Pandemic flattens the sharing economy

Pandemic flattens the sharing economy
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The “sharing economy” — as embodied by companies like Uber, Airbnb, and WeWork — is in critical condition, thanks to the coronavirus pandemic.

Why it matters: Basic assumptions about the evolution of human behavior in the digital age are melting under the pressure of COVID-19, requiring us to recalibrate how we envision the tech-enabled future.

Driving the news:

The pandemic has brutally shut down these companies’ fundamental bets.

  • Right now Americans simply aren’t leaving home much, and when they do, they will drive in their own cars if that’s an option. (They may still prefer ride-hailing to mass transit, or be left with no other option in places where transit routes have been drastically cut back.)
  • Minimal travel means little demand for short-term rentals. And thanks to work-from-home orders, there’s little demand for co-working space.

The big picture: The sharing economy — an idealistic vision birthed and branded in the late 2000s, during the last economic crisis — held that Americans were moving beyond an ethos of acquiring and protecting stuff.

Source: Axios

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