Launching an Online Service Marketplace: A New Era of Digital Services

The contemporary work environment has witnessed an astounding shift from traditional jobs to independent and flexible employment. Launching an online service marketplace is a remunerative business opportunity for aspiring entrepreneurs, and ready-made software solutions make this shift comfortable and make it easier to enter this flourishing industry quickly.

Moreover, with an estimated consumer base of around 86.5 million freelancers in 2027 in the United States, the target audience for a new service platform is expected to increase substantially. The demand for an online freelance service marketplace in the flourishing gig economy was valued at USD 5.58 billion in 2024, growing at a CAGR of 17.7% in the projected years of 2025- 2030. The handyman industry is growing at a CAGR of 16.5%, which is estimated to make USD 1580 million by 2033. These numbers point toward the growth of independent jobs in the present-day scenario.

This blog presents the handbook for launching your own online service platform in the handyman or the freelancing industry, catering to the growing shift and establishing a profitable business. It provides a fundamental understanding of the platform, its business and revenue model, and remunerating niche-based marketplace propositions.

What is an Online Service Marketplace Platform?

The online service industry requires a service marketplace platform that offers a convenient space for finding skilled service providers for the seekers to exchange services. The online service marketplaces are divided into two industry sectors, which are elaborated on below.

Freelance Service Marketplace

The freelance service sector is growing at a CAGR of 15.2%, with an estimated 90.1 million freelancers in 2028. The industry market size value is USD 6.37 billion in 2025 and is estimated to reach USD 14.39 billion in 2030. It offers cross-border collaboration and a competitive market, offering clients the best service providers and professionals along with the opportunity to earn competitive payouts.

Example: Digital marketing, writing, translation, business finance, and more.

Handyman Service Marketplace

Growing at a CAGR of 17.1%, the handyman service industry offers its clients specialized services and customer-centricity. This autonomy allows access to services at a preferred time and budget requirements. The handyman service industry is estimated to reach a market value of USD 1,198 million by 2032. These platforms also aim to deliver high customer satisfaction.

Example: Pest control, landscaping service, furniture assembly, HVAC, and more.

Rising Demand For Convenient Services

The numerous benefits of the industry have resulted in the escalating transformation in the employment methods from traditional full-time jobs to micro-job types. These reasons have raised the demand for these convenient service platforms that connect you with the best-suited professionals and clients in the business.

An online service marketplace presents numerous advantages to its target audience presenting an opportunity to participate in cross-border collaboration, nurturing the global upsurge, increasing autonomy, and more. Likewise, the handyman service marketplace sector is also catching up with the availability of skilled professionals at preferable geographical locations and equitable pricing, offering flexibility to all user types. Some established examples of these micro-job marketplaces are Upwork, Fiverr, TaskRabbit, Airtasker, and more.

The service marketplace provides users with an efficient, transparent system and an asset-light investment that promises high returns to a young entrepreneur. Further, the blog unveils the rising numbers in the industry to acquaint an aspiring entrepreneur with this lucrative business opportunity.

With a low entry barrier for entering the industry, new businessmen can grab this opportunity and invest in this advantageous sector. Additionally, according to reports by FlexJobs, more than 50% of freelancers have a better work-life balance. These factors and increasing numbers are just scratching the surface of the rising demand for the on-demand service industry. The next section elaborates on the workflow and the revenue model to develop an in-depth understanding of the industry and the platform, assisting in launching and creating a powerful service platform.

How Does a Service Marketplace Platform Work?

A service marketplace is an aggregator connecting the service seekers with the service providers. The platform owner’s main value proposition through the platform is providing them time and flexibility. The business model, workflow, and revenue model of a service marketplace are covered further to acquaint new businessmen with an all-powerful platform that offers high-end performance.

Workflow of The Service Marketplace Platform

The business model of a service platform is determined by the workflow followed on the platform. Before getting into the business models essential for establishing a company, an aspiring entrepreneur should be aware of the user types on the platform- service provider and service seeker.

User Types –

1. Administrator: The main operational entity of the service marketplace is the platform owner of the website that can manage the entire platform and have access to a robust operational dashboard with custom task management, payment gateways, functionality for monitoring reviews and ratings,  and more features to configure the website for a user-friendly experience. Along with this, a well-structured data analytics feature assists business owners in making user-centric decisions that promote business growth. 

2. Service Seekers: Service seekers register on the platform and post a job using advanced job posting features for hiring service providers. Skilled professionals listed on the platform bid for the job so clients can choose their preferred service provider. After job completion, clients can leave reviews and ratings and build the credibility of the platform. 

3. Service provider: The service providers or the freelance or handyman professionals register on the platform with relevant skills and certifications for reliability and then bid on the jobs listed on the platform. Also, they are offered a feature to add service packages displayed on their profile. After job completion, these professionals are remunerated. 

Workflow based on Modules –

Next, take a look at the business models offered by these service platforms- the Direct Hiring Model, the Job Posting and Bidding Model, and the Hybrid Model.

1. Direct Hiring: This business model allows service seekers to send direct invites to the service provider for the required job. Clients can hire after analyzing the service packages and skills listed on the professionals’ profiles and book them according to availability through the booking calendar feature. 

2. Job Posting and Bidding Module: The job posting module lets service seekers and businesses post a job on the platform using the advanced job posting feature and hire professionals based on their offered bid using the bidding system. The exchange of services is conducted based on these factors and after the selection of the best offers. 

3. Service Packages: The service packages are made accessible on numerous online service platforms with ready-to-go services. The service packages can be maintained by both the admin as well as the freelancer for the access of the service seeker. These packages offer multiple plans with different price listings

4. Hybrid Model: The hybrid model provides a competitive edge to the platform owner. It offers a direct hiring module and a job posting and bidding module. A service seeker can post a job for bidding while browsing through the profiles of professionals and their offered service packages for direct hiring. 

These are the business models, further, we explore the revenue-generating model of the platform that creates a profitable business for an aspiring entrepreneur.

Revenue Model of the Platform

A service marketplace in any niche or industry offers numerous revenue streams on the platform. This business venture is easily expandable with the ease of accessibility of the platform in cyberspace. A remunerative business launched with cutting-edge turnkey service software solutions offers quick returns, stable income, and quick realization of the breakeven point. Let’s look at all the revenue streams of a service marketplace.

1. Commission Model: A certain amount of fixed commission is charged by admin from the service providers as a booking amount on the platform. 

2. Featured Listing: The featured listing fees assist user types to display their posted job on the front end. Additionally, profiles of the service providers are also highlighted for better hiring in exchange for a certain fee.

3. Display Advertisements: The platform allows third-party businesses to display ads on the website and earn through the charges levied on them. Third-party local enterprises and service providers utilize the benefits of display ads. 

4. Subscription Packages: The platform can curate a monthly subscription model that charges fees from all the user types in exchange for additional services. 

5. Service Charges: These are charged by the business owners to the service seekers on the platform for using the platform for hiring purposes. 

This was the detailed overview of the business and revenue model of a service marketplace, revealing the comprehensive market structure of the platform. Next, the blog will explore the key features of an advanced service platform.

Business Domains of Service Marketplace 

Launching an online service marketplace gives an impression of being a constrained industry with minimal expansion categories. But on the contrary, the present-day scenario has generated a pool of possibilities that can be explored and transformed into a profitable business venture. Below are the surveyed types and examples that can be researched to enter an expanding business model.

1. Freelance Service Marketplace: CAGR: 15.2% (2024-2033)

The freelance industry has observed a massive shift toward the increasing demand for service platforms offering autonomy and flexibility in the service marketplace. It is a highly preferred working environment among the present generation as it allows remote job facilities along with high cross-border collaboration opportunities.

Examples: Toptal, Upwork, Fiverr, and more.

2. Education Service Marketplace: CAGR: 8.61% (2024-2028) 

Online education is a leading business prospect with increasing technological advancements, demand, and flexibility. An educational service marketplace offers online academic and professional courses in multiple branches of subjects. No skill is unattainable with progressive growth in this sector.

Examples: Cambly, Coursera, Udemy, and more.

3. Travel Service marketplace: CAGR: 5.5% (2024-2032)

The travel industry is expanding with increasing ease of accessibility. The industry accommodates multiple niches within the sector that can be capitalized to generate profitable outcomes. Travel sectors are segregated into medical, leisure, business, and cultural and heritage experiences. A service marketplace is capable of offering centered functionalities to integrate this industry.

Examples: Expedia, Booking.com, Airbnb, and more.

4. Handyman Service Marketplace: CAGR: 13% (2024-2032)

The handyman industry is witnessing growing demand with the offered ease of accessibility. This business venture is an asset-light investment with high ROI and low entry barrier, making it a lucrative business opportunity for aspiring entrepreneurs. This on-demand service sector has explored multiple industry niches, such as electricians, cleaning, plumbing services, etc.

Examples: Thumbtack, UrbanCompany, Angi, and more.

5. Healthcare Service Marketplace: CAGR: 8.73% (2023-2028)

The healthcare industry includes the online doctor consultation market that eradicates the need for long queue waiting and geographical barriers while adding to the convenience and immediacy offered with the digitalisation of the sector. The industry secures patient-centric care. Capitalising on this sector shall reap profitable returns to the new business owners.

Examples: DoctorOnDemand, BetterHelp, MDLive, and more.

6. Food Delivery Service Marketplace: CAGR: 13.75% (2025-2029)

Online food delivery is another proliferating industry with a highly lucrative business opportunity. This sector can be capitalised by launching a food delivery business platform offering takeaways and deliveries in multiple niche locations while also providing discounts and offers to the clients.

Examples: Grubhub, Deliveroo, Uber Eats, and more.

7. Equipment Rental Service Marketplace: CAGR: 5.3% (2024- 2030)

The rental industry has been expanding with cost-effective solutions and added variety offered on the dedicated platform. This sector has witnessed growth in multiple market niches, along with the equipment rental industry. Launching an equipment rental service marketplace is a beneficial pursuit with a client base of commercial and residential contractors, the construction industry, mining and extraction customers, and more.

Examples: UnitedRentals, EquipmentShare, Home Depot Rentals, and more.

8. Car Service Marketplace: CAGR: 18.5% (2024-2032)

The CAGR mentioned solely covers the ride-sharing industry, whereas the car service marketplace involves multiple other services, such as taxirides, car sharing facilities, car pool, and more. This service marketplace has also been enhanced under the rapid digitalisation of the modern age, facilitating premium services that can be availed globally.

Examples: Uber, Lyft, Curb, and more.

The service marketplace has included numerous business domains within its categorization. This division is also based on the customers or the participants of these transactions.

Categorization Based on Participants

• Business to Customer: B2C is a business model where customers are the end users. It is a classic and global selling model. Businesses operating under this model maintain direct contact with customers, such as Uber Eats and Thumbtack.
• Customer to Customer: The C2C, also called the P2P transaction without the intervention of any third party. These are direct transactions facilitated through online marketplaces such as Airbnb and Uber. 
• Business-to-Business: The B2B model connects two companies for exchanging services. For example, Thales and Caterspot. 

Key Features You Need For a Successful Service Marketplace

Today, the online marketplace for services has become a popular medium of employment. Integrating essential and state-of-the-art features into your service marketplace will ensure an increase in the user base on your platform, luring large consumer bases. This section will acquaint a new business owner with the required features of a service marketplace following the user types on the platform.

1. For Freelancers 

• Multiple Job Types 
• Detailed Profile
• Bidding Module
• Booking Calendar
• eWallet
• Multiple Languages, Currencies, and Payment Gateways
• Custom Service Packages
• Job Cancellation Window

2. For Clients

• Advanced Job Posting
• Advanced Filter Searches
• Discounts Coupons
• Direct Hiring
• Ratings and Reviews 

3. For Admin

• Custom Task Fields
• Custom Registration Fees
• Commission Management
• Analytics and Reports
• Ratings and Reviews Monitoring

Rise of Niche Service Marketplaces

The emerging market trend of the niche-based marketplace is crowdsourcing specialized service providers and service seekers along with enlisting numerous user types that offer brand loyalty, reduced competition, and more. Niche marketplaces display a high return on investment potential to be capitalized by new business owners through these specialized platforms.

Moreover, today, the goliath trend of the horizontal market is challenged by the uprising vertical or niche-based marketplace. The rise of the niche-based service marketplace has presented several advantages, and some of them are mentioned below.

• Low Competition
• Loyal Customer Base
• Specified Marketplaces
• Lower Advertising Prices
• Distinct Target Audience
• High Credibility
• Centered Experience

The quantity of the on-demand niche and broad-based marketplace has enhanced manifolds along with the changing trends and preferences of the market customers. A niche-based marketplace aims to cater to a highly targeted audience, assisting in reduced market competition, while a broad-based marketplace caters to a wide audience.

Broad-Based Marketplace vs Niche-Based Marketplace

The difference between a broad-based and a niche-based marketplace lies in the latter’s ability to foster close-knit community engagement. The most prevalent examples are given below to help you get detailed insights into the different types of service marketplaces.

Broad-based Marketplace: A broad-based marketplace, as the name suggests is a widespread service marketplace that offers an all-inclusive, broad array of services on the platform. It is divided into white-collared and blue-collared job types or the freelance service marketplace and the handyman service marketplace.

• Service Marketplace: Fiverr, Upwork, Freelance
• Handyman Marketplace: TaskRabbit, Bark

Niche-Based Marketplace: Niche-based marketplaces are specialized service platforms offering services divided by numerous job categories in both the handyman and the freelance marketplace. These niche-specific platforms as discussed before offer a paramount and centered experience.

• Business Consultancy: Expert360
• Design and Creative: 99Design
• Content & Copywriting: WritersAccess
• IT & Development: Gigster
• Marketing & Consultancy: MarketHire

Market Opportunities in Emerging Sectors

The market opportunities in the niche-based sectors are growing vastly with the changing trends in the gig economy. The emerging sectors in the freelancing and handyman industries are listed further.

Freelance Marketplace	Handyman Marketplace
Accounting	Plumbing
Digital Marketing	Locksmith
Therapy	Landscaping
HR and recruiting	Electrician
Information Technology	Cleaning
Consulting, and more.	Dog Breeder, and more.

Capitalizing on any of these niches will provide a new businessman a competitive edge in the mainstream trend of a broad-based marketplace. This shall help produce tailored solutions in the niche-based industry and gain brand loyalty.

After enlightening new business owners with relevant and essential information to launch their service marketplace, it is important to assist them by introducing methodologies and allowing seamless entrance into the industry.

Choosing The Right Software to Launch Your Service Marketplace Platform 

This is a key step in the journey to launch a service marketplace. A suitable software solution for launching your service platform must be adaptable to the latest technology and adhere to the numerous niches available in the market. One software solution that checks on all the essential feature list requirements is Yo!Gigs. The blog will later shed some light on the turnkey software, first, an entrepreneur should focus on the cost of development of a service marketplace and calculate the return on investment estimation based on the selection of the developmental method.

Cost of Development of the Online Service Marketplace

The cost of developing an online service marketplace mainly depends on the method selected. Choosing an approach that aligns with your business goals, budget, and required functionalities can be tedious. Therefore, this section of the blog aims to assist by expanding on the development method that will be ideal and relevant for entering the booming industry and investing in a remunerative business.

• Custom Development Method: The custom development method for launching your service marketplace employs a team of developers and designers that create your service platform from scratch. This method is also extremely time-consuming, with extensive time taken in executing the planning, designing, developing, and testing. It costs USD 20,000 to USD 50,000 with high maintenance costs. 
• Readymade Software Solution: This approach to developing an online service marketplace is comparatively less cumbersome. These meticulously tested solutions are pre-built with the latest industry-specific advanced features and facilitate the quick launch of your online service marketplace. These solutions are developed taking into account all the requirements of a broad-based and niche-specific marketplace, making them a better alternative to the above-mentioned developmental method. The turnkey software solutions cost 10 times less than the custom-developed platform for a lifetime with no hidden costs and one year of free technical support. 

The features and revenue model of the ready-made solutions assist businessmen in attaining the set goals easily. Yo!Gigs is one such well-renowned, ready-made software solution that harmonizes with all the on-demand service platform requirements of a business.

Why is Yo!Gigs The Ultimate Choice For Your Service Marketplace?

Yo!Gigs is a progressive software solution that has been purpose-built with advanced state-of-the-art functionalities. It is a self-hosted software solution with fully customizable and scalable capabilities, allowing a businessman to personalize the white-label software and accommodate numerous user types to the platform without compromising on the quality and speed of the website.

Yo!Gigs is the only service marketplace software catering to the freelance and handyman industries that assists new entrepreneurs to capitalize on these proliferating enterprises with industry-specific features such as job bidding, job posting, multilingual & multicurrency capabilities, robust dashboards, and more. The software solution is available at a one-time cost and can help a new businessman launch their online service marketplace in any specialized niche.

Key Features

• Job Posting
• Job Bidding
• Direct Invitation
• Dual Search
• Custom Search Filters
• Custom Task Category
• Analytics and Reports
• User Management
• Job Cancellation Window
• Offline Mode
• Booking Calendar
• Split Payment
• eWallet
• Multilingual and Multi Currency Functionality, and more.

Platforms Launched with Yo!Gigs The Best On-demand Service Software Solution

The software solution has helped launch multiple websites catering to a diverse pool of niches and has been testified for its user-friendly interface and scalability capabilities.

1. ImpactMaker

ImpactMaker is one of the noteworthy clients based in Germany with a niche-specific platform creation. The platform is a one-of-a-kind niche-based marketplace created to harbor the environmentalists of the world. It is a sustainability consultant platform leveraging the industry-specific, state-of-the-art, prebuilt features of the turnkey software solution, Yo!Gigs. ImpactMaker benefits from the fully scalable and customizable capabilities and has successfully catered to the needs of climate action experts and sustainability consultants. The platform has been configured, tested, and deployed easily with the assistance of the Yo!Gigs team as the software is GDPR compliant.

2. MicroWorkspace

MicroWorkspace is a Zimbabwe-based broad-based freelance platform connecting freelancers with service seekers from all over the world. It is a progressing platform and has registered over a hundred professionals on the platform without compromising on the platform performance and prospering with the scalability functionality offered by Yo!Gigs. MicroWorkspace offers verified and vetted professionals to registered clients, along with multilingual and multi-currency features. Altogether, it is a testimonial for the cutting-edge functionalities of the software. The website is also a collaborative platform, enabling visitor involvement in website blog development.

3. KDPeeps

KDPeeps is another auspicious client from the United Kingdom that has created a niche-based marketplace for connecting authors and self-publishers with specialized and skilled freelance professionals. The platform supports multilingual and multicurrency functionality. KDPeeps connects content writers and publishers from all over the world, harnessing the benefits of niche-based community building. The website functions as a testament to the modern requirements of the online service industry such as monitoring the job posting on the platform and following a well-structured vetting process.

Parting Thoughts

The on-demand service industry has massively invested in promoting flexibility in the present job scenario. With outpouring advantages associated with the industry, it is essential to capitalize on and leverage the sector assets. This blog aims to assist new entrepreneurs with primary information and guide them through the process of launching an online service marketplace and contributing to the new era of digital services.

Yo!Gigs is an apex software that provides a hassle-free solution, offering the right tools and strategies at a one-time cost and a year of free technical assistance. To learn more about the industry and the specialized software solutions, get in touch with the field experts.

Frequently Asked Questions

Q 1. What are the main benefits of launching a service marketplace platform?

Ans. There are multiple benefits associated with launching a service marketplace that provides a high return on investment on the launch of an asset-light business. A service marketplace connects skilled professionals with service seekers, allowing cross-border collaboration among the freelancers and benefits of autonomy and flexibility for the handyman professionals. It creates a mutually advantageous ecosystem for both the platform owner and the user types registered on the platform. By launching a service marketplace, a business owner can quickly enter the booming service industry with a low entry barrier, creating a profitable business. 

Q 2. How do I choose reliable software for my service marketplace platform?

Ans. Choosing reliable software is an essential step toward launching your service platform. Some of the primary functionalities to look for in a software solution are a user-friendly interface, multiple seamless payment gateways, high scalability capabilities that accommodate growth, robust management capabilities, industry-specific features, and more. Yo!Gigs is the best software solution for the launch of your service marketplace. It is purpose-built for all of your service platform requirements, fitting in with the requirements of your target audience. It has delivered to a global client base launching high ROI platforms at a one-time cost. 

Q 3. What measures should I take to ensure safety on my platform?

Ans. A platform that offers security and privacy conveniently invites numerous user types to the platform. An aspiring entrepreneur should look for software that is GDPR compliant and has secure payment gateways, robust customer support, dispute resolution modules, and more. These measures ensure the expanding growth of the platform and, therefore, add to its credibility and profitability. 

Q 4. How are disputes typically resolved in service marketplaces?

Ans. In case of disputes encountered on the service marketplace, the platform should ensure addresal of the situation. Firstly, the platform should integrate review and rating features to increase the credibility of the website. Next, integrating features such as a job cancellation window, issue resolution regarding the payment and work quality, admin approval on registration, background checks for security, and more. Moreover, the payments made on the platform are held by the admin and are released only on the completion of a task. Therefore, a software solution that offers all these functionalities is ideal for seamless dispute management.