Future of shared economy

The pandemic of Coronavirus has had a global impact both on the lifestyle of people as well as the economies which need to maintain a balance in order to survive. Post the lockdown, many of the corporate sector firms will need to change their strategies in order to overcome the losses. Talking about the shared economy, should coworking and coliving work together post the ongoing phase of lockdown?

The coronavirus is a major health crisis for the world leaving all in panic and utter chaos. We have been sitting at home for more than 30 days now and the lockdown might extend far beyond May 3rd 2020 with the number of cases in the country rising rapidly. Our lives have been affected by the ongoing crisis manifold —  whether it’s working from home or maintaining hygiene in and around us. But as we approach closer to the end of the lockdown, the corporate sector will have to plan a strategy to get back on the track. Such is the case with the shared economy these days. 

The coronavirus threat is real and it is one of a kind global scenario which has affected the entire world. All the nations across the world are involved with more than 3 Million positive cases detected so far and leaving more than 200,000 casualties. The world is suffering —  there is no doubt about it! But the dire need of the hour is to decide on how to cope up with the ongoing crisis. The economy is suffering widely with all top companies and firms doing their tasks at home during the phase of lockdown. At the same time, sectors like tourism, real estate, and many others have to completely close down their operations. Yet there is definitely room for the shared economy with two companies working together to cope with the ongoing scenario. So what exactly is a shared economy?

What is a shared economy?

A shared economy or a sharing economy is a type of economic model commonly being adopted by the corporate sector worldwide. It is defined as a peer-to-peer business model (P2P) based on activities like acquiring, providing and sharing goods and services. This is supported by an online community-based platform. Though most of us in the corporate world are already familiar with the concept of mergers and acquisitions, a shared economy is a whole new concept. This concept, also known as collaborative consumption, has overtaken many businesses worldwide. Yet a number of factors need to be considered when businesses opt for sharing economy like trust, efficiency, and most importantly being in the same community or niche. 

When talking about the ongoing global pandemic of COVID-19, which has led to most businesses managing their affairs through work from home, the productivity has gone down tremendously. Yet after exiting from the long-standing phase of lockdown, businesses will need to boost up their work and come up with a new strategy to cope up with the losses. And, the best way can be when two firms in the same niche come together to work in a shared economy.

The scope for the Coworking industry

Coworking

The coworking industry is one of the fastest growing industries in India. Initially a concept, the coworking industry has now become a culture among millennials, especially the ones looking out to start afresh in big cities like Bengaluru, Pune, and Hyderabad. Imagine thinking about your own startup with a little investment but finding a professional space to work can be hard. This is where the concept of coworking comes into play. 

But talking about the current scenario of lockdown and the ongoing health crisis, the coworking industry, too is finding it hard to survive. According to the Economic Times, the coworking industry has witnessed almost 50% dip in footfalls in recent days. But what happens once the lockdown is lifted? Will the coworking industry be able to cope up with the losses. If yes, sharing economy with other spheres like the coliving industry can help the coworking industry get back on the track. We will discuss more on that later. Let’s first focus on the scope of the Coliving industry post the phase of lockdown. 

The scope for the Coliving Industry

fully furnished coliving space vs PG in Bangalore

Much-like the Coworking sphere, Coliving too is a brand new concept which is taking the world by storm. As the name suggests, Coliving means community living or in other words, it is a community where like-minded people living together. Preferred over PGs and apartments by millennials and the working people in big cities like Bengaluru, Chennai, Hyderabad, and Pune, coliving is helping them get affordable rental homes in prime locations near their workplaces with premium amenities. But has the recent COVID-19 crisis affected the Coliving Industry as well?

Definitely, yes. But, we also believe that there is a lot of scope for this industry post the phase of the ongoing crisis. We have a strong belief that the following will be the fallout of these events:

1. With unorganized players chasing tenants without notice, there will be a great demand for professional Coliving.

2. “Clean, Hygienic and Safe” will suddenly become the mantras of house hunting for everyone. When residences start offering this, tenants will lap it upon their return.

3. Capital outlay of consumers for the purchase of a real estate will be the first one to get postponed in such uncertain times. This directly means demand for rental housing will go up in urban markets with migrants over the next few years!

This means that overall, Coliving industry will definitely have a strong wicket post the phase of lockdown and COVID-19 crisis. Yet the industry will need some time to get back on the track, coping up with the losses born so far. The best way for Coliving industry to get a boost will be a shared economy, especially with an industry like coworking.

What does Colive believe about the future of the shared economy?

A large part of the shared economy has been affected by the ongoing health crisis and lockdown. People have been staying at home and industries like coworking and coliving depend on these millennials to run their businesses successfully. Where on one hand, the coworking industry relies heavily on millennials looking for shared working spaces, the coliving industry too requires new tenants to move-in in numbers rapidly to keep up with the pace of growth. But this pace has been slowed down in the current crisis, with less potential customers. 

Suresh Rangarajan, CEO, Colive
Suresh Rangarajan, CEO, Colive

Suresh Rangarajan, the Founder and CEO at Colive spoke with Entrepreneur Media on Monday, 27th April 2020, over a virtual conference over the future of the shared economy. On the future of Colive, he said,

“Coliving will surely become a business continuity plan for many corporates, especially in the ITBT Sector. People looking for a place to stay will surely look at flexibility as an important criterion and will tend to move from an unorganized to an organized plane.”

The global pandemic of coronavirus shook the entire world. It has not only triggered a global health alarm but has also alerted the corporate sector in two ways. Firstly they are suffering huge losses and secondly they now need to make sure that their employees are safe. Sharing his views on the same, Suresh said:

“Corporate Sector will now be concerned about where their employees are living to ensure that the infrastructures are in place not only the workplace but also the living spaces. They, now need to settle down and figure out if their employees are living near their IT Parks, it is actually going to be a saving in terms of transportation and time.”

After a long phase of COVID-19 lockdown, it is expected to be lifted from May 3, 2020. The corporate sector will now need to figure out a way to cope up with the losses. Many of the previously used strategies will be changed. The corporates will now start to look for new possibilities in the shared economy. Talking about the same, he added: 

“Beyond the next couple of years, many of our Corporates will also start looking at an integrated campus. This means that they will want their employees to stay in the same micro-markets and walk to work because using public transportation in a couple of days will also come under stress, based on the social distancing norms.”

Should the industries of Coliving and Coworking work together post the phase of lockdown? And, how would this happen? Suresh explained:

“Including coworking spaces within coliving spaces will become a trend post the phase of lockdown. People will prefer to stay near their workplaces and they will want to walk to work for the perception that public transportation is unsafe and also fearing to share a ride too.”

Overall, there surely seems hope for both the coliving and coworking industries working together as partners in the near future. Not only these industries have suffered losses with falling customers base but both need to cope up with the losses. A shared economy where both these industries work together seems to be a better way to get through the losses suffered in the phase of lockdown. Surely, working together as partners will mutually benefit both these industries. 

In the ongoing crisis, Colive continues to care for the safety and security of its residents. While many worry about a safer stay, we continue to provide residents with a hassle-free premium stay at an affordable price with top-notch safety near IT parks and top corporate offices. We not only provide our residents with a hassle-free stay but also offer them a high-speed internet 24×7 to let them have a stress-free work from home and bide their time in their facilities during the phase of the ongoing crisis and lockdown. Visit the website of Colive to know more!