Time-as-a-Service (TaaS)
The business model of time efficiency
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Friends,
We’re all familiar with SaaS businesses. Software-as-a-Service is a software distribution model in which a cloud provider hosts applications and makes them available to end users over the internet - everything from Slack to Gmail to Spotify. Many of us use Saas products every day without even thinking of them. But I’d like to hypothesise that the business model that is emerging is TaaS - Time as a Service or Time as a Product (TaaP)
Time-as-a-Service (TaaS) is an emerging business paradigm that shifts the focus from tangible products or conventional services to the invaluable resource of time itself. In general, it is the benefit of having SaaS, but not exclusively. TaaS is a business model that charges you for efficiency of time through the application of technology.
Life is getting quicker and more so with AI at every turn. With modern lifestyles becoming increasingly time-strapped, TaaS offers a range of innovative approaches to cater to this demand for a convenience culture.
TaaS manifests through diverse channels, each catering to distinct needs:
On-demand services: Instant gratification is at the heart of TaaS, facilitated by user-friendly mobile apps. Uber's real-time transportation is a perfect example of TaaS disrupting a whole industry. Our thirst for getting from a-to-b as quickly as possible made this model prominent. We have limited time and want to elect what are life is and so this is the capitalizing on the urgency of contemporary living.
Task-based services: The TaaS model empowers users to delegate specific tasks to skilled professionals. Platforms like Upwork and Fiverr exemplify this, enabling users to delegate errands, assembly, and creative projects effortlessly. I like to think that this global delegation model has helped to speed up the growth of the economy, primarily due to time but also due to access
Subscription services: TaaS extends beyond single transactions to become an ongoing relationship. Netflix and Spotify are the perfect examples of this approach, offering a treasure trove of media content for a fixed monthly fee-saving time in finding entertainment on demand - and potentially avoiding advertisements.
Productivity tools: TaaS also extends to productivity-enhancing tools. Applications like Evernote and Trello cater to this aspect, offering users digital aides to optimize their work schedules and processes.
TaaS's ascent is powered by several factors:
Escalating convenience demands: In an era defined by speed and efficiency, TaaS offers a solution by granting prompt access to products and services, effectively reducing time-related friction.
Sharing economy's resurgence: The resurgence of the sharing economy, rooted in resource-sharing rather than ownership, complements TaaS's ethos. This trend, shaped by environmental considerations and the pursuit of financial savings, aligns seamlessly with TaaS's ethos of shared access over individual ownership.
Mobile technology revolution: The ubiquity of mobile devices is a pivotal enabler for TaaS. By harnessing smartphones, users can seamlessly get what they want, when they want - order rides, summon cleaning services, and even replenish groceries, all through a few taps on their screens.
As TaaS's influence continues to burgeon, one can anticipate a forthcoming surge in companies proffering time-liberating services. This expansion could encompass domains as varied as financial management, well-being enhancement, health and career advancement, thereby perpetuating TaaS's trajectory as a transformative force in modern living.
The "Time as a Service" business model reimagines time itself as a valuable commodity that can be packaged, marketed, and sold to consumers. Individuals are offered curated experiences, services, or content that optimize the limited time they have. Ad-supported cable TV became more expensive and worse in quality, paving the way for Netflix's disruption. The main question is which industry is primed for disruption - which are the industries that can be disrupted because things take too long and which AI can be an enabler for change. That has to be healthcare. Here in the UK, we have waiting times going through the roof and access to an actual doctor is convoluted. Imagine an Uber for healthcare. It’s not crazy given all the illogical systems of data that exist. Just last week, it seemed like our NHS were celebrating moving to digital phone systems which feels like a quarter of a century too late. TaaS works well when focused on industries with vulnerabilities e.g. long wait times, pointing out that creating time-saving solutions is essential to building billion-dollar companies. Large companies like Amazon save you up ten days in delivery time using Prime - which is a monthly or annual charge. Netflix saves you up to 20 minutes of commercials per hour with their core business model. Scott Galloway predicts this to be saving 12 days a year saving with Netflix and Amazon giving you 6 days back from waiting in queues in stores. And at Quizlet, my colleagues used AI to create Magic Notes, a tool that saves time in creating tests and flashcards and a whole bunch of other generative AI magic.
TaaS is still a relatively new concept but it’s been happening under our very noses. It is gaining popularity as people become more time-poor and demand more convenience. And the richer you get, the more you value your own time, so you pay to skip the queues, you pay for the concierge service, and you pay to get access first. Expect more focus on time-saving products as that’s where the money will be in a fast AI-driven world.
Stay Curious - and don’t forget to be amazing,
PS 2023 Ranking of the best universities in the world for those of you with kids going to college this year or to snoop on how good your alma mater is to feel good about yourself.
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