HOW IS DIGITAL TRANSFORMATION CATALYSING THE ON-DEMAND ECONOMY?

Digital transformation plays a major role in driving operational excellence, data-enabled adaptability and improved customer experiences across the on-demand economy.

By identifying novel ways to meet customers’ requirements in the most efficient and cost-effective way possible, on-demand economy has completely reshaped the face of food delivery, fast-moving consumer goods, transportation and home services.

Digital transformation has become synonymous with the on-demand economy, allowing users to engage providers without the need for personto-person interaction – a trend that has gained significant traction in the Middle East and North Africa (MENA). The region’s e-commerce market hit $37 billion in 2022, according to data published by EZDubai E-Commerce Zone. The fact that this figure is on course to reach $57 billion within the next three years suggests that – when it comes to digital transformation within the region’s ondemand economy – all are witnessing the tip of the iceberg.

But how exactly are advanced digital capabilities catalysing growth within the on-demand economy?

Seamless Operations

One of the most noticeable ways in which digital tools are facilitating change relates to operational excellence. For example, artificial intelligence (AI) is enabling on-demand service providers to automate a broad range of activities, from distribution and scheduling to billing and customer feedback. The upshot is a reduced requirement

MAYUR BOMMAI Co-founder and Chief of Global Logistics Laundryheap

for manual intervention, saving time, minimising mistakes and boosting efficiency.

The rapid adoption of mobile technologies is also playing a crucial role in this respect, all but removing barriers previously associated with location. Need to order a cab from the desert? No problem. Want to have lunch delivered to you and your family at the park? Not an issue. Looking for someone to collect your dry cleaning from your home or hotel? Simply open the Laundryheap app.

Operational improvements also appear to be having a positive financial impact across Gulf states. The digital economy of the UAE, for instance, is expected to hit $140 billion by 2031, according to Seed Group. Thanks to on-demand providers’ sustained investment in digital capabilities, the operational challenges of the past no longer pose an obstacle to delivery, resulting in a more flexible, accessible and efficient service economy than ever before.

DATA-ENABLED ADAPTABILITY

The lessons all learn from these activities feed into a virtuous cycle, wherein all can track the growth of their customer base, monitor demand across multiple demographics and use these insights to communicate with prospective users more effectively.

Exceptional Customer Experiences

Arguably the most important way in which digital transformation is changing the on-demand economy relates to the customer experience. Unparalleled connectivity, 24/7 access to support and continuously evolving digital capabilities are converging to create previously unimaginable levels of service.

l Digital transformation has become synonymous with the on-demand economy.

l Operational improvements appear to be having a positive financial impact across Gulf states.

l Today’s service providers are able to tap into a wealth of rich data.

l The most important way in which digital transformation is changing the ondemand economy relates to the customer experience.

Today’s service providers are able to tap into a wealth of rich data, meaning they can gauge business performance in real time.

Platforms like Laundryheap are going to great lengths to capitalise on this information, using cutting-edge analytics to inform both our day-today operations and long-term business strategy. This allow everyone to pivot quickly to market changes, ensuring all continue to exceed the expectations of users.

Data also plays an essential role in informing marketing activities, enabling to maximise the reach among those who are best placed to benefit.

The leading providers are working to create one-stop ‘super apps’ that cater to all their customers’ needs in one place. What’s more, forward-thinking organisations are using AI and data analytics to raise the bar without placing the burden on customer service agents. Hyperconnected platforms also make it easier for users to provide feedback, allowing providers to continuously hone their offerings and cater to the ever-evolving needs of their client base. This approach has been intrinsic to their ability at Laundryheap to meet customers’ needs and expectations.

When one considers how far their capabilities have progressed, it’s difficult not to get excited about the future. The formidable John F. Kennedy once said, “Change is the law of life and those who look only to the past or present are certain to miss the future”. Together with the team, looking forward to operating at the forefront of this transformation as the team makes further contributions to the evolution of the digital economy across the Middle East and beyond. n