Working goes sharing
Sharing economy global provider revenues will total $40.2 billion in 2022, up from $18.6 billion this year. Growth will be driven by players in more established sectors – such as transport and living space – pressing their first mover advantage, says Juniper Research.
The research firm notes that some of the sharing economy’s biggest names, among them Uber and Lyft, have seen much greater returns from driver operations than expected. Their take now stands at around 30% of each journey as the providers capitalise on established driver networks. Also, uptake of many leading sharing services has spiked considerably, with listings on Airbnb growing from 2 million at end-2015, to 3 million this year.
Juniper reckons corporate space will be the next fast-moving business space sector.
“The sharing of corporate space via platforms such as WeWork and PivotDesk is the next growth area of the sharing economy, with entire floors of office blocks kitted out and primed for office sharing,” notes research author Lauren Foye.
Investment is ramping up, with Softbank pumping $3 billion into WeWork in February in anticipation of sustained growth in the flexible rental of high-spec, modern office properties. Juniper finds that the sector will provide substantial returns of over $10 billion by 2022.
Over one-third of office space in New York, Los Angeles, Chicago and San Francisco is now co-working, with the workspace market in each of those key cities growing more than 15% in the past year.