An On-demand service booking platform is a technology-driven platform which integrates online demand with offline supply of services. It is where customers and service providers meet to enable transactions. As simple as it may seem, an on-demand service booking platform definitely generates service requests from customers which are heeded to and accepted by available service-providers. But the process is not just about a simple transaction. It is way more than that!

When scrutinizing from a business perspective, the future of on-demand services industry is as bright as it is now. The $214 billion turnover it has generated over the last year proves the potential possibilities it holds within. Besides, experts expect it to grow at a CAGR of close to 49% during the forecast period(2017 – 2021) and reach $435.41 billion revenue. All these facts and figures reflect how promising an industry on-demand services marketplace is.

On-demand Service Market

On-demand Services Marketplace – Business & Revenue Models

A business model is your plan for running the business, which discusses revenue sources, the intended customer base, products, and details of financing. When it comes to on-demand services booking business, many proven business models like TaskRabbit, Thumbtack etc has already some idea of what works and what doesn’t. However, our demands, goals, and capacities are different. Choosing the right business model can influence your business performance and efficiency, it determines the success of the idea you clung onto.

Transaction-Based Model

This is the most common and widely used model, in which the marketplace receive a portion of money from every successful transaction. In simple words, the more sales you generate, the more revenue you bring in. For instance, TaskRabbit works on this model. Their huge success gives us the strength to move on with this business model.


The most desirable thing about this business plan is both customers, as well as the service provider, doesn’t have to pay any amount of money priorly. They will pay only if the service is provided. Moreover, this business model encourages more service suppliers to join the platform and thus maintain the marketplace supply.

Lead-Based Model

Unlike the transaction model, lead-based business model demands money from the service providers upfront. They should have to pay for sending a quote to the customers. The marketplace makes introductions between the customers and professionals based on the specific needs of a project. The professionals who confirm the request will make bids for customers to choose from. The actual cost depends on the service requested.


Thumbtack, one of the prominent name in the industry has failed toconvert its transaction business model into a success because of the low degree of commoditization. Later then, they adopted the lead-based model and acquired great success.

Subscription Based Model

Subscription model usually comes in packages. It allows users to request a service for a prolonged period of time. Customers are billed on a recurring basis and receive their services at the same time every month or as per their convenience.


The main benefit of adopting this subscription model is that, once the customer signs up for a service, they are most likely to stick around for a long period of time or at least until you deliver decent services. Besides, it is simple to predict the revenue and understand the customer behavior patterns.

How does Agriya’s Online-demand Services Marketplace Solution works?

Agriya, a specialist in deploying industry-specific has introduced an excelling On-Demand Service Booking Solution.  It can be employed by businesses as well as individuals to easily set up an on-demand marketplace. It functions based on ‘transaction business model’, it demands no payment prior to the service reception.

Service booking demo

Service professionals can list their services free of cost. Users can browse through the categories or even use the advanced search option to find their desired service. They can further request the service from the business provider.

Users can specify a convenient date or time and initiate the payment. The payment will be kept in an escrow account until the work is done and will be transferred to the service provider’s account as they finished their tasks. The marketplace gets a particular portion of the money for each successful business.

There are multifarious on-demand service booking platforms available which cater to different segments of the service industry. And each platform has distinctive features & processes in terms of its functionality. However, there are few processes common to all such platforms.

Here we make an elaborate listing of all the essential features & processes involved in on-demand service booking :

Generating a Unique User Identity/ Verification of Service-Providers

There are many security concerns while operating business transactions online. Probabilities for online phishing, hacking, identity thefts and availing benefits by unfair means are high. So it is imperative to create a unique & distinct User Identity so as to ensure a single distinct account for each user. A customer’s identity can be registered through his phone number and his unique email id. Customer ID verification is crucial for preventing misuse and tampering.Again, it is equally essential to have a stringent verification process for service providers.

“The Matching Algorithm”

An ability to determine and match the right customer with the right service providers is intrinsic to the success of On-Demand Service providing platforms. Matching can be done either automatically or manually. In automatic matching, a customer’s choices are automatically fed through the application code. In manual matching, a customer’s requests can be registered manually by the system administrator which he can manually match with the available services or service providers.

Fixing & Scheduling Appointments

Time is a major determinant in case of On-Demand Services. So sticking to the customer’s time boundaries is an inevitable factor. Customers are therefore provided the lease to fix their appointments with valuable service providers. There are broadly two ways you could do this: Schedule Now or Schedule Later. As simple as it goes, you may either prefer to avail your service instantly or fix a future time for the same.

An instant Notifications Framework

Generating a Real-Time Notifications Framework is the crux of a successful two-way business interaction. Every On-Demand Service Booking Platform tries to ensure a profitable direct interaction between customers and service providers. A typical Notifications framework includes the customer & the service provider concerned, an event that triggers the communication, a mode of communication, the message and a following course of Action.

Tracking of Locations

Accurate determination of locations is again indispensable for tracking service providers, customer-locations & navigation. This has become possible through Geocoding and Reverse GeoCoding. User’s locations are tracked through his phone’s GPS.

A secure Payment structure

Secure payment gateways and wallets are crucial factors for payments. An On-Demand Service platform needs to ensure this as well. Payment stages and categories may differ depending on your business model.

Concluding Lines

The On-Demand Service platforms are a lucrative way to secure a profitable enterprise. There are various means to this end. The Platform can earn by requesting a nominal membership charge. Service Professional may also have to pay for applying for a particular job. The service provider may earn commissions from the service providers as well as implement ad-based monetization.

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