Several internet based startups emerged in the early part of this millennium which promised big but folded up early. Now the scenario is different. The economy is powered with Big Data, people possess individual smartphones and freelancing is seen as a viable career option. The on-demand economy is taking baby steps towards fulfillment thanks to several Uber like ventures. One thing that needs to be taken care off though is that supply chain is a low profit, high investment business. Startups without substantially deep pockets are likely to struggle early on as evidenced by the closures of kozmo.com more than a decade back. Even new age ones such as Postmates, DoorDash and Instacart are struggling with staffing concerns. Even engineers at Silicon Valley have now become conscious of joining such startups.

Source:  http://fortune.com/2016/03/16/on-demand-startups/