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One offshoot of the mobile revolution has been on-demand services. First put on the map by ride hailing service Uber, these are defined as mobile apps that allow consumers to summon products or services in an on-demand fashion, which are fulfilled or delivered offline in their local market.

These services have often been referred to as “collaborative consumption” or “the sharing economy.” Now, as services extend to several local vertical segments – areas core to BIA/Kelsey’s longstanding analyst coverage – we’re calling this transformative area the “local on-demand economy” (LODE).

BIA/Kelsey takes a close look at this local commerce model in the Insight Paper, “Local On-Demand Economy: The Uberfication of Local Services.

In the local on-demand economy, demand comes first as consumers make their need known. Supply, local service providers, then adjusts accordingly. This creates more efficient customer acquisition—a critical factor for local service providers with small or non-existent budgets for upfront marketing. Therefore, the addressable market for local on-demand services could exceed the boundaries of local advertising, making it a growth opportunity.

Michael Boland, VP and Chief Analyst, BIA/Kelsey, Report Author

Why You Should Read ‘‘Local On-Demand Economy: The Uberfication of Local Services

The insight paper “Local On Demand Economy: The Uberfication of Local Services” suggests the rise of the “local on-demand economy” may lead, in certain vertical segments, to flipping the traditional local advertising model, in which advance marketing is required to connect buyers with sellers. Instead, demand is captured and revealed for service providers to react to in real time, essentially replacing marketing with a commerce engine.

The report details the drivers of the local on-demand economy—mobility, cultural, generational, economic, geographic and technological. It also examines best practices and maps the trajectory of this emerging local commerce segment.

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Local On-Demand Economy: The Uberfication of Local Services

Who Should Read This Report:

  • Media executives interested in location-targeted ad strategies
  • National advertisers or agencies
  • Investors in local media or vendors that sell products/services to local media companies.
Pages 18
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