All you need to know about starting your own online service marketplace and gig economy. You can read more at our blog post that explains more about the gig economy in Asia. https://www.constructdigital.com/blog/journeying-into-the-online-service-marketplace

1. THE ULTIMATE
GUIDE TO THE
GIG ECONOMY
CONSTRUCT DIGITAL

2. A GIG ECONOMY IS AN ENVIRONMENT IN
WHICH TEMPORARY POSITIONS ARE
COMMON AND INDIVIDUALS OR
ORGANIZATIONS CONTRACT WITH
INDEPENDENT WORKERS FOR SHORT-
TERM ENGAGEMENTS.

3. THE TREND TOWARD A GIG
ECONOMY HAS BEGUN.
A STUDY BY INTUIT PREDICTS THAT BY 2020, MORE THAN
40 PERCENT OF THE AMERICAN WORKFORCE WILL BE
FREELANCERS, CONTRACTORS AND TEMP WORKERS.

4. ONLINE
GIG ECONOMY
Online
service
marketplace
Online
service
marketplace
Online
service
marketplace
Online
service
marketplace
Online
service
marketplace
Online
service
marketplace
Online
service
marketplace
Online
service
marketplace
AN ONLINE GIG ECONOMY IS MADE UP OF
MANY ONLINE SERVICE MARKETPLACES

5. TWO KINDS OF ONLINE
SERVICE MARKETPLACES
The difference on this spectrum revolves around the degree to which the product or
service offered on the platform can be standardized.
Commoditised service platforms should set the prices for their users e.g. Uber
Non-commoditised service platforms should allow the suppliers to set prices e.g. Airbnb
COMMODITISED
SERVICE
PLATFORM
NON­
COMMODITISED
SERVICE
PLATFORM

6. CHALLENGES OF RUNNING AN
ONLINE SERVICE MARKETPLACE
Actual exchange of money
follows the delivery of the
service, which requires
the customer and service
provider to directly
interact with each other.
Most service marketplaces
cannot facilitate a
transaction before the
customer and service
provider agree on the
terms of the service.
1 2
This weakens a marketplace's ability to capture value.
The party that is charged would be motivated to abandon the platform and
conduct the transaction off-platform.

7. 1. Value for both stakeholders 2. On­platform reputation
Workflow tools should create additional value for
both sides, not just for one
For example: On Upwork, before making a hiring
decision, customers have the opportunity to speak
live with service providers using built-in
messaging tools
Service providers can also evaluate prospective
customers based on data such as a client’s
track record
Incorporate community reviews on a service
provider's service act as social proof for future
customers
This in turn benefits the reputation of the
platform itself because service providers would
try to provide quality service to boost their ratings
SO, PLATFORMS HAVE TO CREATE
STICKINESS FOR ITS USERS.
HOW?

8. THREE BUSINESS MODELS FOR
ONLINE SERVICE MARKETPLACES
TRANSACTION
BASED MODEL
LEAD
BASED MODEL
SUBSCRIPTION
BASED MODEL

9. TRANSACTION BASED MODEL
The marketplace takes a cut of each transaction successfully generated through the
platform.
The service fee taken varies across marketplaces from 5% to 40% depending on the value of
the transaction and the support services provided.

10. PLATFORM OWNER SERVICE PROVIDER
Revenue increases as
sales generated by
platform increases
Only pays a fee when
they sell something
No upfront cost of
listing, thus removing
risk of not making a sale
Only pays a fee when
they buy something
Greater supplier pool
to choose from
CUSTOMER
TRANSACTION BASED MODEL
BENEFITS

11. LEAD BASED MODEL
The platform makes introductions between customers and service providers based on the
specific needs of a project. Service providers who confirm they are interested and available
make bids for customers to choose from.
The marketplace charges service providers to send quotes to customers, while they can sign
up on the platform for free.

12. Users get to use the
platform for free, thus
it is easy to quickly
build a large user base
Suppliers get to sign up
on the platform for free
Access to a large pool of
potential customers
Suppliers having to pay
to quote means more
qualified options for
customers
LEAD BASED MODEL
BENEFITS
PLATFORM OWNER SERVICE PROVIDER CUSTOMER

13. SUBSCRIPTION BASED MODEL
Customers are billed on a recurring basis and receive their services at the same time every
month or as per their convenience.
The platform offers a range of subscription plans at different price points based on
frequency of use or number of good desired.

14. SERVICE PROVIDER
Customer more likely to stick
around after subscribing
Easier to predict revenue and
gain customer insights for
cross-selling or marketing
Eliminates inconvenience of
buying things over and
over again
Periodic payments are
often offered at a discount,
enhancing overall
satisfaction
CUSTOMER
SUBSCRIPTION BASED MODEL
BENEFITS

15. EXAMPLES OF ONLINE
SERVICE MARKETPLACES

16. EXAMPLES OF ONLINE
SERVICE MARKETPLACES

17. #HASHTAGThe History and Power of Hashtags in
Social Media Marketing
CHAPTER 1CASE STUDY

18. WHAT IS KAODIM?
Malaysia-based non-commoditized online service marketplace which allows people
to find, compare and hire service professionals
Currently free for both service providers and customers, but potentially adopting
the Lead Based Model
Also available in Singapore and The Philippines

19. WHO CAN BE A KAODIM SERVICE
PROVIDER?
Registered businesses or freelancers

20. WHAT KIND OF SERVICES CAN YOU
FIND ON KAODIM?

21. BENEFITS
SERVICE PROVIDER
Traditional advertising which typically
requires a static monthly fee does not
necessarily translate into customers
Instead, Kaodim empowers service
providers with the knowledge of who
needs their services and when they
need it, allowing them to get hired in
an efficient manner
Kaodim saves people the time and
effort of hunting down the
right service provider
Customers are assured of the quality
of service providers based on
community reviews
CUSTOMER

22. “They’ve been getting real leads, actual meetings with new customers, and
also completing new jobs. Contractors used to have to travel for hours to
meet a client just to give a quotation which may not translate into a hire.
Now they can just quote through their notebooks or mobile phones.”
– Jeffri Cheong, Co-Founder of Kaodim

23. REFERENCES
http://whatis.techtarget.com/definition/gig-economy
http://nextjuggernaut.com/blog/how-to-succeed-with-a-services-
marketplace-choose-the-model-that-fits-you-right/
https://www.kaodim.sg/
https://www.techinasia.com/kaodim-service-marketplace-malaysia-lawyers

24. The ideas, concepts and proposals contained within this document are the
intellectual property of Construct Digital; as such none of these ideas, concepts or
proposals can be executed without approval, consent and / or payment to
Construct Digital
www.constructdigital.com