'Sharing economy' goes mainstream as IPOs loom - SABC News - Breaking news, special reports, world, business, sport coverage of all South African current events. Africa's news leader.

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‘Sharing economy’ goes mainstream as IPOs loom The “sharing economy” is becoming mainstream with the anticipated stock listings from services such as Uber, Lyft and Airbnb, signs that the trend is gaining momentum and impacting multiple sectors.

These multibillion-dollar online platforms have already been a disruptive force in many economic segments, and analysts say the public listings may be a watershed moment, likely to fuel even more changes.

Lyft, the large US ride-hailing service and Uber rival, became the first to announce its initial public offering , seeking to expand a firm valued privately at more than $15-billion. Spending for “on demand” on services such as Uber and Airbnb and other digital platforms rose 58% in 2017 to $75.7-billion in the US, with more than 41-million consumers participating, according to a survey by Rockbridge Associates.“I don’t see these firms as the next Amazon or Apple, because they are carving out narrow marketplaces and will start experiencing competition from traditional providers, some of which are quite savvy,” he said.

Tech research firm RethinkX predicts that the number of cars in the United States will drop by more than 80% by 2020 and 95% of travel will be using on-demand autonomous electric vehicles. Benjaafar noted that Uber and Lyft have piled up huge losses while Airbnb has been profitable, they revolve around the same concept.

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