In this burgeoning on-demand economy, market entrants have developed solutions that address activities previously perceived as dull or demanding. For instance, Wype brings car-washing services to you, at your convenience. Drizly offers cold alcoholic beverages, delivered within an hour, at the click of a button. KitchFix creates fully prepared, chef-crafted meals and delivers them to your front door. Cambly provides instant access to English tutors for non-native speakers through its 24/7 video chat app. Not to be outdone, Health is finding its footing, notching two spots in the On-Demand Top 10.
Given the increasing thirst for on-demand services, it’s no surprise that investment in these services is rising. From 2000 to present, more than 230 on-demand companies have raised a total of $12.5 billion. Across the $12.5 billion, investment is distributed into six primary categories:
Auto & Transportation - 76%
Food & Drink - 10%
Health - 6%
Household Chores - 3%
Logistics – 3%
Professional - 2%
Remove on-demand juggernauts like Uber and Lyft, and Health is among the leading categories of funding, representing one-fifth of total on-demand funding (2000 to present).
According to Accenture research, funding for on-demand health services will quadruple by 2017, growing to nearly a billion dollars in annual investment. Several accelerating forces will further propel the on-demand economy in health:
Government-mandated change. Large payers are now reimbursing for virtual visits—and government is backing the approach.
Attractive economics. On-demand, virtual visits simply cost less: 40 percent of the cost of the average PCP visit, 26 percent of the average urgent care visit and 4 percent of the average emergency room visit.
Technology maturation. The ubiquity of mobility and network connectivity is propelling the on-demand economy, with every consumer a potential user of services.
Cultural adoption. Consumers of all ages, including senior citizens, are demanding convenience and connectivity—and many want these experiences when it comes to their health.
Emerging care models. Payers want to create best-in-class benefits packages that introduce new products and services that will attract and retain members, while reducing medical cost.
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Already, pioneering organizations are creating new experiences that blend on-demand categories. Ecosystem permutations include combining the Food & Drink and Health categories. Imagine the clinical benefits when diabetics or heart disease patients have low-sodium, low-fat or vitamin-rich foods delivered to their door. By combining Auto & Transportation and Household Chores, consumers can successfully “age in place.” Even more, those in urban settings can take advantage of convenient Health services, such as in-home visits delivered to patients at home or at the office.
The industry will continue to transform as new entrants find ways to deliver cheaper, quicker and more convenient care. And, as investment in on-demand health services continues to accelerate, breakthroughs will disrupt the market, creating new social interactions and experiences. New, higher standards for service delivery will require organizations to shed the old ways of approaching healthcare, and rapidly accept the digital era.