PwC Says Traditional Rental Sectors are in BIG Trouble!
PricewaterhouseCoopers does some pretty fantastic research and they have been doing some intense research on the impact of the New Economy, the Sharing economy. At this point it’s adapt or perish and we have to take notice. Traditional ways of doing business have been turned upside down. There’s a reason FinTech is the new buzzword…FinTech meaning Financial Technology. This post focuses on the Rental Sector.
Think about AirBnB, Uber, pHlatbed, Lyft, Getaround just to name a few who are full-on disrupting the traditional rental business models. PricewaterhouseCoopers projections point in a singular direction in the image below;
To quote PwC, “Today, we estimate that the five main sharing economy sectors generate $15bn in global revenues, making up just 5% of total revenue generated by the ten sectors we looked at.
However, by 2025, these same five sharing economy sectors could generate over half of overall sales in the ten sectors – a potential revenue opportunity worth $335bn. We estimate the UK’s slice of the pie could be worth around $15bn (or £9bn) in 2025.”….and this is just for the United Kingdom alone. The U.S. runs about 12 times this number.
However, PwC also allude to hurdles the Sharing Economy stalwarts will need to overcome namely; Finance and Regulatory, in addition to scalability and maintaining their position of uniqueness and authenticity. However, with FinTech and Sharing already taking a hold within the legal sector, that issue is becoming a non issue with every day that passes. Notwithstanding, there are still areas that pose a significant friction point. For example San Francisco allowing Uber and Lyft drivers to Unionize, this may require creativity by our Sharing Economy counterparts in terms of lobbying, political engagement, and attaining a voice within the corridors of policy making.
Do you believe traditional business models are in trouble?