Washington (AFP)
"The sharing economy", embodied by companies like Uber and Airbnb, was growing exponentially and was projected to transform entire economic sectors. Then the coronavirus struck.
These companies are now losing more money than ever before, laying off workers and seeing their profit expectations lower due to economic uncertainty.
Sharing platforms had "huge momentum" in industries like transportation, tourism and even ready-to-wear before the pandemic, according to analyst Steve Barr of PwC, who once predicted that the economy sharing would generate 335 billion in revenue by 2025.
"I think there is going to be a dramatic change in consumer behavior," he said today.
The latter could for example move away from cities and their density, while urbanization is one of the key factors in the development of the sharing economy. Just like the lifestyle of many metropolitan residents, some of whom have chosen not to own a car or other.
- The blues of VTC -
Uber said in its quarterly report that it lost nearly $ 3 billion and that its bookings fell nearly 80% in April, forcing it to lay off 14% of its staff.
At the same time, the group said it saw strong revenue growth from its food delivery operation, UberEats.
However, according to an IBM survey, more than half of people using car sharing apps were planning to reduce or even stop using these services altogether.
"Users will continue to be very reluctant to get in a car with someone they do not know for fear of being infected, which will not change until there is a vaccine," says analyst Richard Windsor on his blog.
Arun Sundararajan, professor at New York University and researcher on the sharing economy, says despite being rather optimistic for the companies concerned.
"I think we will see a shift towards more control of personal space," he explains. "Many people will distance themselves from public transportation in densely populated areas."
This could attract more customers to Lyft and Uber as well as to "micro-mobility" platforms for sharing bikes or scooters, which the two companies also offer.
Sharing cars with others, on the other hand, would take longer to see the return of customers.
- Restore confidence -
With the collapse of the travel industry, the rental platform Airbnb, it has laid off 25% of its employees.
But according to Mr. Sundararajan, the future may not be so bleak for the group, which has over the years been able to build a relationship of trust with its users. The platform has unveiled new health rules, including guidelines on leaving empty accommodation between two reservations.
"As people resume travel, they will be directed to spaces over which they will feel they have control," he said.
"They won't want to walk through crowded hotel reception areas or spend time in places they don't know who they've been to."
According to him, Airbnb could be better placed than certain hotel groups "because it does not count on extremely high occupancy rates to make its economic model work".
As in other sectors, the sharing economy will have to restore confidence to find its customers.
"Platforms are better placed to manage uncertainty and rebuild confidence because it has been doing this for the past decade," said Sundararajan.
But economist Lucas Coffman of Boston College says regaining confidence can be difficult, noting the rating system adopted by online platforms.
"You also need to trust everyone who has occupied the seat before you," he says.
The fact remains that in the name of security, certain sectors of the sharing economy could emerge strengthened from this period, according to Mr. Barr of PwC, such as the rental of jets or luxury cars.
© 2020 AFP