Sharing During the Pandemic: 5 Things to Share

Contents:

• Sharing: Changes and New Horizons
• Investing in scooters and the transformation of car sharing: the new realities of urban mobility
• Coliving: the future of shared housing
• Business trends in the era of sharing

Sharing: Changes and New Horizons

In 2020, the world faced the COVID-19 pandemic, which had a significant impact on various areas economy, including the sharing economy. Lockdowns and concerns about the spread of the virus forced people to rethink their habits, including the safety of delivering goods, such as parcels from China. This created significant challenges for the exchange of goods and services that underpin the sharing economy. The pandemic has exposed the vulnerability of business models based on physical interaction, forcing companies to find new approaches to ensuring safety and trust among users.

According to Airbnb's report, the company's revenue fell by 30% in 2020, with losses reaching $4.6 billion, significantly exceeding the $674 million losses in 2019. Similar results were observed at BlaBlaCar, where user activity also declined by 30%. These data confirm the general trend of declining demand in the tourism and transportation industries during the pandemic.

Despite the challenges, sharing economy leaders not only overcame the crisis but also began to adapt to the new conditions. However, not all startups have successfully overcome the challenges they faced. In 2021, the market lost several significant projects, including Canadian foodsharing service Scarf, the American service Shuddle, aimed at families with children, and Yeloha, a solar panel subscription service. These examples highlight the instability of the sector and the need for innovative solutions to survive in a competitive environment.

Despite apparent stagnation, it would be premature to say that the sharing economy is dying. Many companies continue to find ways to attract investment by adapting their business models to new conditions. Some startups are even showing growth amid the economic crisis. It is important to consider the changes occurring in this market, as well as its prospects for the future. The sharing economy continues to evolve, incorporating innovative services and platforms that meet the needs of the modern consumer. Technological advancements and new approaches to collaborative consumption are opening up new horizons for businesses and users, creating opportunities for sustainable development.

Investing in Scooters and the Transformation of Car Sharing: New Realities of Urban Mobility

With the transition to remote work and changing travel habits of city residents, the mobility market is experiencing significant transformations. In 2020, Moscow recorded a decrease in the number of public transport trips by 8.6 million per day compared to 2019. This change contributed to the growth in popularity of taxis and personal transport. Current trends show that users are increasingly choosing alternative modes of transportation, including car sharing and electric scooters, which is adjusting traditional transportation models and requiring infrastructure adaptation.

In today's conditions, many are beginning to consider the feasibility of renting expensive square meters in large cities. Experts predict that this could lead to a mass migration of residents to calmer and more accessible regions. Affordable housing, improved quality of life, and reduced stress are becoming important factors for people deciding to move. The trend toward moving to less crowded and more comfortable locations could change the rental market and housing demand in megacities.

Electric scooter and bicycle rentals are showing significant growth, according to recent data. GO Sharing, a Dutch startup active in this space, raised approximately $60 million in April 2021 to expand its presence in both Turkey and Europe. This trend points to a growing interest in environmentally friendly vehicles and mobility solutions, making electric scooter and bicycle rentals a promising area for investment and business.

Scooter use is becoming increasingly popular in Russia. In the summer of 2020, kicksharing service Urent attracted 150 million rubles in investment from private investors, and in the spring of 2021, AFK Sistema added an additional 200 million to this amount. Another Russian operator, Whoosh, received 1.9 billion rubles from VTB and Otkritie Bank. Growing interest in scooters in the country demonstrates a trend toward increased mobility and eco-friendliness in urban transportation.

Boris Golikov, co-founder of the electric scooter rental service lite, emphasizes that increased interest in kicksharing is observed among both users and businesses. He notes that electric scooters are an excellent alternative to cars for short trips. Furthermore, electric scooters are actively used by couriers, creating new opportunities for collaboration with delivery services. This trend demonstrates the growing popularity of eco-friendly transportation that meets the needs of modern cities and helps reduce traffic congestion.

The pandemic has had a significant impact on car preferences. In Russia, demand for personal vehicles has increased, while interest in car-sharing services is declining. According to Ipsos, in 2020, US residents began to actively search for information about purchasing cars, with safety being their top priority. These changes highlight the importance of personal transportation during the pandemic, when many are seeking to minimize the risks associated with public transportation and ridesharing.

The carsharing market is adapting to modern conditions. Alexey Sergeev, CEO of CityDrive, noted that 2020 saw significant growth in the long-term rental segment. Users began seeking safer and more reliable transportation solutions. In response to this demand, Sber is launching a long-term rental service, offering car rentals for periods of six months or more. This demonstrates that carsharing continues to evolve, offering customers new service formats that meet current safety and comfort requirements.

According to Bloomberg forecasts, carsharing companies have the potential to become leaders in the integration of driverless cars. Their advantages in fleet management and software development create favorable conditions for the successful implementation of autonomous vehicles. This could transform the car rental market and improve customer service.

Coliving: The Future of Shared Housing

During the pandemic, there has been a noticeable increase in interest in coliving, modern communal apartments. According to TheHouseMonk, the number of coliving operators worldwide increased from 610 to 870 in 2020. This trend indicates that more and more people are looking for flexible and affordable housing options that offer not only comfort but also the opportunity for social integration. Coliving provides convenient living and working conditions, which has become especially relevant in the context of remote work and constant lifestyle changes.

Anastasia Zabolotnaya, Director of the Aparthotel Department at Becar Asset Management, notes that in major Russian cities such as Moscow and St. Petersburg, coliving is becoming increasingly popular among developers. However, many of the projects currently underway resemble clubhouses with additional services, which may limit their appeal. It's important to consider that the right combination of comfort, affordability, and modern amenities is key to the successful development of coliving spaces in cities.

Over time, the coliving concept will evolve, with an emphasis on building a community of residents. This will allow residents to actively participate in events, workshops, and shared living, creating a deeper connection between residents and improving their quality of life. The development of coliving will facilitate the exchange of experiences and ideas, as well as strengthen social ties, making life in such spaces more fulfilling and interesting.

Experts predict an increase in demand for coliving spaces, as millennials, the wealthiest and most numerous group in the population, prefer renting housing. This category of people values ​​community and modern technology, making coliving an attractive option for their lifestyle. Co-living spaces offer not only comfortable living conditions but also the opportunity to interact with like-minded individuals, which meets the needs of the modern renter.

Business Trends in the Age of Sharing

The sharing economy, also known as "sharing," continues to grow, encompassing both individuals and companies. The pandemic, which disrupted traditional connections, prompted many organizations to band together to ensure their survival. In particular, employers began actively sharing resources, which helped minimize layoffs during lockdowns. This collaborative model not only helps companies cope with crises but also promotes more efficient use of resources, ultimately leading to lower costs and increased competitiveness. The sharing economy opens up new opportunities for businesses, allowing them to adapt to changing market conditions.

Collaboration across sectors has become a shining example of a successful approach during a crisis. During the closure of restaurants and cafes, the Metro chain decided to hire employees from companies such as McDonald's, KFC, and other establishments. This decision ensured jobs for people during a difficult period and demonstrated the importance of cross-sector collaboration. This approach not only contributed to maintaining employment but also helped preserve the experience and skills of workers in a context of economic instability.

Modern companies are actively implementing practices for sharing not only human resources but also material assets. They exchange vehicles, expensive equipment, as well as office and warehouse space. As Pavel Fedorov, Managing Director of Space 1, notes, the concept of "Revenue sharing" is becoming increasingly popular in the real estate market. Flexible office operators play an important role in helping find subtenants for temporarily vacant space, which allows for more efficient use of resources and a reduction in costs.

Sharing also includes aspects of intellectual property. Platforms like yet2.com and NineSigma offer companies the opportunity to generate revenue from unused patents by sharing these assets with other organizations. This creates new opportunities for commercializing intellectual property and fosters innovation, allowing companies to effectively manage their assets and expand their market through collaboration with other players. According to forecasts from experts at MIT Sloan Management Review, the B2B sharing market has significant growth potential, potentially reaching trillions of dollars in the coming years. This underscores the importance of businesses adapting to new conditions and shifts in consumer preferences. To successfully implement B2B sharing strategies, companies need to take into account modern trends and implement innovative solutions that will allow them to remain competitive in a rapidly evolving market.