What founders need to know
On-Demand vs. Marketplace
In ondemand, you interface with the company and don’t choose the person helping you.
The brand gets the credit and the blame
In a marketplace, individuals get blamed if things go wrong
Unit Economics = IMPORTANT
Not every industry can support an on-demand economy. The costs for on-demand are higher and the company needs to make money.
Homejoy: Example of failed unit economics
Homejoy lost money on transactions and failed to retain users.
It's a land grab
While it’s unclear if ondemand economies are winner take all, getting to scale and controlling the marketplace is extremely important.