Last Updated: 21st November, 2023
The past two years have been quite challenging for business owners considering the volatile consumer demand in global markets. However, with time there has been some stability in many industries, especially in their online models that facilitated quick recovery from the aftermath of the pandemic. Some of these industries are travel, education, on-demand services, rental industry, consultation and peer-to-peer.
Online business models in all these aforementioned industries are expected to generate the majority of the market share in the online service sector. Some other reasons why they are gaining traction are:
Considering these and all other benefits of launching an online business, we bring you the following online business ideas that are going to be immensely popular in 2024:
Note: Along with the business ideas, we also bring you the technology solutions that you can use to enter your desired industry and launch a fully-functional online marketplace or store. Kindly scroll to the bottom of this blog to find our solutions table.
Online tutoring services are increasing at a highly competitive rate of 15.6% CAGR in the period 2021-2028. As the pandemic fueled many online tutoring businesses, numerous educational institutions adapted to them and found online models significantly valuable to provide remote learning access to different corners of the world. Some other reasons behind the surge in online tutoring are the proliferation of the internet and global access to smartphones.
With the correct technology to access online information, school to college students and individual students find it easier to learn digitally via synchronous models. These eLearning models include live tutoring via chat, video conferencing or group streaming and help learners understand difficult concepts in real-time.
Some popular online tutoring businesses are:
|Company||Starting Year||Country||Funding (USD)|
|Varsity Tutors||2007||United States||107 Million|
|Preply||2012||United States||50.6 Million|
|Outlier||2018||United States||46 Million|
|MyTutor||2013||United Kingdom||38.9 Million|
|Cluey Learning||2017||Australia||20 Million|
|Tutorful||2015||United Kingdom||10.8 Million|
In contrast to online tutoring, online course businesses follow the asynchronous teaching method where courses and study materials are prepared beforehand and provided on the platform. It is via reading this material that students learn. To resolve any queries, learners need to revisit the course material or find out more resources on the platform or the internet.
Massive Open Online Course (MOOC) platforms, such as Udemy and Coursera follow the asynchronous teaching model where college professors curate online courses and upload them on the platform.
Multi-vendor marketplaces are asset-light businesses where the business owner is required to own minimum capital to conduct business operations. In general circumstances, he/she only provides the platform, customer support and handles administrative works. On the other hand, it is individual vendors and merchants who upload and sell their products on an online marketplace.
The business owner of a marketplace platform earns via various methods with sales commission and membership subscription being the most common. Other revenue streams can be paid advertisements, display listings, gift cards, etc.
As per Finextra report, B2C online sales via marketplaces are forecast to increase by a 14% CAGR to USD $4.7 trillion by 2025, implying huge potential in starting an online marketplace business in 2024.
Dropshipping businesses are proliferating at a rapid rate. This is because the dropshipping model is also an asset-light model where the business owner only needs to purchase inventory after an order is placed. In this type of business, there are usually two main entities involved, which are the dropshipping store owner and the supplier.
Whenever a customer places an order on the dropshipping store, the business owner informs the supplier who then packages the product at his own warehouse and ships it directly to the customer. This way, the business owner does not have to manage warehousing and shipping nor bear the risk of loss by only purchasing inventory after the order has been placed.
The online classifieds business model is one of the oldest existing online business models. On an online classifieds marketplace, different people sign up and upload listings for sale and purchase of second hand products. Once they find a required product, they contact the seller through the platform, clear any queries and discuss the mode of payment and delivery.
Online classified platforms earn through several revenue generation channels such as selling commission, paid listings, membership subscriptions, display ads, pickup and delivery charges, and more.
The P2P car rental industry is witnessing significant growth in global COVID lockdowns. With people owning multiple vehicles and due to work from home restrictions, car owners are finding renting out their idle vehicles a reliable and lucrative source of revenue generation. According to GM Insights, the online car sharing industry is growing at a very high CAGR rate of 20% in the forecast period 2021-2027, indicating a huge potential in launching a P2P car rental business.
There are different types of boats that people rent out on an online boat rental platform. The main reasons behind the activity are for recreational purposes and traveling. The scope of business in the industry is also very transparent with a CAGR rate of 5% in 2020-2025. Apart from this, day cruisers with length ranging from 21 to 25 have the highest market share. As boats are a very expensive capital and often used occasionally by boat owners, it is common for owners to rent them out on a peer to peer boat rental platform.
Western countries with lakes and rivers are the top markets to launch an online boat rental business. This business will be similar to a P2P car rental business with rental commission being the primary source of revenue generation.
The online dress rental industry is also booming in designer wear rental, bridal wear rental, fashion rental and costume rental markets. Marketplaces like Rent the Runway and The Style Lease are proven successful business models for the dress rental industry where customers can rent out dresses for 4 to 8 days.
On a peer-to-peer dress rental store, customers can rent out different types of outfits as a bundle or standalone products and earn via rental fees. The business owner also gets a commission as a source of income along with many other revenue streams. The peer-to-peer online dress rental business mostly supports hyperlocal operations.
The US on-demand home services sector alone accounted for a market share of $600 billion in the year 2020. That being said, the global trajectory for the same estimates to $1574.86 billion by the end of year 2024, which is in approximately three years. The reason behind the popularity of on-demand home services is simple, which is quick access to thousands of professionals within a few taps on your phone, be it plumbing, carpentering, house cleaning and more.
The business model of an on-demand home service business is also quite simple. The customer books a service based on demand and the business owner sends the corresponding service provider. In case of a multi-vendor home services store, different service providers sign up on the platform and enlist their services. From there, customers get to select the service provider of their choice and the providers can also place bidding on a service.
The babysitting industry falls under the global child care market, which is expected to reach $524 billion by the end of 2022, adding more than $180 billion in its revenue in the past 4 years. The main reason behind the success of online babysitting services is the difficulty parents face in finding a suitable babysitter for their child.
On an on-demand babysitters marketplace, parents can find a babysitter within a few minutes and select the most suitable one for their children. They can also filter babysitters based on their age, gender, experience, hobbies and fees.
The global elderly care industry (be it home services, nursing or assisted living devices) is projected to reach $1942 billion in the next five years. This is one of the most substantial growth in the on-demand services industry. The demand for elderly care is estimated to increase in the future due to increase in chronic illness rates and a gradual rise in awareness of elderly care service professionals.
With the help of an online elderly care services business, entrepreneurs can provide families with qualified professionals and also create monthly service subscriptions. Alongside, they can offer add-on services and products to make their marketplace more helpful for senior citizens.
The pet care market is another market that accounts for over $200 billion in the global economy. As per the reports, it has been projected to reach $325.74 billion in the year 2025. In fact, the Canadian Household expenditure on pet insurance alone amounted to over $2 billion in the year 2019. This shows the increasing love in global communities for pets and animals.
However, due to the hectic lifestyle, it is not possible for the majority of consumers to own a pet. For this reason, they prefer to hire a pet care professional who can look after their pet when they are at work. Similarly, families going on long vacations and holidays also prefer to hire pet care professionals.
Along with pet care professionals, entrepreneurs can offer pet grooming services, veterinary services, pet food products and toys on their online marketplace.
An artists marketplace follows the gigs marketplace model where different types of artists, such as musicians, dancers, magicians, stuntmen, yoga professionals, cooking experts, etc. sign up on the platform. After they have signed up, they can explore different gigs uploaded by customers and place their bids. On the other hand, these artists can list their services as well and customers can browse artists and select the most suitable ones for their jobs themselves.
Online artists marketplace falls under the entertainment industry, which has been one of the most successful markets in the world. Be it birthday parties, marriages, holidays, business events or any other occasions, entertainment professionals are often required in them all.
The mechanics marketplace is a newly emerging business model that has only existed in the world from the past decade with the majority of growth accounting from the past five years. A major reason behind the success of mechanics marketplace and their increasing demand in future is their immediate cost-effective assistance and the ability to provide local garages with quick access to a wider audience.
On a mechanics marketplace, a customer can purchase a service or hire a mechanic for various types of car services like on-road assistance, regular servicing, paint job, etc. Some popular mechanics marketplaces that received global appreciation in the past decade are:
|Company||Starting Year||Country||Funding (USD)|
|Repair Smith||2018||United States||42 Million|
|YourMechanic||2011||United States||50 Million|
|Wrench||2016||United States||37 Million|
|Fixter||2016||United Kingdom||6.61 Million|
The food industry brings vast profit margins to business owners, and with globalization of cultures and ethnicities, people now get access to delectable gourmet dishes at their homes with online food ordering business models. Along with gourmet food, online food ordering marketplaces are also recognized for being a quick and easy alternative to traditional home cooking. With this merit, food delivery businesses are immensely popular amongst students and working professionals.
As per global statistics, the online food delivery market valued at 106.1 billion US dollars in the year 2021 alone. Rooting from these estimations, the market is further speculated to reach 223.7 billion dollars by 2027 with a CAGR rate of 11.44%. With these numbers and high average profit margins of 20-35%, launching an online food delivery business is a very lucrative business idea.
Meal prep businesses are growing at an impressive CAGR rate of 13% in the forecast period 2021-2028. These businesses came into existence as they fulfilled the various demands of global consumers, such as the need for fresh food, gourmet cooking experience and cheap storable alternatives to traditional meals.
Meal prep businesses differ from food delivery businesses in a major way that they require customers to cook their meals themselves. Meal prep business owners, on the other hand, provide ingredients and recipes for the meals.
The meal prep business can be of various types such as:
Some popular meal prep businesses along with their revenue are:
|Meal Prep Business||Starting Year||Revenue||Owner Name|
|HelloFresh||2011||$1.65 billion||Dominik Richter|
|Blue Apron||2012||$124 Million||Matt Wadiak|
|Fresh N’ Lean||2010||$100 Million||Lauren Asseo|
|HomeChef||2013||$14.4 billion||Pat Vihtelic|
|Sun Basket||2014||$92.6 Million||Adam Zbar|
|Gobble||2010||$30 Million||Ooshma Garg|
|Freshly||2012||$96 Million||Carter Comstock|
For more information on how to start a meal prep business, check out this blog.
Busy lifestyles of millennials and COVID19 lockdowns led to an upsurge in the usage of online grocery delivery platforms. Not only these platforms save time but also offer a diverse and significantly superior value proposition to customers. During the heat of the pandemic, the online grocery delivery business grew to over $20 billion in the US alone with a consumer count of over 150 Million.
Online grocery delivery businesses fall under the hyperlocal business model where multiple local grocery vendors sign up and upload product listings. The business owner or the admin control the online store via a web admin panel whereas customers use a mobile app or website to place orders. Some unique features required in online grocery delivery are GPS tracking, driver routing, geo-fencing, delivery slots, etc.
Some grocery delivery solutions also come with a delivery staff application.
According to Allied Marketing Research, the global taxi industry is projected to reach a whopping $120 billion market share in the year 2027. The rise of online cab booking and increase in the cost of vehicle ownership are the most dominant factors driving this growth. If we talk about online cab booking alone, then the expected CAGR rate of the industry was 22.3% in the year 2020-2021, amounting to an overall market share of $28.65 billion.
The self driving car rental market contributed $86 billion market share in the year 2020. If we trust the Business Wire reports, the industry is estimated to add another $45 billion to this amount in the next five years. As the trends imply, self driving car rentals are used by tourists, travellers, nuclear families and young business professionals for recreation and entertainment purposes. Moreover, renting out cars instead of purchasing them is also more sustainable for the environment. Thus, receiving support from the sustainable economy. All these facts make renting out self-driving cars a highly potential business idea in 2023.
Business-to-Business domains rely heavily on rental trucks for transportation. These trucks are equally used by house movers. Considering roadways to be the most widely used means of transportation, trucks transport thousands of tonnes of logistics every year. To summarise the growth potential of the truck rental industry, it is estimated to reach $214.19 billion by the year 2030 at a CAGR rate of 10.23% in the forecast period 2022-2030.
Some other reasons behind the proliferation of the online truck rental industry are urbanization and capitalism. More and more businesses are trying to expand their services to remote regions and for this, they are dependent on road transportation services like logistic trucks.
The recreational vehicle (RV) rental industry stayed pretty much immune to the COVID-19 pandemic due to pre-existence of online booking models and the safety of a private vehicle like RV. Moreover, as the purchasing power of consumers recovered after global lockdowns, the industry witnessed a gradual incline in revenue charts.
The RV rental industry rents out vehicles like caravans, motorhomes, fifth wheels and campervans. These vehicles are fully furnished with beds, toilets and cooking stove, making them a perfect luxury to enjoy a holiday vacation. Another use case for RVs that has arrived recently is booking RVs for guest accommodation.
For complete information and business startup guide, check out our blog on how to launch your own RV rental business RV rental business.
The camping equipment market is proliferating at a CAGR rate of 6.68% in the forecast period 2021-2026. Post COVID-19 pandemic lockdowns, the industry witnessed a revenue boost as the majority of urban cities continued following a work from home policies, giving recreationists more leisure time to go on holidays and workations.
Different types of camping and outdoor gear equipment that can be rented out on an online outdoor equipment rental store are bags, camps, flashlights, ropes, footwear, apparel, cameras, bikes, first aid kits, helmets and water campers. All these equipment can be rented out in bundles and packages as well.
The legal services market already claimed a whopping $713.7 billion in revenue in 2020. With a CAGR rate of 4.5%, this number is expected to reach $908.26 billion in the next five years. The business model of an online legal consultation business is similar to that of synchronous learning, where multiple legal advisors can sign up and provide consultation services. The marketplace owner earns through service commissions and many more revenue channels.
Some renowned online legal consultation businesses are:
|Company||Starting Year||Country||Funding (USD)|
|UpCounsel||2012||United States||26 Million|
|CourtBuddy||2014||United States||7 Million|
|Lexoo||2014||United Kingdom||7 Million|
Medical consultation marketplaces follow a simple business model where different medical professionals sign up and list their services. People can also join the platform and consult a doctor that they find reliable to diagnose and help them with their health problem(s).
As per the statistics, there was a 500% growth in the usage of online medical consultation platforms in 2020. While the global lockdowns initiated growth in the online medical consultation industry, the convenience of these platforms and marketplaces is going to sustain this growth for a long term.
FATbit is one of the best custom software development companies and provides a wide range of readymade whitelabel solutions that entrepreneurs can use to launch diverse types of online businesses.To help you launch your eCommerce business in the aforementioned niches, FATbit has the following solutions:
|Business Model/Idea||FATbit Solution|
|Online tutoring/learning marketplace, legal consultation marketplace, medical consultation marketplace||Yo!Coach & YoCoach Plus: Yo!Coach is an online tutoring solution that allows entrepreneurs to launch online tutoring and online consulting businesses like language learning, skill learning, business consultation and more. It comes with advanced features like availability calendar, screen sharing, lessons management, group classes and teaching preferences.|
|Multi-vendor marketplaces||Yo!Kart: Yo!Kart is a multi-vendor marketplace solution that supports unlimited product listings, transactions and user profiles. To help entrepreneurs launch versatile online marketplaces, it comes with advanced features like order management, content management, discount coupon management, multi-lingual and multi-currency support, multi-cart checkout and accounting. Furthermore, Yo!Kart also comes with 20+ payment gateways and supports numerous third-party extensions.|
|Truck rental, P2P car rental, boat rental, RV rental, camping and adventure gear rental, dress rental, self-driving car rental||YoRent: Yo!Rent is a rental marketplace solution that is developed considering the unique problems and challenges that online rental businesses face on a daily basis. To help business owners overcome those challenges, Yo!Rent comes with rent-centric features like rental security management, product inspection, late return/cancellation charges, agreement management and document verification.|
|Online grocery delivery business||Growcer: Growcer helps entrepreneurs launch a hyper-local grocery delivery store and earn money via different revenue streams. To streamline business operations, it comes with features like geo-fencing, product catalogue management, commission management, multi-cart checkout, order tracking, single item cancellation and more.|
|Online cab booking||Vivocabs: Vivocabs is a cab booking solution that comes with an admin dashboard panel and iOS and Android mobile app. This solution allows various drivers to register their cabs on the platform and start earning. With features like fare estimator, car selection, SOS, ride tracker, driver verification, etc. Vivocabs is an ideal solution to launch an online cab booking business.|
|Online food ordering||Yo!Yumm: Yo!Yumm is an online food ordering solution that comes with an admin/merchant dashboard panel and customer mobile apps. To assist delivery staff, it also has a separate mobile app. Some of the features that you get in Yo!Yumm are order management, restaurant management, daily sales updates, takeaway option, geo-location and real-time delivery tracking.|
|Meal prep business||Yo!Meals: Yo!Meals is an advanced meal kit delivery solution that supports multi-vendor operations. It comes with features like meal customization, order management, subscription management, eWallet, reviews and ratings, and more to facilitate smooth meal prep business operations.|
|On-Demand Home Services, Babysitter Services, Elderly Care Services, Pet Care Services, Artists Marketplace, Mechanics Marketplace||Yo!Gigs: Yo!Gigs is an on-demand services marketplace solution that is designed to resolve the major business challenges that entrepreneurs face in facilitating online gigs operations. It comes with features like communication module, bid management, booking management, wallet, task management, ratings and reviews, and a favorite customers module.|
All FATbit marketplace solutions are available at a one-time cost and come with 1 year of free technical support. Along with this, they all are fully customizable and scalable (support unlimited listings, transactions and user profiles.) Visit our product page to find the instant demos of our all products or you can also click here to book a personal one-on-one demo to understand the functionality of our solutions as per your business requirements.
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