If you’re not familiar with the term “sharing economy” by now, then you’re unaware of the trend driven by companies like Uber and GrubHub. The sharing economy is a term used to describe “an economic system in which assets or services are shared between private individuals, either free or for a fee, typically by means of the Internet.” And there are five key trends driving this behemoth one.
OilPrice.com, gives us these five, which are leading the sharing economy race.
1. Delivery on Demand
One sharing economy company that has investors excited GrubHub.
GrubHub’s new strategy of establishing partnerships with people in (very) high places guarantees that they will stay at the top of the sharing economy food pyramid, allowing them to keep their competitive edge over like-minded companies like Doordash and UBER Eats. if an investor wants to get into the sharing economy with a strong, reliable stock, they just can’t do better than GrubHub.
2. Evolving Ridesharing
OjO Electric Corp. is an unsung hero in the sharing economy race. But even small start-up companies are getting multi-billion dollar valuations. Here we’re referring to electric scooters, which are set to transform part of the $7 trillion mobility industry.
Most people have probably seen shareable scooters popping up in cities everywhere, and they may be one of those who can’t stand them. But OjO Electric Corp. is doing things differently. Seeing the incredible business opportunity offered by the sharing economy, OjO has invested in a better, faster, and more efficient scooter.
According to the report, their tech is better, their scooters are safer, cities prefer them to other companies that just drop off their scooters and walk away…and consumers absolutely love them.
Because of their forward-thinking method of recharging the scooters by switching out batteries instead of taking scooters off the streets to recharge them, they’re already set up with a MUCH more lucrative business model than Bird and Lime. What’s more, they’re building alliances with the cities that they’re established in.
3. Crowd-Sourced Loans
While GrubHub is the obvious example of a reliable sharing economy stock, Lending Club is for a very different kind of investor. Fintech stocks are currently an ideal sector for investors who can stomach a fair amount of risk in exchange for high rewards.
4. Online Job Boards
This June, Fiverr , an online platform that connects freelance workers to companies with projects that suit their skills, made headlines with its IPO.
On its first day, Fiverr stock opened “at $26, 24% above its $21 initial-public-offering price, and kept rising to a close of $39.90, 90% higher than the IPO price.” Fiverr stock prices have since leveled out, but projections for the company’s future in a fast-growing gig and sharing economy are decidedly strong.
Revisiting the status of Fiverr stock this month, four months after their incredible IPO and first day, Seeking Alpha branded the stock as an “exciting growth play that takes patience.”
Seeking Alpha goes on to report that “As of Q2 2019, revenue has grown by over 40% YoY, better than the expected full year outlook of 36% YoY.” Not bad at all for sophomore quarter slump.
For those seeking immediate returns, a fast-growing company like OjO Electric Corp is a better bet, but for those willing to wait for a solid return on their investment, an investor could certainly do worse than Fiverr.
5. Democratizing E-Commerce
Shopify, the Canadian e-commerce company that allows for real-time e-commerce, and used by companies including Tesla, Budweiser and Red Bull, among many others, makes purchasing goods and services easy for anyone – and in a time where convenience is king, Shopify surely has staying power.
In addition to its revolutionary approach on e-commerce, Shopify is also delving into blockchain technology, making it a promising pick for investors, especially given that the sector is red hot right now.
By: Meredith Taylor, for OilPrice.com