Collaborative economy business to grow 20-fold in a decade

The so-called collaborative economy has led to an explosive development of social and economic practices and uses based on distribution technology and the widespread use of mobile devices. In the next few days, this business model will multiply its revenues by 20 times. A report by the Ostelea School of Tourism in collaboration with IDITUR analyzes the current situation of this segment.

The study of Ostelea School of Tourism & Hospitality “Collaborative Economy Platforms: Una Mirada Global”, has been prepared by Albert Beltran i Cangròs, PhD in Political Science and University Professor, and directed by María del Pilar Leal, of the Center for Research, Dissemination and Innovation in Tourism (IDITUR).

Among other aspects, it analyzes the revenues earned by collaborative economy platforms to identify the sectors with the highest revenues in Europe. The ranking is led by the sector transport, with ?1.65 billion in 2015, followed by accommodation, with a total of ?1.15 billion. The Top 5 is closed by finance, labor intermediation and entertainment. 

The irruption of the collaborative economy has not been without policy. The research points out the contradiction in terms of the income of workers on collaborative economy platforms. With the exception of Airbnb, more than 70% of the people who use these platforms to earn income earn less than $500 per month. Other problems highlighted in the report are the lack of added value in intermediation platforms and the lack of regulation of this type of economy. 

In the European case, in just two years (2013-2015), the total transaction value of these platforms has gone from ?12 million to ?28 million. Their revenues have almost quadrupled from ?1 million to ?3.6 million. In the United States, it is estimated that this economy will catch up with the conventional rental economy by 2025.

The report also analyzes the location of these platforms, with France and Ireland within the European Union, both above 30%. Croatia and Latvia are next with 24%, followed by the Federal Republic of Germany, Estonia and Romania. Spain is close to the latter group with 19%.

In terms of market value, Uber stands out with a market value of 50 billion dollars, followed by Airbnb with 25.5 billion euros. The figures for the other platforms are much lower. This figure indicates the huge concentration of the sector, given that both companies account for 60% of the market value.

SPA A AND LATIN AMERICA

The research carried out shows that in Spain the use of these platforms is still incipient, with only 19% of Spaniards having used them at some time. About the use, there are three main activities: renting accommodation to individuals, crowdfunding and carpooling.

However, more than 300 startups created in Spain are included in the collaborative economy in areas such as carpooling;are included in the collaborative economy in areas such as carpooling or carsharing, crowdfunding, crowdgifting or group gift buying, time banks and knowledge/service exchanges, coworking, accommodation, logistics, clothing exchange, education, food, etc.

Brazil, Argentina, Mexico and Perú are the countries that stand out for their initiatives and drive in this new economic sector. Companies dedicated to the rental of housing and transportation are those that have managed to penetrate with greater force. These new collaborative models are set to spearhead a new economic paradigm in Latin America.