Back in the day, we had taxi cabs and hotels, restaurant delivery service and take out. We still have all those things, but the sharing space has slowly but surely carved a significant space in the market. In various verticals, companies are shaking up the traditional business model in many ways.
Here’s a rundown of some of the most prominent peer-to-peer companies changing the status quo via sharing services.
Uber for Car Rides
According to the BusinessofApps, Uber generated US$31.8 billion in revenue in 2022, which marks an 82% increase over the year prior (though this marked increase may have something to do with COVID declines the year prior as well as an uptick in food delivery). Revenue was US$14 billion from hailing rides alone. A total of 131 million people use Uber or its Uber Eats service at least once a month. Drivers, meanwhile, completed 7.6 billion trips in 2022, up from the previous peak, which was 6.9 billion trips in 2019 prior to COVID.
How it works: Launched in 2010, Uber has become a thorn in the traditional yellow cab industry’s side. While the taxi scene is still thriving, there’s no denying that Uber has had an impact.
The concept is simple: everyday individuals use their personal vehicles to pick up and drop off people, just like a taxi. The ordering for a ride is all done through the app, including payment via credit card loaded into the account, which means no money or physical credit card payment process is needed. There are added advantages, too, like the ability to see an estimated time of arrival in the app, including a map and real-time image of the car arriving. You see the driver’s name, license plate number, and make or model of the car as well as their driver rating. There’s also a phone number should you need to contact them (or they you).
You can request a certain type of car, share a ride with someone else along the route for a reduced fee, and even set up a teen account to ensure a safe ride for young ones.
The downsides: Pricing fluctuates and there’s something called surge pricing. While you can get around downtown Toronto on the cheap during a Monday afternoon, for example, late Saturday night will cost you significantly more. Meanwhile, there have also been horror stories for riders and controversies with drivers alleging everything from poor pay and working conditions to insurance issues.
Bottom line: Uber has, for the most part, been a success. It’s not only a convenient way to get around, it also presents a lucrative opportunity for people to earn money on the side through what has now become known as the “gig economy.” Nowadays, you may find traditional yellow cab taxi drivers working for Uber as well as competitors like Lyft too.
Uber Eats, SkipTheDishes, DoorDash for Food Deliveries
Uber doesn’t just play in the taxi game. The Uber Eats service will bring you virtually any type of meal, even convenience store items, groceries, and liquor, right to your door. And it’s not alone in this space.
How it works: Similar to the Uber car service, drivers visit restaurants to pick up a meal you have ordered and deliver it to your door. You can choose porch drop off so you don’t even need to greet them. Funds are automatically paid through the app and your credit card, and you can choose to leave a tip of your choice. Restaurants pay to play but the exposure for some is necessary to compete.
It’s a simple system albeit more expensive than calling a pizza place to have them deliver direct. For some, however, the extra few bucks is worth the convenience. Uber also has a subscription option called Uber One whereby you get free delivery, special deals, and reduced pricing (this combines Uber Eats with Uber car rides as well).
Uber Eats has competitors like SkiptheDishes and DoorDash. With all of them, you download the app, browse through restaurant types, specific restaurants, and full menus to place your order. In August 2023, DoorDash added the option to have LCBO products delivered, perfect if you have guests coming for a gathering and forgot to restock the wine cabinet.
In Canada, SkipTheDishes is tied with Uber Eats as the two dominant food delivery services. According to a 2023 Statista survey, 46% of Canadian consumers reported ordering from SkipTheDishes in the past 12 months, and the same percentage said they did from Uber Eats. Madeinca.com reports that Canadians spent $4.7 billion on online food orders, which may also include online grocery orders, in 2019. Statista projects that the market will reach a revenue of $12.75 billion in 2023, with an expected 21.9 million customers expected to enter the meal delivery market by 2027.
The downsides: Drivers take the jobs they want but are reportedly mostly paid based on tips. Factoring in the cost of their time, wear and tear on the vehicle, and gas, some question just how profitable being a food delivery driver actually is.
Bottom line: Whichever service you use, it’s a great way to get a fresh, hot meal quickly when you just don’t have time to cook. And it beats calling the restaurant, dictating your order, and scanning your credit card at the door as was done in the past.
Turo for Car Sharing
I recently tried Turo for the first time when my car was in the shop for brakes work. Turo is a car sharing service that works similarly to a car rental service. Except private vehicle owners offer their cars for short- or long-term periods.
Why would you want to do this? According to Turo’s Car Ownership Index, which includes data via a survey of a representative sample of 1,500 Canadians, 39% of people are less likely to buy or lease a vehicle this year because of the recent rates of inflation. More than half (55%) of those who currently own or lease a vehicle say they probably won’t again in the future because of these high costs. Most concerning for Canadians is the high cost of monthly payments.
Of course, for a service like Turo to work, there needs to be individuals who do own cars. Interestingly, the survey found that while the average Canadian spends $4,810 each year on their vehicle, it sits idle for 96% of the year for many of them. The idea with Turo is to take car owners who don’t use their vehicles all the time, or multi-vehicle households, and allow them to earn income from these cars when they don’t need them.
How it works: Visit the website and choose from standard sedans to large 8-seater vans for a road trip, muscle cars, trucks, and more. You can filter by everything from car seats to electric vehicles, manual to automatic transmission, unlimited kilometers, and even year or make and model. Search in your area or an area you’ll be traveling to and set up a pick-up location based on options provided by the owner. You can also pay a bit extra to have them drop the vehicle off and pick the vehicle up at your door.
There’s a bit of a process to get started, including uploading images of you as well as your driver’s license to identify yourself, uploading photos of the vehicle before and after drop off, and coordinating with the owner. But once set up, it’s smooth sailing.
I had so much fun with a 2022 Ford Mach E electric vehicle I used for three days. The experience with the owner was fabulous; I made a point to choose an owner with a high star rating.
The downsides: There’s no guarantee every experience will be the same, but by choosing owners in your area and based on ratings from previous customers, you’re bound to have a positive experience. Just make sure to opt for the insurance package. It adds to the bottom-line cost, as it would with a standard car rental service. But it provides peace-of-mind.
Bottom line: Turo is an alternative to traditional car rental services, but it’s also a cool option if you just need a car to zip around the city for a weekend, in a different city or country, or want to gift someone a weekend with a car they’ve been dying to drive (think high-end luxury vehicle). In a day and age when experience gifts are sought out, a weekend getaway with a Turo car rental is a unique option.
AirBnb for Home Rentals
AirBnb has become part of common vernacular nowadays. Like with the other services, however, the public was skeptical about the concept. Nonetheless, the company reports that it has more than seven-million active listings that have served more than 1 billion guests in over 220 countries and destinations.
How it works: People rent out their homes, apartment, cottages, or rooms of their homes to others for short stays. It’s not a hotel so you have to clean up for yourself. But you also have amenities like a full kitchen, driveway or parking spot, and more. Usually, the homeowner will leave you the key or entry code and you never see them. It’s a great way to stay in a desired area and save a few bucks versus an expensive hotel.
The downsides: You need to read the fine print: some AirBnbs, for example, might indicate that you have to bring your own bed sheets and towels. And it’s always buyer beware. There have been horror stories about double bookings or last-minute cancellations, terrible conditions, and homes that don’t look like they do in the photos. Since this is by and large a private home sharing service, you won’t get a concierge at the door, and Airbnb might step in if it’s a serious issue. But otherwise, you’re largely on your own. There are also some hosts who rent out things like apartments when they are not permitted to do so. It’s important to do your research before booking.
Bottom line: Airbnb has become yet another source of lucrative income for individuals who either do this as a full business or on the side. For travelers, it’s an affordable alternative that saves a few bucks and allows you to enjoy everything from a full kitchen to laundry area, large TV, and more space, especially for larger groups. The hotel business continues to thrive, but Airbnb has opened a whole new world of possibilities.
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