Global Statistics Representing Mexico Online On-demand Home Services Market Scenario
Mexico online on-demand home services market offer a range of services within the comfort of home as well as save time and money. Additionally, these services help in bridging the gap between the real-world services and instant online services with improved efficiency. Recently, the demand for Mexico online on-demand home services marekt has started witnessing huge growth due to convenience and accessibility. The growing rate of internet and smartphone penetration is further increasing the demand for the market. Consumers can access these home service using a website as well as an application. The home services include domestic services, online shopping, and transportation.
Mexico online on-demand home service market by mobile application is expected to grow at CAGR 16.6% during the forecast period 2019–2026.
Mexico Online On-demand Home services market is expected to witness significant growth owing to growing mobile commerce platform in Mexico. This is majorly attributed to growing number of internet and smartphone users due to increased internet penetration as the cost of mobile and internet is declining day by day. According to the Institute of Statistics, Geography, and Informatics (INEGI), about 65.5 million Mexicans are now using the internet. Among the total population of internet users in Mexico, 61% are active mobile internet users. As internet penetration is growing across Mexico, all related industries such as online on-demand services are witnessing massive growth and are projected to continue the same in the coming years.
The online on-demand domestic work is rising in Mexico due to changing demographics, social, and employment trends. This mainly includes women working outside the home, decline in the public provision of care services, and disappearance of extended family support. In 2017, Mexico had about 2.7 million domestic workers, of which more than 90% were women. As per the report of Aliada, the domestic workers who gain access to the Aliada app immediately improve their earning potential and their working conditions.
The Mexico online on-demand home services market is segmented by platform, service, end user, and region.
On the basis of Platform, the Mexico online on-demand home services market is segmented by Online website and Mobile applications. With the advanced technology, personal data of consumers through their search preferences from the company’s websites is being gathered, processed, and stored by online marketplaces. According to the National Institute of Statistics and Geography (INEGI), Mexico had over 70 million internet users and 17.4 million household users, viz. 50.9% of the total population in 2017. This shows increasing acceptance and adoption of online services from the middle-class population in Mexico.
By Service, the Mexico online on-demand home services market is segmented by domestic services, online shopping, and transportation. With the increasing usage of the internet, consumer becoming more dependent on online services. Personal care service providers are taking this advantage and providing mobility solutions, cloud computing, wireless broadband, and others to this industry. For instance, salon industry has experienced steady growth in the past years due to increasing usage of online in-demand salon applications for providing booking appointment, email/message notifications, payment options, discounts/offers, loyalties, service price listing, photo library, salon details, salon cart, and others. Furthermore, In Mexico, Uber is the market leader in passenger transportation services that provides convenient door-to-door trips for those who either punctually or regularly require such services. Taxi rides can also be facilitated via app-based platforms – which are referred to as taxi app-based platforms. In April 2018, a China-based ride-hailing company “Didi Chuxing” has entered in Mexican market to provide passenger transport services. Mexican consumers using the internet and smartphones for online shopping such as food delivery, grocery, consumer electronics, apparels, and others is rapidly gaining prominence.
On the basis of End-User, the Mexico online on-demand home services market is segmented by Family and Professionals. Family segment is likely to hold the major share of Mexico online on-demand home services market as most of the home and family services stand under this section and provide various services. For instance, family services include child-minding, childcare outside the home, transport assistance for children, school help, home lessons, and IT and administrative assistance. Whereas, the home services include housework/ironing, gardening, Do-It-Yourself (DIY), preparing meals (including doing the shopping), delivering meals, delivering ironed clothes, delivering the shopping, home maintenance and watch, and voice and video assistance. Moreover, there are services for consumers like an elder, dependent, and disabled person for their assistance, nursing, beauty care, pet care and walks, minding mobility and transport assistance, driving the beneficiary’s vehicle, and transport/assistance outside the home. Professional services are the most versatile and broad sector that has experienced extensive transformation due to on-demand economy. College graduates and office employees are major the shareholders of Mexico online on-demand home services market users. The professional sector has maximum potential due to the inclusion of different services as a mechanic, carpentry, electrician, pest control, and plumbing. Moreover, it provides specialized services such as software programmers and designers.
Mexico has attained significant growth in the number of internet and mobile phones users, owing to favourable telecom reforms such as the right of access to information and communications technology, telecom, broadcast, broadband and Internet services, the creation of a public agency to provide broadcasting services and others. This has significantly contributed to the reduction of data price, thereby fuelling digital technology. According to Mexico’s Institute of Statistics, Geography, and Informatics (INEGI), about 65.5 million Mexicans are now accessing internet services. More than 70% of the population in the cities such as Sonora and Baja California are using the internet.
Furthermore, according to International Labour organizations, Mexico has more than 2.3 million domestic workers with more than 90% women. These workers are grossly underpaid without any kind of social security. To address this issue, Aliada Inc. has introduced an internet-based application that allows domestic workers to choose their location and time of work, and provide them with better wages, healthcare, monthly bonuses, and other facilities.
All the above factors have contributed to the growth of on-demand start-ups for transportation and food delivery, among others. Uber is one of the majors on-demand service providers that has attained an immense growth in Mexico and has evolved as a dominant player in the country. For instance, the company has come up with a key innovation in the product, which mainly includes a real-time SOS system, safety monitoring, round-the-clock user support, and a multivariable driver rating system and others. Additionally, Uber has also announced to invest about USD 6.8 billion for expansion in 10 New Mexico cities and increasing driver headcount to about 500,000.
Some of the prominent players in Mexico online on-demand home services market are Aliada Inc. (Mexico), BlaBlaCar (France), Cornershop Inc (Mexico), Mercadoni (Colombia), Etsy, Inc. (France), Postmates Inc (U.S.), Cabify (Spain), Uber Technologies, Inc. (U.S.), Rappi Inc (Colombia), Rappido (Brazil)
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