As per the current scenario, the online service marketplace has a bright future due to its simple but advanced business model. Many entrepreneurs are looking for a ready-made solution or software to develop a unified service marketplace platform where service providers can list themselves and service seekers can hire them to do the required job.

Types of Service Marketplaces:

  • Home services marketplace (The global home services market is expected to reach $1.2 trillion by 2026, growing at a CAGR of 9.3% upto 2026 according to a report by the Valveandmeter.) Example of a home service marketplace is HomeAdvisor.
  • Wedding services marketplace (Example of a wedding service marketplace is WeddingWire.)
  • Freelance services marketplace (Example of a freelance service marketplace is Upwork.)
  • On-demand beauty services marketplace (It’s predicted that the On-demand beauty services industry is expected to reach $46 billion in the US market). Example of a beauty service marketplace is Glamsquad.
  • Education-based service marketplace (Example of an education-based service marketplace is TakeLessons.)
  • Laundry and dry cleaning services marketplace, It is expected to reach $96.155 million by 2024. Example of the Laundry and cleaning services marketplace is Marketplace Cleaners.

Advantages of online service marketplace?

  • Cost-effective
  • No need for a physical location
  • No need for expensive marketing and advertising strategies
  • Reduces operational expenses

Several entrepreneurs and businesses have recognized this opportunity and leveraged it for their benefit.

Let’s discuss the business model of an online service marketplace:

  • Job/service seeker posts a job on the portal.
  • Taskers apply for job and quote price.
  • Seekers pick the best tasker, according to his/her requirements.
  • Tasker delivers the work and gets paid.
  • Service website/marketplace owner earns a commission on every successful job completion.

See the image for more clarification:

See the explanatory video for more insights:

Why launching an online service marketplace is the best business idea for 2023?

“The global online on-demand services market will grow up to $1,574.86 billion during 2023–2024.”

Additionally, The success of the following platforms also reflects a signal on why we should invest in this business idea:

Thumbtack, TaskRabbit, Upwork, Freelancer, etc.

Revenue model involved in the service marketplace business:

Clarity of earning is a must while selecting any business model. So here are the three types of revenues that you can earn while running an online service marketplace platform:

  • Transaction revenue model
  • Lead revenue model
  • Subscription revenue model

From where we can get the best software to launch an online service marketplace?

It is a challenging task to find perfect software. In the same direction, I have found the top 5 software that can be considered.

While selecting anyone from these five I recommend you to check their features, portfolio, what other services they are offering, pricing module, etc.

Final Words

Market stats and various reports are clearly giving a green signal to launch an online service marketplace platform. Now, the ball is in your court- take a market-backed decision and fulfill your dreams of becoming a successful business owner.