The comfort of control: unpacking the success of on-demand services
Discover the behavioural science behind some of the world’s favourite apps
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For millennials and Gen Zs, it is hard to imagine a world without on-demand services, The notion of walking to a video store to select that evening’s movie or trying to get through on a constantly busy phone line to your local takeaway restaurant feels quaint to them and, frankly, a cumbersome way of negotiating life.
Today, the on-demand economy is driving unprecedented growth – and not solely from a young cohort of users. According to Grand View research, the global online on-demand home services market size was estimated at $3.71bn in 2021 and is expected to expand at a compound annual growth rate of 16.7% from 2022 to 2030.
The sector owes much to behavioural science for its expansion. The magic lies not in the services themselves but in how they are presented to consumers, offering not just convenience but a profound sense of control and reassurance.
The rise of platforms like JustFix are testament to the psychological underpinnings of the on-demand world. Taxi service app’s real-time maps, for instance, transformed the waiting game by mitigating the human fear of the unknown.
Adam Graham, CEO and Founder of JustFix, a platform connecting individuals with local tradespeople, also saw his product born through human frustration. In Graham’s case, the fact that he accidentally locked himself out of his house – and the subsequent interminable online search for a locksmith – led to a eureka moment.
“I asked myself, ‘Why isn’t there a taxi service-style app for tradespeople?’ Booking a locksmith should be as easy as ordering a cab,” he says. “When it comes to lightbulb moments, great innovation often stems from seeing what everybody has seen and thinking what nobody has thought.”
Graham's story is a testament to how everyday annoyances can fuel innovation, leading to services that resonate deeply with consumer needs.
The on-demand sector's reliance on behavioural science extends beyond easing anxieties around waiting times. Marketing experts and behavioural scientists highlight the importance of giving consumers a sense of progress and control. Dr Nicola Eccles, a behavioural science expert who is helped to build a new health-tech app called On Wellbeing, points out that today's fast-paced lifestyle, especially among younger generations, demands products and experiences that are not only tailored to individual needs but also delivered in a frictionless manner.
“One of the biggest benefits is that by empowering users of technology and putting them in control – whether it’s through a wellbeing app or another on-demand service – we reduce both their cognitive load and their feelings of uncertainty,” she says.
The architecture of these services – from progress bars to order tracking – is deliberately designed to alleviate the discomfort of not knowing. Fast Food restaurant’s introduction of order screens and food ordering apps, which shows the progress of food delivery, serve as examples of how visibility into the process can transform the user experience. It is a subtle yet powerful way of putting consumers back in the driver's seat, even as they outsource tasks.
Ultimately, it is a stress reduction strategy says JustFix’s Graham. He points out that anxiety rises steeply from the moment a home maintenance issue is discovered, until the point at which a solution is booked in. If you can shorten the time between those two events, you can significantly reduce the stress for a customer. The JustFix interface is designed to get a customer to a booking in less than 15 seconds and dramatically reduce stress for customers every step of the way.
Of course, much of the on-demand world is underpinned by what has been termed the gig economy, with a workforce comprising freelance or ‘side-hustle’ workers. Some critics suggest that these individuals find it harder to develop in their careers due to the sometimes-sporadic nature of their work. However, an EY survey revealed that of those contingent workers (people operating in the gig economy) surveyed, a clear majority enjoyed the flexibility and control it gave and would not prefer full-time employment. Indeed, the on-demand economy, it could be argued, enables entrepreneurship and independence among a workforce that would otherwise be tied to one organisation.
The on-demand market is democratising access to services and breaking down barriers between consumers and providers. As the sector evolves, it continues to be shaped by the intricate dance between technology and human psychology. The insights from behavioural science are not just guiding product development but are also crafting experiences that feel intuitively aligned with human needs and desires. In this rapidly changing landscape, companies that understand and leverage these psychological principles are the ones that will thrive, creating services that not only meet practical requirements but also address deeper human cravings for control, certainty, and connection.