Safe Sharing Economy After COVID-19
Can the sharing economy survive in a world after COVID-19?
May 14, 2020, Marianna Mäki-Teeri
The sudden drop in consumer demand is devastating to the growth and potentially hinders the development of the sharing economy as a whole. As long as the need for social distancing remains, financial damages are inevitable to companies whose sharing services are focused on travelling, vacations and social gatherings.
Coronavirus has wrecked the sharing economy
"The most valuable companies driving the growth of the sharing economy are struggling.
The disruptors of the travelling and hospitability industries have been disrupted themselves heavily by the pandemic. The key ride- and home-sharing companies, such as Lyft, Uber and Airbnb, have suffered a dramatic downturn after the lockdown orders and travel restrictions took place in their key market areas.
The sudden drop in consumer demand is devastating to their growth and potentially hinders the development of the sharing economy as a whole. As long as the need for social distancing remains, financial damages are inevitable to companies whose sharing services are focused on travelling, vacations and social gatherings.
Many of the pioneering companies will probably be able to recover from the crisis, but the changes they will undergo will span beyond the immediate time of the pandemic. Consumer behaviour and expectations are likely to be altered for several years to come. The shared memory of the pandemic and its consequences will remain long after the disease is defeated.
This won’t be an issue for the private companies only but also concerns public services built around sharing the same vehicles and facilities. If the fear of sharing escalates, it could mean, for example, that a larger group of people could start preferring owning a car over the option of using ride-hailing or public transit.
It is clear that for now, and many months to come, sharing doesn’t feel like caring if it involves the high risk of spreading or getting a life-threatening virus.
The future of sharing economy is bright for those able to offer affordable and convenient services which also provide a sense of safety for their users. Is your organisation ready to answer the new service expectations and win consumer trust on your side?"
Senior Manager, Foresight Analysis
Check out the "COVID-19 - The World After" on Futures Platform. Read more.