Why every on-demand platform needs SMS
Bird
28 Jan 2020
SMS
1 min read
Key Takeaways
SMS remains the backbone of on-demand communication — it connects buyers and suppliers instantly, reliably, and globally without requiring internet access or app downloads.
Open rates prove its dominance: while emails average ~25%, SMS messages achieve up to 94% open rates, making them the most effective engagement channel.
Real-time reach builds loyalty: order updates, driver alerts, booking confirmations, and feedback requests help retain both buyers and suppliers in competitive on-demand ecosystems.
Strategic personalization matters: short, clear messages that show care — like post-stay discounts or referral invites — outperform generic campaigns.
Two-way messaging creates value: SMS is ideal for instant feedback loops, supplier recruitment, and customer follow-ups.
Fallback reliability: even when WhatsApp or data networks fail, SMS ensures critical messages are delivered, making it essential for global scale.
Q&A Highlights
Why is SMS critical for on-demand platforms?
It ensures immediate, reliable communication between customers and providers — crucial for time-sensitive services like ride-hailing, delivery, or bookings.
How does SMS outperform other channels?
With near-universal device compatibility and extremely high open rates, SMS cuts through digital noise and reaches users anywhere, instantly.
What are effective SMS use cases for on-demand apps?
Booking confirmations, delivery updates, driver onboarding, customer feedback, and referral campaigns all benefit from concise text automation.
How can brands combine SMS with other channels like WhatsApp?
By using WhatsApp for richer interactions and SMS as a fallback, businesses maintain continuity and customer trust when data connectivity is unreliable.
How does Bird enhance this process?
Bird provides direct carrier connections and intelligent routing, reducing delivery failures and ensuring cost-efficient, global scalability for all communication flows.
Communication is the single most important pillar of any on-demand platform, and SMS has the power to connect buyers and suppliers to your service faster and more reliably.
Known for their disruptive business models and intense focus on convenience, ridesharing companies like Uber and Lyft have totally revolutionized the customer experience. And, while all their accomplishments are amazing, nothing stands out quite so much as how they’ve kept their on-demand platforms brimming over with both buyers and suppliers.
If you think about it, the on-demand business model really just means connecting demand to supply, but if you don’t invest in drawing enough buyers and sellers into your ecosystem, you won’t succeed.
So, how do you do it? How do you engage and keep the buyers and suppliers you need to build your on-demand platform?
Focus on your customers
Whereas traditional advertising and social media campaigns can be useful to build buzz and create brand recognition, these tactics won’t help you keep today’s on-demand customers. These buyers expect companies like Deliveroo to find them on the communication channels they use with their friends — channels like Messenger or WhatsApp. And, they want their takeout orders delivered with notifications and alerts, and in a fast, seamless way.
SMS can reach these buyers more effectively than any other channel. After all, text messages don’t require an internet connection or app installation, and they’re used pretty much everywhere in the world. SMS messages also have a dramatically higher open rate than any other medium. The highest open rate for emails that we’ve found is 24.82%. SMS stands at 94%.
Be strategic
MessageBird makes SMS easier
Communication is the single most important pillar of any on-demand platform, and SMS has the power to connect buyers and suppliers to your service faster and more reliably. For businesses using WhatsApp, you can leverage SMS as a fallback channel to ensure critical communications always reach their destination.
At MessageBird, we’ve invested in operator licenses, direct carrier connections and intelligent routing technology that saves our customers’ costs, reduces risk, and helps connect people on every continent.
If you want that kind of functionality and value for your business, get in touch!
