The on-demand economy is now evolving into the negotiate-on-demand economy. The impact for consumers will be profound, with providers now expected to compete on time and price directly, and to utilize services and platforms to advertise themselves as fastest and most affordable.

Take, for example, the health and wellness sector, which is already being blown wide-open by the negotiate-on-demand economy. Soothe, which recently raised $40M+ in venture funding, serves as a platform where consumers can choose a masseuse on-demand for at-home service, and therapists compete on timing and price. A prime competitor, New York-based Refresh Body, which is backed by the founder of Lululemon, is also helping to drive health and wellness more rapidly and affordably to consumers.

"Health and wellness is a natural fit for the on demand economy given that much of the industry is currently serviced by independent providers looking for a better way to interact with their clients and build their businesses. The issue for companies entering the space is that the lessons learned from industries like transportation or delivery don't necessarily apply. Specifically speed and size of network are not nearly as important as quality and curation," said Logan Sugarman, CEO of Refresh Body.

Other sectors, such as on-demand car pickup, are now evolving into a free-for-all of open competition. Uber, which once dominated the market, is now pressed hard not only by Lyft, but also rapidly rising and well-financed startup competitors, like Carhoo, which are rapidly reducing the industry's margins. The question becomes: how low can those margins go?

And it's not just competitive choice platforms and now low margins that help consumers. The negotiate-on-demand economy isn't just limited to direct-to-consumer, it will eventually evolve into service negotiation for small businesses and corporations. Companies expecting vendors to compete on time and price can now outsource that negotiation to consultants or startups. One such startup, Negotiatus, reports an average savings of over 25% for its clients.

"We built Negotiatus to be an e-commerce platform catered specifically to business needs: price, brand sensitivity, shipping and logistics, and billing.  The result is a one stop shop where businesses get exactly what they want, when they want it, for an average 20% less," said Tom Jaklitsch, CEO of Negotiatus.

Published on: Mar 22, 2016