In the sexy topic of on-demand, business models hinge on a decidedly unsexy feature: logistics. Logistical systems — like Uber’s matching algorithm — connect buyer & seller and execute fulfillment or delivery of a service. This was the topic of a a session at the recent BIA/Kelsey NOW (video below).
In a lot of on demand models, we’ve learned that there’s razor thin margins because you have a three sided marketplace of consumer, provider and on-demand marketplace. Though the unit economics are sometimes favorable, those three stakeholders cause margin compression.
So an on demand marketplace flies or dies based on how well these logistical systems accomplish efficient delivery and fulfillment. Part of that is network effect which can thrive in population-dense urban areas. But to make these systems really hum, it’s all about consumer data at “intimate” levels.
That’s where Placed and RenderAI come in. Though attacking consumer data from vastly different angles — location data and video consumption — the common thread is intimate consumer data. The goal: on-demand insights for marketers and enterprises to make smart product decisions on the fly.
We discussed the “how”on stage at NOW, during a session entitled Building Customer Intimacy, Part II. You can watch whole thing below.
