“The On-Demand Economy is defined as the economic activity created by technology companies that fulfill consumer demand via the immediate provisioning of goods and services.”

On demand economy is a whole world of possibilities. Some say that the on demand economy is the beginning of a revolution that is already taking place in some of the US’s biggest cities. On demand economy is the process of having needs and services met through a convenience medium allowing on demand work. Most are able to take part in this on demand process with the touch of a couple of buttons. Some of the first on demand services included getting food brought to your doorstep. Now, you can have a doctor at your door within two hours, have people pick you up in their own cars, have people come and clean your house, or get it remodeled, have your groceries ready to pick up outside the grocery store, have on demand valet parking where is most convenient for you, have your purchased furniture assembled for you. The list goes on and on. 

“They have created a plethora of on-demand companies that put time-starved urban professionals in timely contact with job-starved workers…”

There are three issues that this on demand economy is currently facing. One of those issues includes the safety of the consumer, or the one buying the service. When companies hire free lance employees, credentials and safety have blurred lines. ‘Uber’, for instance, uses regular people who chose their hours to work to pick up people like cabs, but the employees use their own cars and set their own hours. ‘Uber’ has been banned in some places after one consumer was raped by an employee.

“Today a growing group of entrepreneurs is striving to bring together computer power with freelance workers to supply luxuries that were once reserved for the wealthy.”

Another issue the on demand economy is facing is that of accountability. When things go wrong, who does the consumer sue? Since the contracted employee is freelance, this creates issues with where the liability falls in terms of accidents, or unsatisfied customers. If you are an on demand company, it is unlikely that you would have a customer service department to cut down cost and employees in the overall business. 

“Using the now ubiquitous platform of the Smartphone to deliver labor and services in a variety of new ways will challenge many of the fundamental assumptions of 20th-century capitalism, from the nature of the firm to the structure of careers.”

The last issue facing the on demand economy is worker classifications. What this means is that freelance employees are cheaper, and easier to hire. Yet when the company denies its employee’s worker benefits, what happens? Lawsuits have ensued when workers are denied benefits. Independent contractors do not have to deal with minimum wage or overtime law. But because of this, they do not get disability or unemployment insurance. When workers get hurt on the job, whose fault is it? And who pays the bills? These are all things that the on demand economy is currently working out.

The on demand economy is sky rocketing with the use of smart phones and technology that hook people up with outside resources. Although the on demand economy is facing issues like safety, accountability, and worker classifications, the convenience is what people want. Companies are working these issues out so that in the end, the consumer gets on demand services met, and the companies make higher profits with freelance employees.