How Newbies Should Find The Optimum Business Model For Their On-Demand Startup

How Newbies should Find the Optimum Business Model for their On-Demand Startup?

by WooberlyEats — 4 years ago in Business Ideas 3 min. read

When entrepreneurs set their foot to start an on-demand startup, they need to decide a sustainable business model for future business growth.

The business model should be optimal and help you in the further growth of the business.

To find the right business model for your business, you need to first know comprehensive information about the types of business models and know the factors that govern choosing a correct business model.

So, let’s look in detail the types of business models and the factors to choose the correct one.

Business models of on-demand 

Business to customer

The business to the customer business model is when you connect the well-established business owners to the customer through a platform. Examples of such business models are InstaCart, DoorDash.

Peer to peer platform

  • The peer to peer business model focuses on connecting property owners with the user. The owners are someone who occasionally uses the property.
  • The property will give an extra income to the owner.
  • The company which follows this model is the Turo. Users can book a car for rental for a day or hours depending upon their wishes.

Subscription business model

A subscription business model is when the users subscribe to business service for a time depending upon their interests and needs. For instance, the Postmates offer a subscription membership called the Postmates Unlimited where they provide $9.99 per month and $99.99 per year.

Business to the business model

There are on-demand platforms that provide service to other business companies instead of individuals. Platforms like ezCater provide catering services to corporate companies.

In this model, the target customers are the large, middle, and small scale companies.

Also read: Chromecast vs Firestick: Which Is The Better Streaming Device? (A Complete Guide)

Factors to choose the business model 

Market potential

The market potential is the size of the market for a given product or service at a particular period of time. It is usually measured by its sales number and the revenue collected per year or quarterly.

When you are starting your on-demand startup, you need to assess the potential of the market to know the time period you reach a peak in your sales numbers.

Target customers

You need to assign the target customers for your on-demand startup. The target customers can be classified based on the

  • Age group
  • Location of the customers
  • Whether your on-demand service is for the normal users or other corporate busines
  • Working profession

Revenue streams

your revenue stream is as important as finding your business model. Choosing the right revenue stream can bring profit when you achieve your business goals.

The revenue streams you can apply in your on-demand business model is the commission model, listing fee, or membership fee.


Competition can either boost your business growth or kills you without making it into the finish line.

You should study your competitors and keep a close eye on them on how they get their profit and strive to achieve their success.

Look at their SEO score – Analyze where they focus to keep their platform engaged.

Their overall website experience – how they convert their users into their platform.

Advertising – Watch how they advertise their platforms and how long they do it.

Check their online reviews given by their customers – Find the pros and cons the customers mention and see how active their customer service is.

Also read: Top 25 Digital Marketing Blogs To Follow In 2024

Wind Up

Hope you could get a clear idea about the on-demand business model and the importance to find the exact business and revenue model for the startup.

If you’re an aspiring entrepreneur and want to step up your business career in the on-demand industry, then, there is no other perfect time than this.  To succeed in this industry, let me suggest, create an innovative business plan and make an extraordinary online presence.


WooberlyEats is a readymade UberEats Clone solution that enables entrepreneurs to start their own business in a short span of time. It is built with a new technology called Flutter, gives the advantage of developing the platform at a faster pace at less cost. The owners can overlook and manage everyday orders and transactions that happen on the platform. It's flexible for all kinds of on-demand delivery business plans. It will be a perfect solution for startups and entrepreneurs who desire to start a food delivery business with a standard and user-friendly application.

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