The sharing economy will experience substantial growth in the coming years, as players in more established sectors, such as transportation and space or accommodation, will drive their growth.
These findings are drawn from a study conducted by Juniper Research, which in particular estimates that the sharing economy will move from generating a turnover in terms of platform provider revenue from $18.6 billion in 2017 to $40,200 million dollars by 2022.
Market leaders
Some of the most well-sounded names in the shared economy, including Uber and Lyft, have seen that they have been much more accepted and have received much more benefits than expected.
Juniper Research’s research noted that the proportion of these platforms is around 30% per trip, as suppliers take advantage of an established network of drivers.
In addition, acceptance of many major sharing economy services has increased considerably, with companies like Airbnb rising from $2 million at the end of 2015 to 3 million this year.
That is why Juniper believes that the space or accommodation and transport sectors will continue to dominate the distribution industry.
Juniper estimates That Airbnb will rent 5.3 million properties this year. While Airbnb is the most obvious example of shared private space, it’s worth noting that there are other businesses, such as Expedia Inc’s HomeAway and Tujia.com of China, that are not mentioned in the report even though they operate in the same sector as Airbnb.
On the other hand, Uber stands out as the most important player in the shared transport sector, although the existence of Blablacar, Lyft, Didi Chuxing, Ola and Grab is recognized.
Growing sectors
Juniper’s research, on the other hand, identified corporate space as the next high-growth sector in the sharing economy, an area that is developing very rapidly.
The research’s author, Lauren Foye, explained: “The exchange of corporate space across platforms such as WeWork and PivotDesk is the next area of growth for the shared economy, with entire buildings such as blocks of equipped offices and prepared to share them.”
A good example of this booming segment is WeWork, a platform on which the Softbank fund invested $3 billion in February 2017. As a result, Juniper anticipates that this niche collaborative business will present substantial returns of more than 10 billion by 2022.
WeWork
WeWork is an office rental startup, and according to data it is today the fifth most valuable startup in the world. Valued at $20 billion, the company surpasses the market caps of Twitter ($12.96 billion), Box ($2.44 million) and Blue Apron ($1.54 billion) together.
Founded in 2010, the company has more than 120,000 members in 156 offices around the world. Entrepreneurs, freelancers and remote workers who maintain a base at WeWork always receive a variety of amenities such as free coffee, meeting rooms, networking events, etc.
On the other hand, the company has increased its offer over the last year. WeLive, a branch of WeWork revolutionized the concept of hacker-house. In addition, a new business business places Microsoft employees in WeWork offices in four major cities. In May, WeWork also entered the fitness business. The company plans to open a permanent gym, WeWork Wellness, in a New York City office.
The company has recently partnered with two of its sponsors for a $500 million investment to expand its business in China. WeWork will be responsible for the management and operations of WeWork China with SoftBank Group Corp. and Hony Capital, each with minority stakes.
The funds will allow it to expand its presence in China beyond Beijing, Shanghai and Hong Kong which is where it currently operates. WeWork expects to have 10,000 members in China by the end of this year.
