The Convenience Economy

Characterizing Convenience

So, How Do You Measure Convenience?

What Contributes to These Convenience Cost Declines?

Considering Trade-Offs

The Convenience-Experience Frontier

Where Does That Leave Us?

  1. Improve convenience, while maintaining the same cost point as competitors. This could look like a food delivery service that charges the same rates as Uber Eats or Postmates but promises delivery in under half an hour. (Such a future could be closer than we think — drones could average 15 deliveries/hour, compared to the typical 3/hour of a human driver).
  2. Lower costs, while providing the same level of convenience and quality as competitors. OTT streaming services are one area prime for this type of dynamic. At-home exercise subscriptions are as well. Yet as competition grows and subscription prices converge (typically to within a few dollars of each other), content and experience become important differentiators.
  3. Lower costs while improving convenience. This is hard but achievable — Coupang did it in South Korea (offering same-day delivery for ~$2.6/month) and has since surpassed Amazon to become the dominant e-commerce player in the country.
  4. Improve the experience while trying to maintain convenience. Social commerce example discussed above.
  5. Make the experience more convenient. VR concerts example also discussed above.

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Find more of my writing at: https://backoftheenvelope.substack.com/ | Follow me on twitter @AlanaDLevin

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Alana Levin

Alana Levin

Find more of my writing at: https://backoftheenvelope.substack.com/ | Follow me on twitter @AlanaDLevin

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