What do cars, apartments, and investments and appliance repairs have in common? They’re all part of Dubai’s growing sharing economy. From ride sharing to crowd funding and nearly everything in between, people who have something to offer are connecting with people that want a service that is faster, less expensive, and of a higher quality than they can get from a standard company.
SHARING ECONOMY SPENDING PASSES $10 BILLION
Within the GCC, estimated spending in the sharing economy has topped $10 billion. While the transportation sector has seen the highest spending at nearly $3 billion, the accommodation section is expected to see the highest rate of growth going forward— whopping 42%. From those registered with sites like Airbnb and Booking.com and the guests that use the sharing economy for accommodations, this growth rate is exciting.
Consumers use the sharing economy for a variety of reasons including lower prices, the opportunity to benefit both the consumer and the producer, flexibility, and convenience. From a producer’s view, the sharing economy provides significant opportunities for generating income, often through resources they already own. Airbnb provides rentals of privately owned residences, Deliveroo brings prepared food to your doorstep, Careem and Carpool Arabia provide carpooling and ride sharing, mrUsta provides household services, and Beehive and Eureeca connect investors with growing businesses.
DUBAI CREATES WELCOMING ENVIRONMENT FOR SHARING ECONOMY
The sharing economy is not without its drawbacks. The biggest challenge is perceived lack of need—many consumers do not see the opportunities within the sharing economy as relevant to them. Someone who has always booked hotels may not see how Airbnb can benefit them. A person who has always counted on their bank to invest on their behalf may not see the need to participate in direct-to-business investing. Once this perception is adjusted—even in just one area—people tend to consistently participate in the sharing economy across sectors.
Dubai is increasingly becoming a welcoming place for the sharing economy. Regulations now allow for platforms like Airbnb to operate across the city, and the government is looking at further regulatory adjustments that will benefit both service providers and consumers. Dubai is also working on an initiative called ShareDXB which facilitates a sharing economy concept across businesses wanting to capitalise on unutilized resources.
AIRBNB PROPERTY MANAGEMENT WITH FRANK PORTER
Frank Porter recognises the challenges required to maximise the opportunity that Airbnb brings to the sharing economy. By offering full concierge services that handle every aspect of Airbnb short-term rentals, any individual with a residence or property that is unoccupied for part of the year can now take advantage of the income-generating platform that Airbnb has created. It is services such as Frank Porter that help connect resources to consumers through the sharing economy, generating mutually beneficial transactions that are becoming a significant part of the overall economy.