By definition, Silicon Valley produces no shortage of innovations. But of the tech world’s many brilliant modern disruptions, the one that is looking like the next big revolution is the On Demand Economy. Defined as “the economic activity created by tech companies that fulfill consumer demand via the immediate provisioning of goods and services,” the On Demand Economy took off around 2009. Since then, for many areas of life, frictionless instant gratification is routine.
The On Demand Economy is the culmination of years of trends and advances:
- Smartphone penetration is at record highs, creating an “always on” economy
- Mobile purchasing is more secure than ever before
Location-based services are ubiquitous, making it easy to link the supply and demand of goods without hassle
- Consumers increasingly prioritize speed and convenience
The labor market is becoming more fluid, with part-time workers seeking flexible hours and an easy, entrepreneurial way to make money on the side
- Emerging resources like the Affordable Care Act’s health insurance marketplace bolster this labor supply, giving the “1099 economy” the social safety nets it needs to function smoothly
All these trends combine to what’s being called “the uberification of everything.” Services from housecleaning to eldercare to massages, and products from groceries to flowers to dinners, are all available at the touch of a button. The On Demand shift in transportation – ridesharing, carsharing, and more – also extends to reduce the need for car ownership and thus improves our environmental stewardship.
As this explosion of services continues, the next phase of growth comes from addressing the challenges On Demand companies face. In particular, eliminating the bottleneck of creating the safe and scalable fleets required for the mobility of physical goods and services would be a boon to the whole field. Solving such issues not only reduces friction for the current players, letting them focus on their core products instead, but also lowers the barriers to allow more players into the space.
The first phase of the On Demand Economy was all about fulfilling immediate demand for digital goods and services. The second, which we’re seeing explode now, is bringing the same convenience to physical goods and services. And the third will be enabled by the burgeoning new technology stack that lets anybody start an On Demand company, anywhere, unlocking the vast transformative power of the trend. After all, it makes no sense for each of the hundreds of On Demand companies and startups to reinvent the wheel.
“Ridesharing and other On Demand services are becoming so widespread and complex that we need analytics layers like Zendrive to enable the next level of innovation and efficiency,” says Bill Tranchard of First Round Capital.
Safety is the first concern of many players in the space. Recent events have demonstrated that safety for On Demand services is a combination of two elements – driver background (Fit) and driver behavior on the road (Safety). Together, these are two necessary conditions for establishing trust. Today we’re excited to announce that Zendrive and Checkr are partnering to help the On Demand economy become safer and more trustworthy.
As the leader in background checks, Checkr offers a scalable way to establish driver Fit. As the only company offering smartphone-based driver analytics for On Demand fleets, Zendrive offers the most scalable way to ensure driver Safety standards are met.
While we work together on an upcoming cohesive safety service offering, we’re offering discounts to customers to promote safety and security for all On Demand fleets. Checkr customers can get the ZenFleets service for up to 50% off, and ZenFleets customers get up to 20% off of Checkr background checks.
“Trust and safety are key elements to any On Demand business,” says Daniel Yanisse, CEO of Checkr. “Any business which deploys strangers to customer homes, or drives customers around, cannot function without the ability to prove the trustworthiness of its service. By combining background checks and driver safety reports, any new On Demand business can confidently assure its customers that their interactions will be safe.”