners from US, UK, Germany, Singapore, and more. To ensure the highest quality for the patients on the platforms, they verify online doctors’ licenses, qualifications, and experience before listing them on the platform. 

iCliniq generates revenue by charging patients for each consultation. The cost of consultation varies depending on the time for the video consultation, the starting price for a 15-minute video consultation is $79. 

Zocdoc

Zocdoc is an online doctor consultation platform that allows patients to find and book appointments with doctors based on their location, specialty, and insurance plan. After selecting a doctor, patients can view their availability in the calendar and can book an appointment by paying a fee. Patients can make informed choices with verified profiles, reviews, and ratings and can stay on top of important check-ups and appointments with custom reminders. 

The platform earns money from both a listing fee and a booking fee from healthcare providers. The fee is charged in the form of monthly and annual subscriptions.

Therapy Panda 

Launched by Yo!Coach, Therapy Panda is a global platform that connects people with qualified and experienced therapists, psychologists, and counselors. Those seeking therapy can search for the therapist around their personal preference such as price, specialty, therapy approach, availability, nationality, gender, age, rating, and more. Before making a booking, they can even watch videos of therapists to get a better understanding of what to expect from the therapist in the session.

Additionally, this platform is multi-lingual and offers multi-currency features to serve global clientele around the world. Therapy Panda is highly secure for online therapy as it is both HIPAA and GDPR-compliant.

After exploring the key players in the online doctor consultation industry, let’s gain insights on the business and revenue model of an online doctor consultation platform.

Business Model of an Online Doctor Consultation Platform

In an online doctor consultation business model, there are three different types of users. The three types of users are – Platform owner or admin, doctor, and patient.

Platform owner or admin

The admin manages all the operations of an online doctor consultation business. As the owner, he has to take care of everything associated with the platform, including marketing and customer care.

Patient

A patient can schedule an online appointment with a doctor. The conversation can happen over video or text.

Doctor

A separate dashboard is provided for doctors which can be accessed once the doctor successfully completes the sign-up process. A doctor also has management tools to keep track of patients.

The general operational flow is elaborated in the business model diagram below:

Revenue Model of an Online Doctor Consultation Platform

An online doctor consultation platform can generate revenue through multiple sources. Here are some of the popular revenue streams:

Commission

The admin can earn commission behind each appointment scheduled with a doctor. The online payment can come directly to the admin, who can then deduct the commission and send the rest to the doctor. One should consider the payment gateway charges as well before finalizing the commission.

Subscription

Patients can pay a monthly or annual subscription fee to access the platform and connect with the best doctors around the world. 

Partnership Program

The platform can generate revenue by partnering with other healthcare providers (dieticians, nutritionists, etc.) and insurance companies by providing them the opportunity to offer their services through your platform. 

Sponsored Placement

Healthcare professionals can list themselves on different web pages such as the homepage, search listing, and more on your platform. Using this feature, the admin can charge a fee based on time duration and the number of clicks.

Advertisement

The platform can generate revenue by displaying ads to users. In this method, specific space is allocated to different web pages for advertisers. To calculate the advertisement fee, pay per click method can be implemented in your online doctor consultation platform.

The revenue streams should be aligned with your platform’s value proposition, and business goals while ensuring sustainable growth and revenue over time. 

Essential Features of an Online Doctor Consultation Platform

Doctors Detail Page

The details page includes essential information about the doctor. This may include a video introduction, medical qualification, experience in years, language spoken by the doctor, area of expertise, availability, ratings, and review, consultation fee, direct message capability, and more.

Booking and Checkout

Booking and checkout are essential components of an online doctor consultation platform. The booking process should be simple with clear instructions and prompts for patients to follow. Patients should easily be able to cancel or reschedule their appointments. Additionally, the refund and cancellation policy should also be clearly communicated to the patients on the platform. 

Consultation Tools

For an online appointment to be successful, consultation tools play an important role. These tools improve communication between doctors and patients. Relevant tools that enhance the user experience for patients include file sharing, collaborative documents, text chat, text pad, screen sharing, screen recording, etc. 

Matching Filters

Matching filters could be a powerful tool for an online doctor consultation platform to effortlessly match patients and doctors on the platform. This filter allows patients to easily match with doctors based on their specific needs, such as doctors who are specialists in a particular field, speak a specific language, or are of a particular gender.

This efficient and quick matching of doctor and patient can save a lot of time and effort patients will invest in finding a suitable doctor. On the other hand, doctors with specific specializations can easily be found by patients eventually increasing their visibility and attracting more patients. 

Calendar Availability and Scheduling

This feature helps doctors manage their online availability and schedule more efficiently. With a calendar, doctors are able to specify at what time of the day they are available for consultation. Patients can book appointments with doctors as per their availability. This also helps reduce waiting time for patients, hence, improving overall patient satisfaction. 

Reviews and Rating

Reviews and rating helps in building credibility and trust among patients. Patients can provide valuable feedback to doctors based on their experience. Ratings also help patients in making informed decisions regarding their healthcare and whether to choose a particular doctor or not. Doctors should also have the option to respond to reviews, whether to thank patients for positive feedback or to address concerns raised in the negative feedback.

Multiple Payment Options

It is very crucial to smoothen the transaction process for global users on your platform. It is recommended to provide multiple payment options like eWallets, net banking, credit /debit card, etc. for quick transactions on your platform. In addition to that, consider integrating globally popular payment APIs like Stripe, PayPal, Authorize.net, etc. 

Multi-Lingual

In order to reach global users, an online doctor consultation platform must be available in multiple languages. This offers convenience and ease to users while using your platform and breaks the language barrier. 

Session Notes

Session notes play an important role in online doctor consultation, as they help doctors document everything from patients’ online visits accurately, including patients’ symptoms, treatment plans, and follow-up instructions. These notes also help doctors communicate with other healthcare professionals more efficiently by providing a comprehensive record of the patient’s condition. Session notes should be securely stored on the platform in order to ensure the patient’s confidentiality and privacy. 

E-Sign

Completing the admission process by using electronic signatures can streamline the process of documentation for both patients and healthcare providers while maintaining privacy and security. E-sign makes it easier and faster for healthcare professionals to share critical information and obtain consent. By using e-signs, physicians can quickly sign and share prescriptions with patients. 

Video Chat

Video chat enables face-to-face communication, thus, allowing doctors to assess the physical condition of patients more accurately. This feature lets doctors make the correct diagnosis of the problem and eventually provide immediate feedback, advice, treatment recommendations, and prescriptions. Online platforms must ensure end-to-end encryption and no audio or videos are sent or stored on the server. 

Security and Privacy

Offering high security and privacy is very important for an online doctor consultation platform. The platform should be secure and encrypted so that patient’s confidentiality is not compromised. The platform must have inbuilt features to ensure end-to-end encryption, and no accidental leak of patient’s information. Online doctor consultation platforms must be HIPPA and GDPR-compliant in order to offer maximum security to users on the platform.

Other Recommended Features for an Online Doctor Consultation Platform

Free Consultation Offer

Initially, it might be challenging for an online doctor consultation business to win the trust of users. To earn the trust and give a glimpse of the service to users, a free consultation can be offered. For example – if a user comes to a doctor consultation platform for the first time, he can be provided 30 minutes of free consultation.

Gift Cards and Offers

Users can give a gift card to someone who needs a consultation with a doctor regarding any health issue. For marketing, this may work well as people will bring other members of family or friends to the portal. Thus, increasing the overall user base. Additionally, lucrative offers can be shared with existing and new customers for promoting your platform. 

Conclusion

An entrepreneur needs to invest time and effort to understand the pain points addressed by an online doctor consultation platform. Once understood, entrepreneurs can start building their own doctor consultation platform. Building such a platform requires careful planning and execution, hence, to enable entrepreneurs to make an informed decision, this blog touched on important areas of an online doctor consultation business.

The traditional concept of business as the established and dedicated place where all work-related activities take place has changed with the advent of technology. Nowadays, people are always on the move and they don’t always work from the same place. The place keeps changing with people’s movement and their work is always accessible on laptops, smartphones, tablets or any other mobile devices.

The Rise of Online Workspaces 

This transformative shift in the way people work has given rise to the concept of Co-Working Spaces. These spaces accommodate workers from different companies, providing them instant access to common infrastructure, like equipment, utilities, receptionist and in some cases refreshments and parcel acceptance services. As per Statista, the number of people using co-working spaces worldwide is estimated to grow up to 2.26 million in 2020, which is 128 times higher than 21,000 people in 2010.

Online Marketplaces like LiquidSpace, Pivotdesk and Sharedesk help people look up coworking spaces around them. They provide enhanced search options, imagery and simple filtering to make the search easier.

By providing relevant tools to market, manage and monetize excess office space, a website based on similar business model can help:

• Startups and small businesses find flexible and affordable room to grow.
• Growing businesses attain profit from their dynamic space.
• Build an economic development in downtown locations.

FATbit researchers, therefore, did an in-depth analysis of the sustainable growth of this business model to help entrepreneurs build such a website. Before we look into website features that make it unique, let’s quickly go through this business model.

Business Model of Workspace Searches Marketplace

A website based on this business model is focused on growing the supply of on-demand work space, and introducing new types of spaces to its marketplace. From hotels meeting rooms to conference centers, legal deposition rooms, and corporate training facilities, it offers easy access to on-demand renting for office spaces and private offices.

Users on the marketplace can view the listed workplaces in a specified location. Based on their requirements users can place a rental request for a workplace of their liking. Once a request is placed, the workplace owner has to approve it for further processing. As soon as the request is accepted, the money(adjusted after commission charges) is transferred to the owner’s account. To safeguard against any damages/loss, a safety deposit is kept in the admin’s account, which is refunded after the safe use of the workplace at the end of the rental term.

How to make money with such a platform

The platform does not charge its users to list their space on the platform. It only charges a commission fee when space is booked. In order to ensure repetitive booking by the consumer, the website can decrease the amount of commission as well. For example, for the first booking, if you are charging 30% of Transaction revenue net to the venue, it can decrease to 20% for the next transaction. For the third and the subsequent time, the charge can be fixated at 10% of the transaction value. You can also have premium membership plans for workspace owners to feature their listing on the website.

Website Overview

In the current market dynamics, most e-commerce websites tend to portray their niche in order to gain user’s interest as soon as they land on the homepage. This is why this website focuses heavily on the design and UX of the front page. The overall design of your website ought to be highly immersive. As soon as the user lands on the homepage, they should get a clear idea what the website is all about. Let’s take a look at each and every feature of the website in detail.

Homepage

The homepage of your website should have a unique identity, with a large banner image, tagline and a search bar in the prominent location. The top bar should consists of links like Sign In, Join, Find Spaces, Share Spaces and Help. In addition to the consumers who are looking for the workspace, you should also make it easy for the business to list their spaces. Working on a peer-to-peer marketplace, the website should offer a unique platform for businesses to stay productive and share their spaces.

Venue Categories

The second fold of the website can house all the venue categories making it easier for the end user to find relevant space. It is interesting to note that the overall design of the homepage should be consistent across all the sections be it categories, or any other feature. FATbit analysts recommend this design strategy which developing a Workspace rental website.

Workspace Types

In addition to the venue categories, you can also make it easy for the users to find workspaces based on their requirements. From collaborations to board friendly meetings, you can display all the prominent requirements on the homepage. This is beneficial for users as it removes the hassle of going through several steps to find the location for a specific purpose.

Help Chat

As most peer-to-peer platforms work on different business models, it sometimes gets difficult for novice users to get accustomed to the overall functionality. This is where Help Chat functionality comes to the rescue. We recommend a nice Help Chat button placed at the bottom right corner of each web page. Rather than traditional chats where you just send in your query and get a response later, you should provide an actual real time Help Chat feature with customer service executives.

Signup

Enticing users to register is a challenge for most peer-to-peer marketplaces. This is where the sign-up process of your website ought to be pitch perfect and user-friendly. Whenever a user clicks on the sign-up/ register link, a popup can be displayed showing the sign-up screen. The sign-up form should be highly minimal, just requiring name, email and password. In addition to it, you can also let users sign up with one-click social login.

Dashboard

As soon as the users log in to their account, they should be taken to the dashboard which showcases all the recent activity of the users. You can also let them search and book a space right from the dashboard. The dashboard ought to be highly appealing with all the relevant information present to the users.

Also Read: Top Features to Build Storage and Parking Space Marketplace

Manage Venues

The website must make it easy for users to manage all their venues under a single section. By clicking on the venues, users should have the option to edit their availability and other information like a change of pricing, timing or images etc.

Reservations

Using this section users can access all the reservations made by them. This comes in handy when you have many upcoming or past reservations and don’t want the hassle of going through each and every listing.

Favorites

This section can house all the workplaces that have been marked as favorite by the user. Each and every listing can be displayed in the grid form making it easy for the user to identify the venue.

Reviews

Being a peer-to-peer platform, you can incorporate a review mechanism, under which users can review booked workspaces. This helps other users to make an informed decision. More importantly, only those users who have used the services of a workspace can review it, which gives the review authenticity.

Pro tip – Get a workspace rental platform that comes with smart review management system

Settings

Under this section, users can access all the settings of their account. Users can change their personal information, account password and alter payment method seamlessly using this tool.

Connections

Peer-to-peer networks can only be successful if the community is connected. This is why you must have a dedicated messaging service on your platform, to manage all the connections. Using this tool, users can also manage their followers and follow other venues. Business can even add members to a group in order to provide exclusive services to the repeat customers.

Search

Other than browsing through the categories, the only option available to the users for finding the relevant workspace is the search. As discussed earlier, the placement of search bar on the homepage at a prominent location makes its importance clear. From autocomplete keywords to dynamic filters, each and every aspect of the search has to be taken care of. Some other search features include:

• Search based on hourly/ monthly booking options
• When is it required?
• Search type
• Capacity
• Price
• Additional amenities

The search results can be segregated into two sections. While the left section can show a map view of the area with all the locations, the right section can show a grid-like pattern for the locations along with price, description, and reviews. Users can also add any location to the favorites by clicking on the heart shaped button. FATbit researchers feel that such search functionality will surely add to the user experience for the Workspace rental marketplace. So, pick the solution accordingly.

Workspace Listing

The workspace listing page should have all the vital information placed seamlessly in a single page without cluttering or degrading the user experience. The top section should display the images of the workspace in a nice interactive slider. The other sections below the slider can be showcased as follows:

• Ratings
• Workplace description
• Amenities provided at the workplace
• Real time availability
• Map view
• Reviews
• Mark as favorite
• Book workplace

Reservation

You can also allow your users to reserve a venue right from the website. The overall Reservation process should be efficient and easy. By clicking on the book venue button, a popup can show the reservation form. It can include:

• Date
• Time
• Number of people
• Reservation title
• Amenities required

After filling these options, the user can be taken to the payment form where they have to make the said payment.

On-Demand Meeting Space

your website can also have additional features for businesses as well as users, which make it a one stop gateway for renting short term workspaces. One of these features can be On-demand Meeting Space. Using this feature, users can bring their company’s micro meetings into focus. The only difference between this service and traditional booking is that this is essential for users who want to micromanage their meetings and book spaces in real time without the hassle of going through all the reservation process.

Request a Workspace Tour

Although businesses do put up detailed information about the venue as well as workspaces, still it is not the same as visiting the place yourself. This is why you can also allow users to request a demo of the workspace before making a reservation. However, this feature is dependent upon the business owner to allow tours of the venue before booking. Users need to fill in a simple form in order to request a demo. The information in the form includes:

• Name
• Email
• Phone Number
• Name of the company
• Booking date
• Preferred Tour date
• Additional information

Add Your Space

Under this section, businesses can easily list their workspaces on the platform to share with other companies or individuals. The overall process involves three different steps from adding venue to adding workspace to the venue. Let’s take a look at the overall process in detail.

Enter Venue Address

The first and the foremost step into listing your workspace includes entering the venue address. Users can add the full address of the venue and the platform automatically finds and places the pin on the map. The other information related to the venue is generated automatically, but the users can themselves change the details also.

After filling the venue address, businesses need to add contact details, making it easy for users to contact them. This includes name, email, phone number and website.

Add Venue Details

The second step involves adding details of the venue including:

• Name
• Description
• Time zone
• Hours of operation
• Images

By dividing the venue details into two separate section, you can ensure that the users don’t feel the overall process to be lengthy and cumbersome.

Add Workspaces to Venue

The final step in this process includes adding workspaces to the venue. In it vital to note that users can even skip this step and only list their venue on the website. The information required includes:

• Name of the workspace
• Description
• Images
• Type of workspace
• Reservation method (Hourly/monthly)
• Capacity

After adding the information users can either continue with confirmation and add payments information or add another workspace. FATbit believes this approach is highly efficient and user friendly. We recommend a similar feature for any Workspace listing website.

Key Areas to keep in Mind

Although we have covered each and every aspect of website feature, but still there are some areas which can reduce the user experience of the website. You need to take cognizance of these issues to ensure that your website offers exquisite user engagement.

Make sure that it is easy to relate between venues and workspaces: While you can keep user experience at the top when it comes to the website functionality, users might have difficulty in getting accustomed to your platform if they cannot differentiate between venues and workspaces. Although the difference between the two is obvious, you should offer ample disparity between the two. When searching for a workplace, the results should not display venues which only have a single workplace. This creates confusion into the minds of the users.

Multiple layers of cities and venues when browsing: Other than search, browsing is the only option for workspace discovery. Make sure that you do not make overall process highly cumbersome by adding different layers of cities and venues. A common example is that first a user has to go through a list of cities and then venues in order to reach a relevant workspace. In order to make the overall process highly efficient, we recommend a filter based functionality using which users can streamline the results straight away without going through multiple pages.

Competitive Commission: Even after taking care of all the above-mentioned points, one area where your platform can lag behind is the commission charges. Make sure that you do not charge more than the competitors. We recommend analyzing the market and keeping the pricing adequate in order to entice users into using your service.

The scope for peer-to-peer marketplaces like LiquidSpace, Pivotdesk and Sharedesk is huge and can turn out to be a great alternative to workspace renting. In case you’re already planning to build an online workspace rental marketplace, then do check out Yo!Rent – a white label solution to build an online rental marketplace. It’s highly scalable and offers plenty of room for customization. Furthermore, Yo!Rent provides industry-grade security, and encompasses all the key features like in build analytics, multiple revenue generation channels, smart review management and excellent tech support that allow you to successfully launch and manage an online workplace website.

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Last Updated: November 9, 2022

A gig is referred to as a temporary job completed by a freelance worker. Some say the “gig” trend emerged as a direct consequence of the global financial crisis, while others agree that it is a clear manifestation of millennial psychology that values a flexible work schedule over the security and perks of a full-time job.

So, in a broader sense, the gig economy model consists of a workforce environment where organizations with temporary positions contract independent workers for short-term engagements. Statista reports that over 50% of the US workforce is likely to participate in the gig economy by 2027.

We are seeing the gig economy utilized in a range of roles from junior admins, and concierges, to highly skilled jobs such as website designers and developers. It is also visible at the executive level, even the executive positions such as CFOs and CTOs are now being filled in on a gig basis.

If you are interested in stepping into the gig economy, this article includes the best practices for both workers and businesses.

• How to Thrive in The Gig Economy
• Gig Economy Best Practices for Workers and Businesses
  – For Businesses
  – For Workers
• Benefits of Gig Economy for Workers and Businesses
  – For Businesses
  – For Workers
• Opportunity to Start Your Own Online Venture in Gig Economy – The Marketplace Model
• How to Get Started with Marketplace Solutions in Gig Economy?
• Final Thoughts

How to Thrive in The Gig Economy

The gig economy is finding a voice in all the major industries, but it is with the government and business services, where project-based work is the modus operandi, that the Gig economy has found the greatest success. It is worth noting that in the gig economy, much of the risk associated with an organization is transferred to the freelancer.

This goes against the conventional 9-5, a secure arrangement that corporate employees had hitherto enjoyed for a long time now. The priorities are certainly shifting now. Keen to improve their bottom line, organizations are turning to such measures as cost-cutting, salary pruning, and offshoring that threaten to take away the economic security of the average person.

This scenario strengthens one’s belief that it’s worthwhile to ‘build one’s own brand’ as we move into the future. An underlying cause for the growing interest in the gig economy can be attributed to the modern workforce’s desire to work without bosses. People are much happier working for apps. Take for instance the ride-hailing and home delivery services. Moreover, we have several blue-collar and white-collar marketplaces such as Handy, Angi, Task Rabbit, Thumbtack, Fivver and UpWork that operate on gig business models.

They have created a whole new market and an affluent one at that. On the face of it, software technology or the marketplace that powers gig-based operations looks like the life force of the gig economy. Thus, it is imperative for business owners to properly assess their gigs marketplace technology.

Gig Economy Best Practices for Workers and Businesses

Whether you are an employee who wishes to take advantage of the gig economy or a business that is planning to outsource its work to a freelancer, we have compiled a list of the best practices for both parties. Let’s have a look.

For Businesses

Succeeding in the gig economy depends a lot on the owners’ understanding of the current market situation and the major pain points of the freelance community. Following are a few crucial ways businesses can look to satiate the demands of the growing gig economy.

Identifying the Requirements and Gaps

Businesses should evaluate their upcoming projects and workload for the year ahead. They should keep in mind the requirements in terms of market knowledge, technical capabilities, and strategic expertise and check if the skills required exist within their current team or not. If not, consulting a freelance platform to patch the company’s gaps is an ideal option without adding unnecessary headcount.

Embracing Continuous Improvement

One of the best ways to thrive in the gig economy as a business owner is to embrace the concept of continuous improvement. It immediately adds diversity and opens up the market. But true innovation isn’t without challenges. You’d have to make plans to counter the difficulties of dealing with global partners and implement a strong operational process that simplifies onboarding, communication, payments, and more.

Consider the timeline (shown below) of Fiverr, an online marketplace for on-demand freelance services, and observe how it improved its value proposition over the years.

Fiverr Timeline
Information Source – Wikipedia, Graphic Credit – FATbit

Using an Established Platform

Ad hoc workforce management can become profusely troublesome unless a well-run, venture-backed technology platform is used. It makes it easier for the business and employees to work together. An established outsourcing platform maintains stable and vetted talent making it easy to post ads, evaluate proposals, and candidates, and manage the logistics of projects and payments.

Community Building

Many of the benefits that come from working in a team environment are absent in the gig economy. Freelancers are on their own to conjure up their creative genius. That’s where the owner of a gig economy business can swoop in and look to create a sense of community by connecting freelancers with each other.

Setting up a LinkedIn group or organizing global meetups could strengthen the community. A content and appreciated group of freelancers will recommend you to their peers and help popularize your business in the industry.

LinkedIn Groups for Freelance Professionals

Having a Long-Term Vision of a Blended Workforce

As it is suggested to plan the hiring strategy at least a year ahead of time, consider how the on-demand workforce factors into the equation. Planning out the needs and availability clearly will give you a clear picture of the experts required on a project-by-project basis and full-time employment. Accordingly, the hiring team can become agile while hiring freelancers and strategic for full-time employees. Especially if they use a solution like Salarship to hire.

Keeping Things Simple

Freelancers are a busy and self-sufficient lot. They are often juggling multiple things at a time from marketing and customer support to financial planning and more. As such, they have little room to cram more activities into an already busy schedule. It is a good idea to avoid sharing a lengthy version of the terms and conditions.

An attempt should be to make it easy for freelancers to work with you. A marketplace for freelance professionals that is self-intuitive and easily manageable is often the most successful. For example, Uber allows its drivers to set their availability, interact with passengers, and manage their accounts all with ease.

Making On-time Payments

For most people, gigs are a way to earn quick income by doing something they love without expending all their energies. That is considering they are paid on time. The last thing a freelancer wants is a payment delay for the services offered. It is crucial therefore that you transfer payments on time, especially to global partners to keep your goodwill intact.

A great way to enable quick and reliable payments is to invest in a global automated payment system such as Stripe Connect or Paypal Adaptive.

Note: Stripe Connect and Paypal Adaptive are the recommended payment gateways for marketplace models where automatic split-payment is essential.

For Workers

Regardless of the type of work, freelance workers feel a host of personal, economic, and social anxieties without the support of an employer. That being said, working as a freelancer is their own choice and they do not prefer to give up the benefits that come along. However, there are certain strategies to navigate the emotional ups and downs and gain the energy to work as a successful freelancer. Let’s have a look at them:

Building Routines

Building a routine enhances focus and performance. There are work-specific and personal routines. Work-specific routines include keeping a schedule, starting the day with the most challenging work, and following a to-do list which can improve productivity and focus. Building personal routines like incorporating self-care, sleep, nutrition, and workout enhances people’s sense of order and control in uncertain conditions.

Socializing

As humans are social creatures, loneliness can be devastating to the success of independent workers. Developing cordial relationships with like-minded professionals and people in similar fields at a local co-working space can significantly help freelancers in challenging times and take necessary risks.

Setting up Workspaces

Disconnection from a corporate office can become a downfall for many freelancers. Many freelancers fail because they don’t create a proper working environment. Gig work is often portable, so creating a space for productive work helps prevent feelings of rootlessness. It is also a driving factor in the rise of coworking spaces around the globe.

Benefits of Gig Economy for Workers and Businesses

For Businesses

Pros

• When looking for the right gig worker, employers do not need to limit themselves to their own city or town. The gig economy lets the businesses cast a wider net to have an improved chance of finding the best-fit candidate.
• The gig economy allows employers to hire ad hoc only when there is a requirement and prevents them from paying salaries to full-time employees when there is no project/income.

For Workers

Pros

• The traditional Monday to Friday nine-to-five may not work for all workers because of family commitments and other chores. The flexible schedule is the true essence of the gig business model allowing the workers to do what they want and when they want.
• The gig economy allows the workers to explore their true selves while maintaining the security of their regular job. Workers can work on that part of the pursuit for as little or as much without taking that leap of faith and quitting jobs.
• Gig jobs let workers ask for the desired salary which is not possible in traditional jobs. Workers can even decline the job if the employers are not willing to pay their worth.

Opportunity to Start Your Own Online Venture in Gig Economy – The Marketplace Model

An on-demand business marketplace within the gig economy revolves around 4 main entities. The admin, gig marketplace website, service provider, and freelance professional/independent contractors. An admin controls the website to bridge the gap between service providers and freelance professionals. For that service, the admin earns a percentage for every successful transaction in the form of a commission.

A freelance gig marketplace is where all the magic happens. Service providers set up their accounts on the website to advertise their services/products along with helpful information. Independent contractors are central to the success of a portal. They visit the website, look up the products and place the order as per their requirement.

The more independent contractors a portal has the more likelihood of transactions and eventually greater chances of growth and success. Payment for the gig is transferred to the service provider after subtracting the admin’s share of the commission.

How to Get Started with Marketplace Solutions in Gig Economy?

If you have decided to get your feet wet in the gig economy, then here are a few market-ready solutions worth looking at.

Yo!Gigs – Online Service Marketplace Software

• Earn profit by bridging the gap between service-seekers and freelance professionals/service-providers.
• Turnkey solution to build service marketplaces like TaskRabbit, Fiverr, Thumbtack, Upwork.
• Benefit from market readiness, scalability, quick setup, and multiple revenue generation options.

PaperWeight – Online Marketplace Solution For Freelance Writers

• Comparison of freelance writers on experience, skills, & ratings.
• Easy payments with eWallet.
• Monetization options like banner ads and sponsored writers.

VivoGigs – Event Marketplace Platform

• An ideal solution to build a Marketplace for event organizers and performers.
• Customizable as per the business model and other strategic goals.
• Highlight features include reviews and rating systems, gig posting, and social media integration.

Yo!Meals – Meal Kit Ordering & Delivery Platform

• An off-the-shelf solution to launch an online meal ordering and delivery portals like Blue Apron, Hello Fresh, and more.
• Offers robust features to enable entrepreneurs to manage the website with ease.
• Responsive design, meal catalog management, location-based search, e-wallet, rating & review system, social media sharing, and more.

FunAway – Online Travel Activity Booking Solution

• A readymade solution to launch a travel activity booking marketplace. 
• Brings travel enthusiasts and local vendors close to each other. 
• Responsive design, multiple revenue streams, user-friendly booking management, social media integration, and much more.

VivoCabs – Cab Booking Mobile App Solution

• Packs feature backed by market analysis.
• Engaging user-experiencing to make the app a joy to explore.
• Offers live-ride tracking, fare estimate, review & rating system, push notifications, and more.

Yo!Care – Marketplace Solution for Care Services

• Kickstart marketplace for care services like senior care, pet care, and more. 
• Economical investment solution with hi-performance features.
• Completely customizable and mobile-friendly design. 

Yo!Pro – Online Professional Search Marketplace Platform

• A feature-rich solution to enable maximum growth. 
• Built using open source technologies and scalable.
• Offers a simplified content management system (CMS), responsive design, and more.

Final Thoughts

In the gig economy, the key to success lies in companies’ ability to understand the immediate needs of freelancers and find ways to nurture long-term relationships with them. The role of technology to surmount common obstacles be they payment-related or to facilitate the workflow will remain as crucial as ever.

FAQs

Q1. Who Are Some Leading Players In The Gig Economy?

Ans: Some leading players in the gig economy are Angi, Handy, TaskRabbit, and Thumbtack for blue-collar services, and Upwork, Fiverr and Freelancers.com for white-collar services.

2. Which is the Most Reputed Software to Launch a Gigs Marketplace?

Ans: The choice of software depends on your business preference. Basically, there are two common types of software, which are SaaS and self-hosted. If you are interested in self-hosted lifetime licensed software then Yo!Gigs appears to be a superior choice. It comes with advanced features like task management, user management, bidding management, tasker checklist, background verification and more. Plus, as Yo!Gigs also supports unlimited users and transactions, it can easily accommodate all levels of business growth. 

3. What are some Gig-based Business Ideas that I can Start?

Ans: Some gig-based businesses with maximum business potential are homeservices marketplaces, handymen marketplaces, freelancers marketplaces, babysitters marketplaces and elderly care marketplaces.

 Last Updated: 21st November, 2023

The past two years have been quite challenging for business owners considering the volatile consumer demand in global markets. However, with time there has been some stability in many  industries, especially in their online models that facilitated quick recovery from the aftermath of the pandemic. Some of these industries are travel, education, on-demand services, rental industry, consultation and peer-to-peer.

Online business models in all these aforementioned industries are expected to generate the majority of the market share in the online service sector. Some other reasons why they are gaining traction are:

1. Provide convenience to customers: Online business ideas are bringing more and more convenience to customers, who don’t have to step outside and purchase products/services right from the comfort of their four walls.
2. Have gained public trust: Online businesses have become quite reliable in the past few years. Today, customers are sure that they can easily return a product, get a refund or even talk with appropriate customer support on an online store.

Considering these and all other benefits of launching an online business, we bring you the following online business ideas that are going to be immensely popular in 2024:

Note: Along with the business ideas, we also bring you the technology solutions that you can use to enter your desired industry and launch a fully-functional online marketplace or store. Kindly scroll to the bottom of this blog to find our solutions table.

Table of Contents

• eLearning Industry
• Web Store Businesses
• Peer-to-peer Industry
• On-demand Services Industry
• Food Industry
• Transportation Industry
• Adventure Tourism Industry
• Consultation Industry
• How FATbit Helps?

eLearning Industry

• Online Tutoring

Online tutoring services are increasing at a highly competitive rate of 15.6% CAGR in the period 2021-2028. As the pandemic fueled many online tutoring businesses, numerous educational institutions adapted to them and found online models significantly valuable to provide remote learning access to different corners of the world. Some other reasons behind the surge in online tutoring are the proliferation of the internet and global access to smartphones.

With the correct technology to access online information, school to college students and individual students find it easier to learn digitally via synchronous models. These eLearning models include live tutoring via chat, video conferencing or group streaming and help learners understand difficult concepts in real-time.

Some popular online tutoring businesses are:

• Online Courses

In contrast to online tutoring, online course businesses follow the asynchronous teaching method where courses and study materials are prepared beforehand and provided on the platform. It is via reading this material that students learn. To resolve any queries, learners need to revisit the course material or find out more resources on the platform or the internet.

Massive Open Online Course (MOOC) platforms, such as Udemy and Coursera follow the asynchronous teaching model where college professors curate online courses and upload them on the platform.

Web Store Businesses

• Multi-vendor Marketplaces

Multi-vendor marketplaces are asset-light businesses where the business owner is required to own minimum capital to conduct business operations. In general circumstances, he/she only provides the platform, customer support and handles administrative works. On the other hand, it is individual vendors and merchants who upload and sell their products on an online marketplace.

The business owner of a marketplace platform earns via various methods with sales commission and membership subscription being the most common. Other revenue streams can be paid advertisements, display listings, gift cards, etc.

As per Finextra report, B2C online sales via marketplaces are forecast to increase by a 14% CAGR to USD $4.7 trillion by 2025, implying huge potential in starting an online marketplace business in 2024. 

• Dropshipping

Dropshipping businesses are proliferating at a rapid rate. This is because the dropshipping model is also an asset-light model where the business owner only needs to purchase inventory after an order is placed. In this type of business, there are usually two main entities involved, which are the dropshipping store owner and the supplier.

Whenever a customer places an order on the dropshipping store, the business owner informs the supplier who then packages the product at his own warehouse and ships it directly to the customer. This way, the business owner does not have to manage warehousing and shipping nor bear the risk of loss by only purchasing inventory after the order has been placed.

Peer-to-peer Industry

• Online Classifieds

The online classifieds business model is one of the oldest existing online business models. On an online classifieds marketplace, different people sign up and upload listings for sale and purchase of second hand products. Once they find a required product, they contact the seller through the platform, clear any queries and discuss the mode of payment and delivery.

Online classified platforms earn through several revenue generation channels such as selling commission, paid listings, membership subscriptions, display ads, pickup and delivery charges, and more.

• P2P Car Rental

The P2P car rental industry is witnessing significant growth in global COVID lockdowns. With people owning multiple vehicles and due to work from home restrictions, car owners are finding renting out their idle vehicles a reliable and lucrative source of revenue generation. According to GM Insights, the online car sharing industry is growing at a very high CAGR rate of 20% in the forecast period 2021-2027, indicating a huge potential in launching a P2P car rental business.

• Boat Rental

There are different types of boats that people rent out on an online boat rental platform. The main reasons behind the activity are for recreational purposes and traveling. The scope of business in the industry is also very transparent with a CAGR rate of 5% in 2020-2025. Apart from this, day cruisers with length ranging from 21 to 25 have the highest market share. As boats are a very expensive capital and often used occasionally by boat owners, it is common for owners to rent them out on a peer to peer boat rental platform.

Western countries with lakes and rivers are the top markets to launch an online boat rental business. This business will be similar to a P2P car rental business with rental commission being the primary source of revenue generation.

• Dress Rental

The online dress rental industry is also booming in designer wear rental, bridal wear rental, fashion rental and costume rental markets. Marketplaces like Rent the Runway and The Style  Lease are proven successful business models for the dress rental industry where customers can rent out dresses for 4 to 8 days.

On a peer-to-peer dress rental store, customers can rent out different types of outfits as a bundle or standalone products and earn via rental fees. The business owner also gets a commission as a source of income along with many other revenue streams. The peer-to-peer online dress rental business mostly supports hyperlocal operations.

On-demand Services Industry

• On-demand Home Services

The US on-demand home services sector alone accounted for a market share of $600 billion in the year 2020. That being said, the global trajectory for the same estimates to $1574.86 billion by the end of year 2024, which is in approximately three years. The reason behind the popularity of on-demand home services is simple, which is quick access to thousands of professionals within a few taps on your phone, be it plumbing, carpentering, house cleaning and more.

The business model of an on-demand home service business is also quite simple. The customer books a service based on demand and the business owner sends the corresponding service provider. In case of a multi-vendor home services store, different service providers sign up on the platform and enlist their services. From there, customers get to select the service provider of their choice and the providers can also place bidding on a service.

• Babysitter Services

The babysitting industry falls under the global child care market, which is expected to reach $524 billion by the end of 2022, adding more than $180 billion in its revenue in the past 4 years. The main reason behind the success of online babysitting services is the difficulty parents face in finding a suitable babysitter for their child. 

On an on-demand babysitters marketplace, parents can find a babysitter within a few minutes and select the most suitable one for their children. They can also filter babysitters based on their age, gender, experience, hobbies and fees. 

• Elderly Care Services

The global elderly care industry (be it home services, nursing or assisted living devices) is projected to reach $1942 billion in the next five years. This is one of the most substantial growth in the on-demand services industry. The demand for elderly care is estimated to increase in the future due to increase in chronic illness rates and a gradual rise in awareness of elderly care service professionals.

With the help of an online elderly care services business, entrepreneurs can provide families with qualified professionals and also create monthly service subscriptions. Alongside, they can offer add-on services and products to make their marketplace more helpful for senior citizens. 

• Pet Care Services

The pet care market is another market that accounts for over $200 billion in the global economy. As per the reports, it has been projected to reach $325.74 billion in the year 2025. In fact, the Canadian Household expenditure on pet insurance alone amounted to over $2 billion in the year 2019. This shows the increasing love in global communities for pets and animals.

However, due to the hectic lifestyle, it is not possible for the majority of consumers to own a pet. For this reason, they prefer to hire a pet care professional who can look after their pet when they are at work. Similarly, families going on long vacations and holidays also prefer to hire pet care professionals.

Along with pet care professionals, entrepreneurs can offer pet grooming services, veterinary services, pet food products and toys on their online marketplace.

• Artists Marketplace

An artists marketplace follows the gigs marketplace model where different types of artists, such as musicians, dancers, magicians, stuntmen, yoga professionals, cooking experts, etc. sign up on the platform. After they have signed up, they can explore different gigs uploaded by customers and place their bids. On the other hand, these artists can list their services as well and customers can browse artists and select the most suitable ones for their jobs themselves.

Online artists marketplace falls under the entertainment industry, which has been one of the most successful markets in the world. Be it birthday parties, marriages, holidays, business events or any other occasions, entertainment professionals are often required in them all. 

• Mechanics Marketplace

The mechanics marketplace is a newly emerging business model that has only existed in the world from the past decade with the majority of growth accounting from the past five years. A major reason behind the success of mechanics marketplace and their increasing demand in future is their immediate cost-effective assistance and the ability to provide local garages with quick access to a wider audience.

On a mechanics marketplace, a customer can purchase a service or hire a mechanic for various types of car services like on-road assistance, regular servicing, paint job, etc. Some popular mechanics marketplaces that received global appreciation in the past decade are:

Food Industry

• Online Food Ordering

The food industry brings vast profit margins to business owners, and with globalization of cultures and ethnicities, people now get access to delectable gourmet dishes at their homes with online food ordering business models. Along with gourmet food, online food ordering marketplaces are also recognized for being a quick and easy alternative to traditional home cooking. With this merit, food delivery businesses are immensely popular amongst students and working professionals.

As per global statistics, the online food delivery market valued at 106.1 billion US dollars in the year 2021 alone. Rooting from these estimations, the market is further speculated to reach 223.7 billion dollars by 2027 with a CAGR rate of 11.44%. With these numbers and high average profit margins of 20-35%, launching an online food delivery business is a very lucrative business idea. 

• Meal Prep Businesses

Meal prep businesses are growing at an impressive CAGR rate of 13% in the forecast period 2021-2028. These businesses came into existence as they fulfilled the various demands of global consumers, such as the need for fresh food, gourmet cooking experience and cheap storable alternatives to traditional meals.

Meal prep businesses differ from food delivery businesses in a major way that they require customers to cook their meals themselves. Meal prep business owners, on the other hand, provide ingredients and recipes for the meals.

The meal prep business can be of various types such as:

• Heal and eat meals
• Gourmet meals
• Prescription meals
• Goal-oriented meals
• Pet meals

Some popular meal prep businesses along with their revenue are:

For more information on how to start a meal prep business, check out this blog. 

• Online Grocery Delivery

Busy lifestyles of millennials and COVID19 lockdowns led to an upsurge in the usage of online grocery delivery platforms. Not only these platforms save time but also offer a diverse and significantly superior value proposition to customers. During the heat of the pandemic, the online grocery delivery business grew to over $20 billion in the US alone with a consumer count of over 150 Million.

Online grocery delivery businesses fall under the hyperlocal business model where multiple local grocery vendors sign up and upload product listings. The business owner or the admin control the online store via a web admin panel whereas customers use a mobile app or website to place orders. Some unique features required in online grocery delivery are GPS tracking, driver routing, geo-fencing, delivery slots, etc.

Some grocery delivery solutions also come with a delivery staff application.

Transportation Industry

• Online Cab Booking Services

According to Allied Marketing Research, the global taxi industry is projected to reach a whopping $120 billion market share in the year 2027. The rise of online cab booking and increase in the cost of vehicle ownership are the most dominant factors driving this growth. If we talk about online cab booking alone, then the expected CAGR rate of the industry was 22.3% in the year 2020-2021, amounting to an overall market share of $28.65 billion.

• Self Driving Car Rental

The self driving car rental market contributed $86 billion market share in the year 2020. If we trust the Business Wire reports, the industry is estimated to add another $45 billion to this amount in the next five years. As the trends imply, self driving car rentals are used by tourists, travellers, nuclear families and young business professionals for recreation and entertainment purposes. Moreover, renting out cars instead of purchasing them is also more sustainable for the environment. Thus, receiving support from the sustainable economy. All these facts make renting out self-driving cars a highly potential business idea in 2023. 

• Truck Rental

Business-to-Business domains rely heavily on rental trucks for transportation. These trucks are equally used by house movers. Considering roadways to be the most widely used means of transportation, trucks transport thousands of tonnes of logistics every year. To summarise the growth potential of the truck rental industry, it is estimated to reach $214.19 billion by the year 2030 at a CAGR rate of 10.23% in the forecast period 2022-2030.

Some other reasons behind the proliferation of the online truck rental industry are urbanization and capitalism. More and more businesses are trying to expand their services to remote regions and for this, they are dependent on road transportation services like logistic trucks.

Adventure Tourism Industry

• RV Rental

The recreational vehicle (RV) rental industry stayed pretty much immune to the COVID-19 pandemic due to pre-existence of online booking models and the safety of a private vehicle like RV. Moreover, as the purchasing power of consumers recovered after global lockdowns, the industry witnessed a gradual incline in revenue charts.

The RV rental industry rents out vehicles like caravans, motorhomes, fifth wheels and campervans. These vehicles are fully furnished with beds, toilets and cooking stove, making them a perfect luxury to enjoy a holiday vacation. Another use case for RVs that has arrived recently is booking RVs for guest accommodation.

For complete information and business startup guide, check out our blog on how to launch your own RV rental business RV rental business. 

• Camping and Outdoor Equipment Industry

The camping equipment market is proliferating at a CAGR rate of 6.68% in the forecast period 2021-2026. Post COVID-19 pandemic lockdowns, the industry witnessed a revenue boost as the majority of urban cities continued following a work from home policies, giving recreationists more leisure time to go on holidays and workations.

Different types of camping and outdoor gear equipment that can be rented out on an online outdoor equipment rental store are bags, camps, flashlights, ropes, footwear, apparel, cameras, bikes, first aid kits, helmets and water campers. All these equipment can be rented out in bundles and packages as well.  

Consultation Industry

• Legal Consultation

The legal services market already claimed a whopping $713.7 billion in revenue in 2020. With a CAGR rate of 4.5%, this number is expected to reach $908.26 billion in the next five years. The business model of an online legal consultation business is similar to that of synchronous learning, where multiple legal advisors can sign up and provide consultation services. The marketplace owner earns through service commissions and many more revenue channels.

Some renowned online legal consultation businesses are:

• Medical Consultation

Medical consultation marketplaces follow a simple business model where different medical professionals sign up and list their services. People can also join the platform and consult a doctor that they find reliable to diagnose and help them with their health problem(s).

As per the statistics, there was a 500% growth in the usage of online medical consultation platforms in 2020. While the global lockdowns initiated growth in the online medical consultation industry, the convenience of these platforms and marketplaces is going to sustain this growth for a long term.

How FATbit Helps?

FATbit is one of the best custom software development companies and provides a wide range of readymade whitelabel solutions that entrepreneurs can use to launch diverse types of online businesses.To help you launch your eCommerce business in the aforementioned niches, FATbit has the following solutions:

All FATbit marketplace solutions are available at a one-time cost and come with 1 year of free technical support. Along with this, they all are fully customizable and scalable (support unlimited listings, transactions and user profiles.) Visit our product page to find the instant demos of our all products or you can also click here to book a personal one-on-one demo to understand the functionality of our solutions as per your business requirements.

The descriptor “Game changer” has been used by many industries. Technology is contributing in making an industry game changer but cosmetics industry has completely altered the traditional form and has evolved as a revolutionary business model innovation.

In the fast moving consumer goods (FMCG) and retail sector, the cosmetics industry is evolving with trends and consumer behavior. Over the last few years, some trends have emerged to redefine the future of beauty.

Customized cosmetics being one of the many trends have been catching the eyes of many customers but the industry is in its nascent stage for entrepreneurs.

The customized cosmetics industry evolved by finding a connection between micro-trends and macro-consumer needs, which are readily shifting. So the real question here, is it justified to invest in something that has become popular due to trend. The industry is creating more micro-trends which are representing serious opportunities.

Here we present, the business model, revenue model, features, what industry leaders have to say about it and the future of the cosmetics.

Business Model for Online Customizable Cosmetic Industry

Understanding the customer’s requirement then creating a product.

• The company must preferably work in creating customized cosmetics only.
• The customers are given categories from which they choose the product.
• After selecting the product, the customer will be asked questions to understand the problem.
• Depending on the allergies or reaction, the website selects components to be mixed in the product base.
• The brand with the help of logistic partners will create a customized product and deliver it to customers.

Providing customers with a base product and making minor changes according to customers

• A company which is already in the cosmetics industry can add a service to increase the number of customers and engagement.
• The customer after choosing the regular product can get the label, fragrance, color, or minor details changed.
• The buyer can modify the selections to further customize the base product.
• The elements can be predefined by the brand.
• With the help of logistic partners, the brand creates and deliver the final product.

Market players

• Giella Customization
• Function of beauty
• Unique fragrance
• I love skin inc
• Esalon
• Insitu

Feature Analysis of Online Customizable Cosmetic Industry

• An algorithm to understand customers preference– Understanding the customer and his/her preference is one of the most important things while customizing a product. The website needs an algorithm to get the specific details of the customers to design the product. While some businesses are using face detection to know the details such as skin tone, others are indulging the customers to choose the best options according to their traits.
• Intuitive UI– As people have to fill in information about themselves or their preference, they need an intuitive interface which will keep them motivated to take the trouble of filling the information. Business can add gamification to their website to provide the best customer experience.
• Specific motive packages– There are different types of buyers on a customized cosmetic website. There are a few who need products for specific skin or hair problem. A customer should be allowed to find customized products. For example, hair fall is a common problem, especially for females. The website can provide a package of shampoo, conditioner, mask, serum specifically for hair fall.
• Social sharing– Social sharing functionality is highly important for customized cosmetics business as customers want to share their created products with their friends or family on social media. This will increase the customer experience and also help promote your business easily.
• E-commerce section– Businesses can sell their ready-made cosmetics online on their website as not all customers want to customize their cosmetics for their skin.
• Review– Reviews help build the trust of new customers and improve conversions. Use high-resolution product images to complement the trust-building element of the website.
• Gifting options– Cosmetics and self-grooming are products which people may want to gift. The website must have an option to order the customized product and also have an option for gift-wrap.
• How it works– People are not accustomed to the idea of customizing their own cosmetics according to their skin tone, Skin type, hair type, etc. A “how it works” section must be there on the website. Make sure that this section is on the homepage or at a prominent page so that people have a fair idea as to how they have to customize the product.
• Detailed navigation– If you provide customization of many products make sure you have an easy and well-planned navigation. So that people can easily find the product under the right categories.
• Subscription plans– Businesses can tweak their revenue plan and introduce subscription plans. People buy cosmetics on a regular basis, it may be monthly, quarterly or yearly.

• FAQ– When it comes to beauty products, customers have a lot of questions. Maintain a web page and publish a list of frequently asked questions (FAQ) to help users find solutions. Here are a few of them:
  • If I have oily skin should my moisturizer have aloe vera?
  • What ingredients should be in the shampoo to reduce hair fall?
  • I am a fair complexion girl what tone of foundation should I buy?

Tips for the Success of Customized Cosmetics Business

USP– The business must mention the USP of their customized product on the website. Like some of the important USP, a customized business can showcase is paraben free, chemical free, etc.

Upselling– To increase average order value, custom cosmetics companies have to focus on upselling products. It is easier for them to upsell as when a customer buys a shampoo, he/she also wants to buy conditioner or serum.

Samples available with a minimum order– To increase sales and revenue of the business, custom cosmetics can provide samples or free products with a minimum order. For example: when a customer order for $300, they will receive free products with the order. This encourages customers to complete the $300 mark.

Consultation from experts– For most products, customers would know if it is suitable for their skin type or skin tone. The website can have an option where customers can fill in the details about their skin and experts advise them on which product to choose.

Revenue Model

According to a market analysis, it was analyzed that the global cosmetic products market was valued at USD 532.43 billion in 2017 and is expected to reach a market value of USD 805.61 billion by 2023, registering a CAGR of 7.14% during 2018-2023. The scope of the report is limited to various products, like hair care, skin care, oral care, color cosmetics, fragrances, soaps and shower gels, and sun care products.

Advertisement– The entrepreneur can earn extra revenue by advertising non-competitive businesses on the website. If the website has advertisements for salon services, clothing website, and more, they can earn some extra revenue.

Subscription– As cosmetics is a consumable product, the customer would want to re-order after a set period of time. To earn continuous revenue, entrepreneurs can introduce a subscription model on their website. Know more on this topic by going through our blog post on subscription box for men & women.

What is Online Personalization Cosmetics?

The beauty industry has understood that they have to embrace personalization as no two faces are similar. Famous brands are recognizing this need and implementing personalization. With cosmetics, people are feeling a sense of paralysis and they have a lot of options to choose from. When given a lot of options they are less likely to purchase anything or be happy with the product they have bought. This is the reason beauty brands have started using personalization.

Brands who personalize cosmetics

CoverGirl

Last year, CoverGirl launched an app, Custom Blend, that analyzes people’s skin tone, intensity, and undertone, generating a numeric indicator that matches them with the right products. The whole experience is personalized, right down to the packaging. People can select fonts and label colors, and even include their name on the bottle.

Shiseido

Shiseido has a skincare system that can determine someone’s skin texture, pores and moisture content with a photo. It even takes into consideration variables such as temperature and humidity. From there, Optune transmits the data to its IoT-enabled machine, which dispenses the correct serum and moisturizer combination.

Sephora

Visual Artist is a feature within the Sephora app, a feature that combines facial recognition and augmented reality. It allows consumers to “try on” different products. Skin tones have many subtle variations; so do cosmetics. And those differences don’t necessarily translate the way you think they will.

What industry leaders have to say about personalized cosmetics?

John Ellett, a contributor at Forbes, had an interview with Bridget Dolan, VP of Interactive media, Sephora. The interview’s main focus was on highly relevant personalized data helping the cosmetic industry.

Bridget Dolan: “Every decision that we make has our customer at the center. I think a lot of companies say that. But we really mean it. We think about, “How will this impact our customers?” “What’s the right thing for our customers?” Then we think, “OK. Hopefully, it’s also the right thing for us.” And in some cases, it’s not and we still do it anyway. A lot of what we’ve built, whether technology, social media or a lot of things that we’ve worked on in recent times, has been focused on the customer — whatever she needs to be able to make that purchase. We have not put technology for technology’s sake in our store just because we thought it would be cool.”

Loli Beauty newly launched in the beauty industry opinion about “micro-customization”.

Tina Hedges, founder Loli Beauty, says “The concept of a static skin or hair type is outdated and driven by the business requirements of big beauty companies, rather than the actual needs of the consumers. Nutrition, health, emotions and even geo-locations impact the state of your skin or hair. Micro-customization on-demand allows our consumers to personalize their products based on their daily needs.”

What is the Future of the Cosmetics Industry?

The future of the cosmetic industry has taken customization one step forward. First people had to fill in the details and preferences to customize their product. Now there are devices which will create the product for the customers at home. Using water and encapsulated raw materials, ranging from skincare to hygiene and hair products.

In the past few decades, the beauty industry has become bloated and there hasn’t been any change in the value chain either. With many newcomers in the online market, people can do much more by deciding what cosmetic they want to buy. Additionally, now they can customize every parameter of the product that suits them personally.

This is indicative of the fact that we have entered an age of e-retail where providing an easy online service isn’t enough anymore. It all finally revolves around providing the audience with an individualized experience.Given the fact that there are not many such startups in the cosmetic industry recently, a personalized beauty product service is indeed looking towards a bright future.