The On-Demand Economy: Mobile Apps That Deliver Convenience Boost Payments Volume


On-demand economy spurs customer engagement and mobile payment growth.

New research from Mercator Advisory Group assesses four popular segments of the U.S. On-Demand Economy.

Author: Raymond Pucci
Published on: August 1, 2017

Services such as Airbnb, Grubhub, Peapod, and Uber have made the “on-demand economy” part of the daily life-style routine of many U.S. consumers. Combining the versatility of mobile app technology and a seamless payment experience, on-demand services are rapidly expanding across the U.S. retail landscape. Vertical markets taking full advantage of on-demand business models include ride hailing and sharing, restaurant meal delivery, grocery and household products delivery, and short–term home and apartment rentals.

A new research report from Mercator Advisory Group, The On-Demand Economy: Mobile Apps That Deliver Convenience Boost Payments Volume, describes the most popular on-demand services categories and how the key providers are bringing a new dimension in customer engagement to their markets. Many of the on-demand providers have become industry disruptors and are being met with challenges from legacy competitors and government regulators alike. But U.S. consumers are voting with their wallets and are propelling on-demand businesses to record levels of purchase transactions.

“On-Demand not only brings immediacy and convenience to U.S. consumers, but the services also enrich the customer experience that results in enhanced loyalty and sustainable customer relationships. Additionally, both legacy and emerging payment providers are benefitting from the increased volume of purchase transactions being generated daily by On-Demand services” commented Raymond Pucci, Associate Director, Research Services at Mercator Advisory Group and author of the report.

This report is 19 pages long and has 7 exhibits.

Companies mentioned in this report: Adyen, Airbnb, American Express, Amazon, Barclaycard, Blue Apron, Costco, Didi Chuxing, Discover, DoorDash, Drizly, Eat 24, Expedia, First Data, Fresh Direct, GoBank, Green Chef, Grubhub, Hello Fresh, HomeAway, Ingenico, Instacart, Kroger, Lyft, Mastercard, McDonald’s, Meijer, Panera Bread, Peapod (Ahold Delhaize), Plated, Postmates, Priceline, RushOrder, Seamless, Schnuck’s Markets, Shipt, Starbucks, Stripe, Target, Trip Advisor, Uber, Verifone, Yelp, Visa, Walmart, Whole Foods, Wegman’s, VRBO, and Yelp.


Highlights of this report include:

  • A review of popular on-demand mobile apps categories and leading providers
  • Market volume projections by category
  • How on-demand drives payments transaction volume
  • Implications for mobile wallet stakeholders
  • Relationship between the on-demand economy and the gig economy
  • Future opportunities and challenges for on-demand services



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