The Coronavirus is no exception. To suffer the effects of the pandemic is also the sharing economy. A concept that has established itself in recent decades, but which in the era of social distancing, must necessarily be rethought. Companies like Airbnb and Uber find themselves in a world where the sharing of spaces and transport has to change its meaning.
Due to the restrictions and the growing fear of being able to contract the virus, companies that have based their business on the sharing economy are having to deal with a dramatic and uncertain future.
Airbnb cuts its workforce by 25%., cutting 1.900 employees. The group of rental houses, which this year was preparing to be listed on the stock exchange, however, found itself facing an impossible situation where, between cancellations and restrictions, the demand for rentals has practically disappeared.
Not better for Uber, the app for cars with a driver gets to reduce its workforce by 14%. (about 3.700 workers), with possible further cost cuts. New hires are also blocked, with the closure of 180 sorting centers for drivers. This was announced by Bloomberg, according to an email reported by Dara Khosrowshahi, the company's CEO.
“We are evaluating different scenarios and all costs, both variable and fixed – he comments Dara Khosrowshahi “We want to move quickly and keep as many people in society as possible, treating everyone with dignity and respect.”
The CEO has also waived his base salary for this year. In mid-March, he warned investors of how the lockdown would drastically reduce shared rides, a drop of 70% at the time in Seattle, one of the first American cities to close. The blockade of activities then spread like wildfire throughout the United States, to try to contain the spread of the virus.
Public transportation is seen as one of the biggest potential vehicles for expansion, and so too Uber and its rivals have had to stop in the face of record low demand. Also one of Uber's main competitors, Lyft cuts 17% of all its employees.
But what will the restart be like? After months of blocking activities, we also need to consider how consumers will react to this new reality. Will they be able to trust a sharing service and feel safe?
Predictions are hard to make. There will certainly be a collapse in revenues for 2020 that will put the survival of many of these companies at risk. Meanwhile, they will have to find a way to live with the virus and ensure the safety of all consumers.
