Will the Sharing Economy Last?
Lyft and Airbnb are currently preparing to launch initial public offerings, if they haven’t already. These companies began as new kids on the block that disrupted their markets by giving customers the opportunity to generate more money from their existing assets. The financial world is eagerly watching other companies like WeWork and Uber to see if they will follow in the footsteps of ridesharing startup Lyft, which has been valued at $22 billion through its IPO.
And what at first was a fad that millennials accepted because of its price and convenience has now gone mainstream as larger companies have seen the commercial prospects in the industry.
Urban Outfitters established a service platform where customers can borrow clothes. Hotel industry behemoth Marriott Worldwide is joining the house sharing business to give clients “premium and luxury” homes to rent.
Although a portion of this industry has grown older, it still doesn’t appear to be slowing down. According to Statista data, the global sharing economy will be worth $335 billion by 2025, a significant increase from the $15 billion it was worth in 2014.
The sharing economy’s advantageous and social aspects have undoubtedly grown over time. Businesses that link pet owners with nearby animal lovers who want to spend time with them, such as BorrowMyDoggy and Share Your Pet, have popped up all over the world. As have businesses that seek to simplify customers’ vacation or travel experiences while maximizing everyone’s gains. A company like Camptoo, which connects owners of campers, caravans, and motorhomes with people who wish to rent them out temporarily, is one illustration. An addition is the flight sharing website Wingly, which enables amateur pilots to give local excursions to people in exchange for splitting the cost of the flight’s operating expenses.
The usage of co-working spaces and flexible offices, which go hand in hand with the expansion of flexible working, is one aspect of the sharing economy that has grown stronger and stronger. Similar to how Uber and Airbnb are trying to disrupt traditional sectors, organizations committed to new methods of working are doing the same. According to IWG CEO Mark Dixon, “flexible working will be the norm, not the exception, in ten years. Many will question why you would travel so far to work.
Travel or not
The approach is seen as essential for hiring and retaining top talent at firms like O2, which permits flexible and remote working. According to Ann Pickering, the company’s head of human resources, “you need to incorporate flexible working into an organization’s culture to produce an engaged and responsible staff.”
It has been discovered that giving workers the freedom to set their own work schedules has a favorable effect on their welfare and productivity. Study done by the AAT.
According to a new study, those who have access to flexible work choices like flextime, and non-commuting are happier, less nervous, and more efficient than others who don’t. Also, their work-life balance is better.
According to Kirstin Furber, a former chief people officer of Clearscore, having flexibility at work allows employees to be supported and work when they are most productive. However, it is not without difficulties: She explained to Regus that in order for an organization to be flexible, other elements must be in place. For instance, there is a significant amount of reliance on faith that the task will be completed, a focus on results rather than presenteeism, and defined goals that people collectively create to achieve the overall corporate aim.
Flexibility “may be more of a challenge than a positive without these in place.”
Having said that, businesses are becoming more aware of the overall advantages of allowing their employees to work flexibly. Furber predicts that flexible working will become more tailored as technology becomes more sophisticated and dependable for those who work remotely, real estate costs continue to rise, and the sharing economy expands.
“Organizations will need a lot of flexibility to attract workers, with a mindset that encourages more freedom to allow employees to do their best job,” she added. This will help drive business success and expand our economy.