The online service marketplace is one of the hottest industries in the United States.
In 2018, over 86.5 million Americans used an on-demand service.
Online service platforms allow businesses or individuals to connect with service providers.
With the rise of the gig economy and the increasing popularity of on-demand services, they are expected to gain a market share of $4.75 billion from 2021 to 2026.
It is a highly competitive industry in the United States, with many players vying for market share. Let's take a look at some of the biggest service marketplaces.
Thumbtack Online Marketplace Connects Homeowners to Services Professionals
With an average of around 7.2 million visitors monthly, Thumbtack is one of the most recognized service marketplaces in the United States.
The platform connects homeowners to local professional service providers and takes in $150 million to $200 million annually.
Users of the platform can easily find various service providers, from home cleaners to massage therapists, carpenters, college application consultants, and DJs.
With Thumbtack's business model, the company charges service providers for leads. New customers reach out to learn more about working with a particular service provider.
The cost of leads varies, depending on the market, project size, and how many professionals compete.
Uber Service Continues to Dominate the RideShare Market
When it comes to rideshare companies in the United States, Uber still dominates the market at 72 percent.
The company, launched in 2009, gathers as much as 60.8 million visitors monthly and receives an annual revenue of $1 billion.
The company was co-founded by Garrett Camp, who recognized the value of having a fleet of black cabs pick him up from bars and clubs amidst the difficulty of ordering cabs in California.
Uber uses what we offer as a multisided platform business model that connects riders looking for cheaper transportation to drivers looking for an extra source of income.
Doordash Leads as Top Restaurant and Delivery Service
Launched in 2013, DoorDash ranks as the top service marketplace for the Restaurant and Deliveries category.
DoorDash operates by partnering with local restaurants to deliver food to homes and businesses.
DoorDash's freelance delivery riders deliver orders made on the app or website called Dashers.
This partnership is convenient and makes it easier for restaurants to enter the food delivery business without hiring riders.
The company has earned a 59 percent market share of meal delivery sales in the United States for May of 2022.
DoorDash's revenue model is a combination of commission and subscription fees. The company also earns money from its advertising and catering services.
Fiverr Starts with Eight Service Categories and Grows to Over $300 Million in Revenue
When the platform was started in 2010, Fiverr only had eight service categories to work with.
The website, which connected businesses and individuals with freelancers offering digital services starting at $5, has grown into over 500 service categories, 4.2 million active buyers, and generated annual revenue of almost $300 million in 2021.
Fiverr's growth and that of its competitors can be attributed to the continued success of the gig economy.
Fiverr earns revenue through commissions from the gigs that freelancers complete.
The buyer pays the platform in advance, and when their gig order is completed and delivered, the seller keeps 80 percent of the order total.
BetterHelp Marketplace Transforms the World's Online Therapy
BetterHelp, the world's largest online therapy service, sits at the third spot under the Mental Health category in the United States.
The website matches individuals and couples with the 25,000 licensed, board-accredited counselors working with the platform.
BetterHelp, owned by Teladoc Health Incorporated since 2015, has generated $700 million in global revenue in 2021.
Users of the platform are charged $60 to $90 per week for their therapy sessions, which they can access through exchanging messages, chatting live, video conferencing, or speaking with their counselors.
Counselors, on the other hand, are paid for meaningful engagements with their clients. These engagements can vary from direct chats, live video sessions, journaling, and other similar activities.
As the on-demand economy grows, service marketplaces will become increasingly popular.
There is potential for businesses to spearhead a previously untapped niche in the digital world.
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