Peer-to-peer, community-based platforms have grown significantly over the years with increased interest from investors and consumers. With remarkable potential, the emergence of the shared economy, governments and economic ecosystems in Dubai is in its element, with companies like Careem, Deliveroo, Privilee and AirBnB taking the read. With most of these platforms emerging without a single dollar of investment in infrastructure, 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. 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.
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 sector is expected to see the highest rate of growth going forward— a 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. 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 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.
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.
Anna Skigin, CEO of Frank Porter comments “It is a great time to be part of the growing sharing economy in Dubai – with an anticipated 20 million tourists in 2020 compared to the 15 million in 2016, we believe sharing economies like AirBnB will continue to grow at a rapid rate. Airbnb homes can be attractive for price-sensitive business and leisure travellers as rates for serviced apartments and hotels often exceed rates of holiday homes and we plan to continue to capitalise on this. We have seen more and more interest in this topic over the past 2 years – and are certain that this will continue to grow beyond Expo 2020”