Uberfication – Global Sharing Economy Primer

With disruptive business models based on rental, on-demand, gig, access, collaboration, platform, circular and P2P, Felix Tran, thematic investing analyst at BAML, introduces the challenges and opportunities within the companies transforming 21st-century business. These tech-focused models are unlocking the value of unused and under-used assets, driving a shift from asset-heavy to asset-light businesses and enabling access over ownership, says the BAML report. This increasingly growing business model is estimated to be a market of US$250bn but the potential addressable market at US$785bn in the US, US$645bn in Europe and US$500bn in China. By comprehensively explaining sharing economy as an umbrella term which describes a range of market activity transacted over online platforms, BAML highlights the sectors that are more likely to be disrupted: 1) Transportation; 2) Travel, Leisure & Workspace; 3) Food; 4) Retail; 5) Media; 6) Financials. It additionally sets out the challenges including regulation, taxes, workers’ rights and inequality. The Sharing Economy will eventually disrupt most sectors, with more companies needing to re-examine how they create value, argues BAML, believing that many Sharing Economy companies could eventually address trillion+ rather than billion+ dollar markets in the most bullish scenario.