on-demand economy - influencers dinner packet
DESCRIPTION
Statistics shared with mobile commerce industry leaders at The On-Demand Economy inaugural event on 7/1/14.TRANSCRIPT
EMPOWERING THE BUSINESSES THAT ARE REDEFINING COMMERCE
INFLUENCERS DINNER
7/1/14
The On-Demand Economy is a member-driven organization of mobile
commerce executives, thought leaders, service providers, journalists,
investors, and consumer advocates.
We are experiencing a revolution enabled by new technologies and shifting
consumer habits, spurring “The On-Demand Economy.” Mobile businesses
are rapidly changing industries, cities, and lives, and smartphones are
becoming the remote controls that allow us to navigate our daily lives. We
believe mobile spending will represent the fastest and most
transformational shift in consumer spending seen in history.
The On-Demand Economy will serve as an unbiased platform to meet
influential industry participants, collaborate with like-minded businesses,
address collective issues, and provide access to research and data for all
members.
Discover, celebrate, and learn from this innovative new industry that is
redefining commerce by making lives around the world easier and more
convenient.
Table of Contents
3
I. The On-Demand Economy
II. Grocery Survey
III. On-Demand Influencers’ Survey
IV. On-Demand Mobile Survey
© The On-Demand Economy
4
7
13
23
I. The On-Demand Economy
4 © The On-Demand Economy
5 © The On-Demand Economy
On-Demand Framework
5
Fact Sheet
6 © The On-Demand Economy
0
4
8
12
16
20
0
500
1,000
1,500
2,000
2,500
Nu
mb
er
of
Bu
sin
ess
es
To
tal In
vest
nts
(000's
)
Industry Sector
On-Demand Investments
Previous 5 Years
Previous 12 Months
Number of Businesses
On-Demand Pioneers
0%
20%
40%
60%
80%
Mobile Commerce Categories To Experience The Most
Explosive Growth Over The Next Three Years
0%
10%
20%
30%
40%
50%Reasons For Trying Online Grocery Shopping
Source: Data as of 6/30/14 compiled from AngelList and Crunchbase by On-Demand Economy Researchers
Sources: National Restaurant Association, Euromonitor, GrubHub, AngelList, Crunchbase, Mobile Commerce Daily, IBISWorld, TechCrunch
US Total Addressable Market ($B) $683 $11
Total Capital Invested in Past 5 Years
($B)>$1.1 >$2.1
Number of On-Demand Companies
(globally)>20 >25
Representative Businesses
Monthly Active Users (000’s) >3,800 >450
Total Global Revenue in 2013 ($M) >$1,000 >$1,000
Estimated Growth Rate (per year) >50% ~200%
Gross Margins (% of Rev) 10-15% 20-25%
Mobile Transactions (as % of Total) >40% 100%
Food
Delivery
Ground
Transportation
II. Grocery Survey
7 © The On-Demand Economy
Grocery Survey
8
The On-Demand Economy surveyed 250 shoppers on
6/12/14 - 7/1/14 at Trader Joe’s and Whole Foods in
NY who were in the store but had previously
purchased groceries online
Grocery delivery services such as Instacart,
FreshDirect, and Postmates have raised over $372M
in funding with nearly 40% raised in the past year
The On-Demand Economy’s goal was to determine
the online groceries consumer’s:
Mindset when purchasing groceries online
Preferred medium for ordering online
Rationale for purchasing groceries in the store
versus shopping online
Overview
© The On-Demand Economy
Male 38%
Female 62%
Gender
<20 2%
20-35 55%
36-50 32%
50+ 10%
Age
9
20% of respondents have purchased
groceries online through their mobile
devices
© The On-Demand Economy
63% of respondents who have purchased
groceries through their mobile devices are
under 35, with only 13% older than 50
63%
13%
0%
10%
20%
30%
40%
50%
60%
70%
<35 >50
Age
Age of Shoppers Purchasing Groceries Through Their Mobile
Devices Mobile 11%
Not mobile 81%
Both 9%
Are Shoppers Ordering Groceries Through Mobile?
Young Shoppers Dominate Mobile Grocery Shopping
Mobile Grocery Shopping
Why Are They At The Grocery Store?
10
30% of respondents noted “being in
the neighborhood” as one of their
main reasons for not ordering online
Only 6% of respondents reported
having a bad experience with a
previous online order
They’re In The Neighborhood…
© The On-Demand Economy
30%
25%
19% 18%
13% 11% 11%
9% 6% 5%
0%
5%
10%
15%
20%
25%
30%
35%
Rationale For Choosing Not To Purchase Online
11 © The On-Demand Economy
46% of respondents cited the
convenience of deliveries as one of
the main reasons for trying grocery
delivery services
23% of respondents noted avoiding
the hassle of carrying groceries as a
key reason for trying online grocery
delivery services
46%
23% 22% 19% 18%
16%
10% 8%
6%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Reasons For Trying Online Grocery Shopping
Why Try Purchasing Groceries Online?
Convenience Is King!
12 © The On-Demand Economy
35% of mobile grocery shoppers
noted incentives as one of their main
reasons for trying the services, as
compared to only 15% of Non-Mobile
shoppers
The Influential Power of Incentives for
Mobile vs. Non-Mobile Grocery
Shoppers 35%
15%
0%
5%
10%
15%
20%
25%
30%
35%
40%
Mobile Not Mobile
Transaction Method
The Power of Incentives
Mobile Incentives Are Key to Customer Acquisition
III. On-Demand Influencers’ Survey
13 © The On-Demand Economy
14 © The On-Demand Economy
19 on-demand service executives and thought leaders
were surveyed by The On-Demand Economy on
6/23/14-7/1/14
These surveys were conducted by The On-Demand
Economy with the intention of:
Uncovering new trends and opportunities through
the collective wisdom of those who know the
space most intimately
Developing a collaborative viewpoint on persistent
questions and concerns related to the industry
Highlighting commonalities between a wide range
of on-demand services
On-demand business
executives
On-demand business
investors
On-demand industry 3rd
party service providers
Survey Participants
On-Demand Influencers’ Survey
Overview
15 © The On-Demand Economy
Over valued 63%
Under valued 37%
Uber's Valuation
n= 19
Uber’s Valuation
Is Uber at $18.2B Over Valued?
16 © The On-Demand Economy
Expected Compound Annual Growth Rate (next 3 years)
0%
10%
20%
30%
40%
<10% 10-19% 20-29% 30-39% 40-49% 50-59% 60-69% 70-79% 80-89% >90%
Perc
enta
ge o
f R
esp
on
ses
US M-Commerce Compound Annual Growth Rate During The Next Three Years
n= 18
The Rapid Growth of Mobile Commerce
2x Expected Growth Over Next 3 Years
0.0%
10.0%
20.0%
30.0%
40.0%
16-19% 20-24% 25-29% 30-34% 35-39% 40-44% 45-49% >50%
M-Commerce Spend As a Percentage of Total US Digital Spend (E-Commerce & M-Commerce) in 2016
17 © The On-Demand Economy
16%
Estimates as
reported by
eMarketer
Percentage of M-Commerce Spend/Total
n= 18
Mobile Commerce Spend In 2016
61% Believe M-Commerce Will Comprise >30% of Total Spend
18 © The On-Demand Economy
0%
10%
20%
30%
40%
50%
60%
70%
80%
Industry That Will Experience The Most Explosive Growth Over The Next Three Years
n= 18
The Future of Mobile Commerce
67% Believe Grocery Industry Will Experience The Most Growth
19 © The On-Demand Economy
n= 18
No 61%
Yes 39%
Do You Feel That We Are In a Bubble?
Do You Feel That We Are In a Bubble?
61% Do Not Feel That We Are In a Bubble
20 © The On-Demand Economy
Yes 89%
No 11%
Is Mobile What Makes The On-Demand Economy Possible?
n= 18
The Impact of Mobile On The On-Demand Economy
89% Believe Mobile Makes The On-Demand Economy Possible
21 © The On-Demand Economy
0% 10% 20% 30% 40% 50%
Government support
Other (betterexperience)
Collaboration betweenindustry participants…
Continousimprovements in…
Adoption in secondaryand tertiary markets
Appetite forconvenience in…
Factors of Success For The On-Demand Economy
Percentage of Responses
n= 18
Factors of Success For The On-Demand Economy
33% Believe Appetite For Convenience In Primary Markets is Key
22 © The On-Demand Economy
0% 10% 20% 30% 40% 50%
Availability of financing
Future market demand
New regulations
Technical resources
Existing competition
Current market demand
Operational resources
New competition
On-Demand Worries: Investing and Operations
Percentage of Responses
n= 18
On-Demand Worries: Investing and Operations
39% Are Worried About New Competition
IV. On-Demand Mobile Survey
23 © The On-Demand Economy
24 © The On-Demand Economy
Surveys conducted by The On-Demand Economy on
11/3/13-11/6/13 with over 9,000 smartphone users in the
act of using a mobile application
These surveys were conducted by The On-Demand
Economy with the intention of:
Assessing awareness levels of on-demand
services within core demographics
Exploring how consumers engage with mobile
applications
Smartphone owners
Primarily urban dwellers
Mobile application users
Survey Participant Profile
On-Demand Mobile Survey
Overview
25 © The On-Demand Economy
22% 20% 24% 21% 24% 23%
27% 22%
78% 80% 76% 79% 76% 77%
73% 78%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Total NY LA CHI DA BOS SF Other
Awareness of Uber By City
Unaware
Aware
n= 9156
Awareness of Uber By City
22% of Smartphone Respondents Have Heard of Uber
26 © The On-Demand Economy