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Share Economy 2017 The New Business Model

This report analyzes the size and the acceptance of the Share Economy in the six European countries Austria, Belgium, Germany, the Netherlands, Switzerland and Turkey. It explores current status, growth, success factors for further breakthrough and mass acceptance.

Share Economy 2017 The New Business Model

This report analyzes the size and the acceptance of the Share Economy in the six European countries Austria, Belgium, Germany, the Netherlands, Switzerland and Turkey. It explores current status, growth, success factors for further breakthrough and mass acceptance. Share Economy 2017

Published by PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft

By Prof Dr Nikolas Beutin

February 2018, 58 Pages, 7 Figures, Soft cover

All rights reserved. This material may not be reproduced in any form, copied onto microfilm or saved and edited in any digital medium without the explicit permission of the editor.

This publication is intended to be a resource for our clients, and the information therein was correct to the best of the authors’ knowledge at the time of publication. Before making any decision or taking any action, you should consult the sources or contacts listed here. The opinions reflected are those of the authors. The graphics may contain rounding differences.

© February 2018 PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft. All rights reserved. In this document, “PwC” refers to PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft, which is a member firm of PricewaterhouseCoopers International Limited (PwCIL). Each member firm of PwCIL is a separate and independent legal entity. Preface

Preface

Sharing of files, music, cars, Also, the different industry segments All in all, we believe that the future accommodation, machines and other within the Share Economy are at very looks extremely promising for future things has become an indispensable different maturity levels. Moreover, Share Economy growth and acceptance and virtually irreplaceable part of many regulations and technological in the six countries. people’s increasingly digital lifestyles. possibilities as well as the so often looked In fact, most of us cannot imagine living at start-ups and platforms for the Share Please reach out to us for a discussion on and especially traveling without shared Economy differ greatly per country. the results of this report. products and services. In the final analysis, there is to our Just as smartphones disrupted knowledge no currently valid and photography and displaced private film reliable market study to really estimate and photo cameras, the Share Economy current and future market size of the Prof Dr Nikolas Beutin has a disruptive potential of displacing Share Economy in the different industry Customer Practice Leader PwC Europe people’s ownership with temporary use segments. of products and services. The present report aims to analyze what In theory the Share Economy is really matters to customers and providers supposed to: with regard to the Share Economy. It • Save resources, seeks to explore factors that are highly • Strengthen regional and local relevant for its further growth. communities, • Save costs, In this report, we look at the Share • Enable consumption for lower income Economy in the following industry groups, segments: • Increase investments, • Media and Entertainment, • Provide new jobs, • Hotels and Accommodation, • Ensure access and • Automotive and Transport, • Ultimately generate more freedom. • Retail and Consumer Goods, • Services, But how does the reality look like? • Finance, and The reality assumes different forms • Machinery. in different countries: Share Economy is mainly attributable to selected The report is based on a representative population segments and cannot live survey of over 4,500 consumers in up to its ecological original philosophy. the six countries Austria, Belgium, Also, it is moving more and more from Germany, the Netherlands, Switzerland its peer-to-peer (P2P) beginning and and Turkey carried out by the market original idea to professional providers research institute Faktenkontor GmbH (B2C) – a similar development has been between June and August 2017. seen at auction platforms.

Share Economy 2017 5 Table of contents

Table of contents

Table of figures...... 7

A Share Economy widely accepted and used...... 8

B Share Economy 2017 – Country Deep Dive...... 17 1 Germany...... 18 2 Austria...... 21 3 Switzerland...... 24 4 The Netherlands...... 27 5 Belgium...... 30 6 Turkey...... 33

C Share Economy 2017 – Industry Deep Dive...... 36 1 Hotels and Accommodation...... 37 2 Automotive and Transportation...... 39 3 Retail and Consumer Goods...... 42 4 Services...... 45 5 Finance...... 48 6 Media and Entertainment...... 51 7 Machinery...... 53

Contacts...... 56

6 Share Economy 2017 Table of figures

Table of figures

Fig. 1 Share Economy usage within the different industry segments...... 9

Fig. 2 Average frequency of Share Economy usage within the different industry segments per user...... 10

Fig. 3 Current and planned average Share Economy spending per user by country...... 11

Fig. 4 Differences in Share Economy spending per gender by industry...... 12

Fig. 5 Percentage of overall Share Economy usage and spending of user segment <40 years...... 13

Fig. 6 Percentage of overall Share Economy usage and spending of user segment with higher education...... 14

Fig. 7 Perceived benefits from Share Economy usage...... 15

Share Economy 2017 7 Share Economy widely accepted and used

A Share Economy widely accepted and used

8 Share Economy 2017 Share Economy widely accepted and used

Almost every second respondent Fig. 1 Share Economy usage within the different industry segments has used Share Economy offers during the last year. Media and The Share Economy is today already 28% Entertainment widespread. Almost every second respondent of our survey is already familiar with Share Economy – Accommodation 20% 44% have used appropriate offers during the last year. Indeed, all consumers are Transportation 19% excited about the personal benefits of participating in the sharing economy. Retail and 19% Expressed herein is the key enabler for Consumer Goods Share Economy’s success namely the reorientation of thought with regard Services 14% to personal possessions. Young people in particular pay higher attention to an improved quality of life instead of Finance 11% accumulating wealth and material property as status symbols. For them it is more important to live intensively Machinery 10% by using resources effectively than only to work instead of experience merely to chase values. Owning things is perceived as emotional baggage that But why are some offers more attractive keeps you from living – sharing means than others? Of course convenience being free to do whatever you want. and cost-savings are important factors but the growth driver is trust. It is the This process is the basic prerequisite basis of feeling reassured about wearing for the success of business models like clothes, staying in the house or getting Share Economy because if owning value help from someone we have never met does not play an important role this before. So while in some industries the shifts the focus away from purchasing to personal risk regarding disadvantages experiencing. by using offers is low – for instance in the Media and Entertainment industry – With regard to the considered industries there are others with higher limitations the respondents are currently more or and boundaries that need to be less familiar with utilization. Media discerned and overcome. Across borders and Entertainment offers appear to more and more people have confidence be most attractive – in comparison to in Share Economy and plan to use offers the other industries the utilization is during the next year in all industries, by far the highest with 28%. Hotels with Media and Entertainment (–2%pt) and Accommodation offers reach the as an exception. Service (+7%pt) and second highest usage (20%) along with Hotels and Accommodation (+6%pt) Automotive and Transport (19%) and can expect the highest increases Retail and Consumer Goods (19%) followed by Automotive and Transport almost on a similar level. The Services (+5%pt) and Machinery (+5%pt). In the sector achieves a usage rate of 14%. industries Retail and Consumer Goods Overall, Finance (11%) and Machinery (+4%pt) as well as Finance (+2%pt) (10%) offers show the lowest Share the number of users will increase more Economy usage rate today. moderately during the next years.

Share Economy 2017 9 Share Economy widely accepted and used

The increasing number of Share Based on a cross-border average users Media and Entertainment consistently Economy users during the next years is utilized Share Economy offers 35 times shows the highest frequency across mainly driven by a high expected rise per user during the past year which is all examined countries, followed in Turkey (+7%pt) and Switzerland predominantly driven by the industry by the industries Automotive and (+4%pt) which already represent the sector Media and Entertainment Transport and Retail and Consumer highest usage within the examined (33 times per user per year). Automotive each containing one exception, countries. Austria is expected to see and Transport and Retail and Consumer namely Switzerland, where Retail and usage increase by +2%pt, Germany are ranked as the second highest with Consumer is on a par with Hotels and along with Belgium will remain almost a usage frequency of 9 times per user Accommodation, Service and Finance. stable (+1%pt). In the Netherlands per year, followed by Machinery with significantly fewer people plan to 6 times. Hotels and Accommodation, In the past year Share Economy users use Share Economy offers during the Services and Finance reach a usage spent on average €816 on Share next years. There, usage is expected frequency of 5 times per user per year. Economy offers. In comparison to to decrease by –8%pt bringing the the usage of 35 times on average Netherlands to the lowest level regarding this indicates €23 per usage. The usage together with Belgium (37%). industry Finance shows above-average spending (€1,088 per year) while the Fig. 2 Average frequency of Share Economy usage within the different industry other industries (except Media and segments per user Entertainment) ranged between €200 and €400. Media and Entertainment Media and Retail and shows average expenses of less than Entertainment Transportation Consumer Goods €100 per year.

Across all countries, users of Share Economy plan lower expenses for 33.3% 9.5% 8.6% Finance (–26%) and Hotels and Accommodation (–2%) for the upcoming year. However all other industries expect a strong increase in spending of at least 10%. For Machinery users plan Machinery Finance Accommodation Services to raise spending by +5%.

5.6% 5.4% 5.0% 4.9%

10 Share Economy 2017 Share Economy widely accepted and used

Fig. 3 Current and planned average Share Economy spending per user by country

€1,911

€1,124 €1,031 €1,054 €939 €884 €928

€615 €599 €574 €506 €459

+5% +85% +71% –9% +20% –4%

Turkey Switzerland Germany Belgium Austria Netherlands

Current spending per user Planned spending per user Percentage increase/decrease

Within all countries Turkey shows (women 57%). Within the industries the highest average spending on Finance (64%), Machinery (62%) Share Economy offers during the past and Automotive (58%) men are year (€1,031 per user) followed by overrepresented – the same distribution Switzerland with €939. German users applies to Germany and Austria. spent on average €884, Belgians €615, Switzerland and the Netherlands are Austrian €599 and Dutch users €506. very similar. Belgium shows the most For the upcoming year Turkish, Belgian, significant disparity between genders Swiss and German users plan to with a very dominant male usage share increase spending whereas Austrian and across all industries. However, Turkey, Dutch users plan to spend less on Share in contrast to all other countries, shows Economy. a slightly higher share of female users across all industries except for Service, Men show a higher usage and Finance and Machinery. higher spending on Share Economy than women. In general men also spend significantly But who are the users of Share Economy? more on Share Economy than women. Overall, the gender breakdown Although men use Share Economy offers regarding Share Economy utilization for Hotels and Accommodation as well is rather balanced – 51% of the overall as Automotive and Transport much Share Economy users are men. Relative more often, women show on average to women men show a significantly slightly higher spending on these higher usage rate across all industries respective industries. except Retail and Consumer Goods

Share Economy 2017 11 Share Economy widely accepted and used

Fig. 4 Differences in Share Economy spending per gender by industry Share Economy attracts younger adults – every second user is under 40 years. Not quite surprisingly, across all Men Women countries and considered industries Share Economy attracts especially Accommodation younger adults – almost every second 54% 46% user is under 40 years (53%). Across €356 €446 all industries the usage decreases with increasing age. Within the considered Automotive industries Finance shows the highest share of young adults under 40 years 58% 42% (66%) – the number of users older than €226 €326 40 is greater in Services (especially for households) than is the case in the other Finance industries. 64% 36% €1,072 €1,116 Turkish users show the lowest average age with 37.8 years. In Belgium, the Machinery Netherlands, Austria and Germany the 62% 38% average age of Share Economy users €206 €245 is around 41. On average Swiss users are the oldest within the countries Media and Entertainment (43.2 years). Thus, young adult users 54% 46% (<40 years) account for more than 50% €73 €54 of all Share Economy spending across all countries and industries with very few Retail and Consumer Goods exceptions. In Austria and Switzerland 43% 57% young adults spend less on Service offers, thus reaching only a share of €270 €177 <40% in this respective industry. In the Netherlands as well as in Belgium young Services adults show an expenditure share of 55% 45% only 33% and 22% within the Finance €203 €295 industry.

Share of Share Economy users Average spending per user Young adults are the engine for Share Economy’s current triumphal march. But that does not mean that older people are decoupled from this trend as the group of people >60 years attains an average usage rate of 15% across all considered countries. However, with a 9% share of spending on Share Economy, there is room for improvement regarding their profitability. Particularly in view of the gathering pace of demographic change it is important for Share Economy providers not to miss responding to older peoples’ needs to exploit full sales potential in the near future.

12 Share Economy 2017 Share Economy widely accepted and used

Fig. 5 Percentage of overall Share Economy usage and spending of user segment <40 years

Austria 53% 56% Belgium 53% 56% 64% 69% Germany Overall 53% Users younger than 62% 40 years (53% of Share Economy users) Netherlands contribute 64% to 52% overall Share 59% Economy spending Switzerland 45% 68% Turkey 58% 67%

Share of Share Economy users <40 years Share of spending by Share Economy users <40 years

Users of Share Economy offers their expenditure share. For example, possess a higher education level. 62% of Austrian Share Economy users Originally, one of the main philosophies have high school graduation or higher of the Share Economy has been to and this group represents 64% of overall be “socially oriented” and enable spending on Share Economy in Austria. consumption (e.g. vacation at private accommodation cheaper than hotels) for In all other countries the expenditure everybody. However, our figures of today’s share of highly educated people situation tell a slightly different story. exceeds their user share significantly with strongest characteristics in the Regarding education background across Netherlands where 63% of users are all countries and industries the majority educated more highly but represent 85% of Share Economy users possesses a of total spending on Share Economy. higher education level – on average 64% have achieved high school graduation or This means that, especially for Share higher. Automotive and Transport (73%) Economy providers in Germany, along with Hotels and Accommodation Switzerland, the Netherlands and (70%) reach an above-average share of Belgium, it is important to attract more highly educated users. consumers with high school graduation or higher as they show an even higher With respect to the specific countries of willingness to pay for Share Economy Austria and Turkey the share of users offers compared to lower educated users. with a higher education level is equal to

Share Economy 2017 13 Share Economy widely accepted and used

Fig. 6 Percentage of overall Share Economy usage and spending of user segment with higher education

Austria 62% 64% Belgium 64% 55% 71% 75% Germany Overall 59% Users with higher education (64% of 70% Share Economy users) Netherlands contribute 75% to 63% overall Share 85% Economy spending Switzerland 50% 66% Turkey 91% 94%

Share of Share Economy users with higher education Share of spending by Share Economy users with higher education

Users follow not so much the Within the countries Dutch non-users Summarizing, users of Share Economy basic idea of unselfish sharing are most critical, as 50% do not perceive across all countries follow not so much and are more driven by the aim of any advantage. By way of contrast, only the basic idea of unselfish sharing maximizing their own benefit. 21% of Turkish non-users believe that and instead aim to maximize their Across all countries users are convinced they do not profit from Share Economy personal benefit. Besides the personal that they benefit from Share Economy utilization. advantages users also demonstrate offers. Only 8% of the users do not a higher orientation towards perceive any benefit. Current non-users From a user’s perspective Share environmental aspects. 75% believe still have to be convinced – as almost Economy offers various benefits. that Share Economy is better for the every second non-user (42%) does Overarching users especially appreciate environment especially by reduced not see any advantage by using Share the improved value for money (47%). waste of material (80%). Overall 23% Economy offers. This group can be In this context 84% of users agree believe that they profit from Share characterized as very skeptical mainly that sharing is the less expensive Economy providers’ higher orientation driven by the fear of suffering from any alternative to owning. Furthermore, towards environmental protection and personal disadvantage. 84% of users value the higher flexibility sustainability. The linkage between for consumers by Share Economy environment protection and Share utilization. Almost the same percentage Economy utilization is much more (79%) agrees to the benefit of making pronounced in Germany, Austria and specific lifestyles more affordable by Switzerland than in the Netherlands, sharing things instead of owning them. Belgium and Turkey.

14 Share Economy 2017 Share Economy widely accepted and used

Fig. 7 Perceived benefits from Share Economy usage

Better price for the same service 47% 27% More direct and personal interaction 25% 16% Easier and more convenient access and availability of providers 24% 9% Higher attention to environmental protection and sustainability 23% 19% Higher customer value 22% 14% Greater product/service portfolio 21% 9% Being part of a “community” 19% 15%

I don’t see any advantages 8% 42%

User Non-users

Lack of clarity about liability in The guarantee of being an expert expert offering Share Economy services case of problems and damage is a to ensure sufficient insurance (65%). Personal security is an important major obstacle to further market protection has highest impact factor to increase acceptance of Share penetration. on attractiveness of Share Economy on the one hand. On the Regarding disadvantages of Share Economy in addition to pricing other hand higher transparency is an Economy utilization users across all transparency. important criterion as well: 36% of countries commonly criticize the To increase attractiveness, for users Share Economy users agree that higher unclear liability situation in case as well as current non-users, ensuring transparency relating to prices would of problems and damage (44%). that providers have sufficient insurance increase attractiveness. Furthermore, downsides include the protection (36%) is the most important lack of quality standards (30%) and lever. Additionally, reassuring users Especially the Austrian and Swiss security (29%). Countries such as that real professionals are taking users would also appreciate higher Germany, Austria and Switzerland seem care of them (e.g. electrician) would transparency regarding compliance to be particularly critical regarding also have a significant effect on with legal regulations. Furthermore, these topics. Especially Turkish users attractiveness (36%). This is mainly in particular Turkish and Dutch users also show a high sensitivity towards driven by users’ concern that anyone would also be attracted by improved non-transparent prices and costs. could easily become a self-proclaimed data protection.

Share Economy 2017 15 Share Economy widely accepted and used

Personal recommendations Share Economy is here to stay – the increase trust in Share Economy majority of respondents expects offers Share Economy not only to be a Consumers of Share Economy offers short-term trend but an important, seek to maximize personal benefit. sustainable future market. Therefore, they have to distinguish In conclusion the principle of Share “good” from “bad” offers. For better Economy is nothing new as it is the orientation, across all countries, the basic idea of a cooperative society majority trusts in personal referral. model. What distinguishes current 79% of users agree to be willing to test a Share Economy from that is the higher Share Economy offer if a trusted person attention to a cooperative economy, gives a recommendation. In addition, which makes this trend appear more as 66% of users value “technologies” a new version of capitalist growth. And such as Social Media which offer the the new idea of sharing is the future. possibility of adding a face to an offer, thus increasing users’ trust. On average 63% of respondents expect that Share Economy is not only a short- Overall Share Economy companies are term trend. Across all countries there is already positioned in the consumer’s also a consensus that Share Economy is mindset as a serious competitor of closely linked to societal and economic traditional providers (74%). But with changes. In this context 72% support regard to the considered industries Media the idea that these changes will have and Entertainment is the only sector with an impact on the job market and will higher trust towards Share Economy lead to a shift from traditional 40‑hour providers compared to conventional jobs to having multiple sources of providers. In all other industries income becoming the norm in 2030. traditional providers enjoy higher Regarding this, more than every second confidence. Turkey is the only exception respondent (52%) believes that Share in this respect as not only Media and Economy will destroy jobs in traditional Entertainment users but also users in companies. Beside this negative impact the Automotive industry show higher on traditional jobs, 60% of respondents trust towards Share Economy providers. perceive Share Economy as creating a strong community since society benefits from the basic idea of sharing (72%). However 48% of respondents expect that the character of Share Economy will change in the future as the basic idea of sharing will be entirely replaced Share Economy is here to stay – by making profit by 2030. the majority of respondents expects Share Economy to be a sustainable future market.

16 Share Economy 2017 Share Economy 2017 – Country Deep Dive

B Share Economy 2017 – Country Deep Dive

Share Economy 2017 17 Share Economy 2017 – Country Deep Dive

1 Germany

39% have used a Share 40% plan to use a Share Economy offer within the past year Economy offer within the next year

of users are between of users are male 53% 51% 18 and 39 years old

21% have provided a Share 24% plan to provide a Share Economy offer during the last year Economy offer within the next year

€884 is on average spent 29x average usage of on Share Economy offers per user Share Economy offers per user within one year within one year

Most used Share Economy offers by Germans

Media and Retail and Hotels and Entertainment Consumer Goods Accommodation (23%) (20%) (17%)

Advantages (users perceive) of Share Economy

50% agree that Share 25% agree that 25% agree that Share Economy offers a better price- Share Economy providers pay Economy offers a more personal performance-ratio more attention to environmental direct interaction between protection and sustainability consumers and providers

Disadvantages (users perceive) of Share Economy

47% raise concerns 33% perceive the 29% have concerns regarding not clearly defined lack of quality standards as key regarding security liabilities in case of issues and disadvantage damages

18 Share Economy 2017 Share Economy 2017 – Country Deep Dive

Germany has the second largest Especially Germans plan to intensify Furthermore, the results indicate Share Economy market of the six usage of Service offers (+5%pt) along that females use sharing services countries subject to the survey with Hotels and Accommodation in Machinery as well as Retail and with an overall market size of (+4%pt), Automotive (+4%pt) and Consumer Goods more often, but men €22.9bn. Machinery (+4%pt). have a higher usage in all remaining Germany belongs to the leading industries, especially Finance, economies in terms of GDP, which On average German users utilize Automotive and Transportation and is why the country’s Share Economy Share Economy services 29.2 times Services. After all, demand for 86% of potential requires a closer look. Based per year mainly driven by Media and Finance services is attributable to men. on the answers of the 2,000 respondents Entertainment (29.1 times per user per Therefore, although male users have a in Germany, PwC estimates the Share year) and Retail and Consumer Goods higher affinity to make more frequent Economy size in Germany to be €22.9bn. (8 times per user per year). use of Share Economy offers in industries The sector with the highest turnover such as Hotels and Accommodation, in Germany is Finance with €7.7bn During the last year every German user Automotive and Transportation and turnover, followed by Hotels and spent on average €884 on Share Economy Services, their willingness to pay is lower Accommodation (€5bn) and Automotive offers. In terms of industry turnover, than that of females. and Transportation (€3.5bn). The sector users spend most on Finance services Retail and Consumer Goods is worth with an average spending of €1,229 per The German Share Economy market €2.6bn while Services generate €2.2bn user, whereas the mean spending in the also reveals that user rate as well as and Media and Entertainment €1.0bn; Media and Entertainment sector is the usage rate decreases with increasing Machinery is estimated at €0.8bn. lowest (€62). age. 53% of current users are between 18–40 years old, they account for a The overall Share Economy market is Overall, 2% more Germans plan to make greater percentage of sharing services expected to increase by 5.3% next year use of Share Economy services in the (68%) and contribute more than half to a market size of €24.1bn. This is based course of next year. Industries such as of total spending (62%). Industry-wise, on the planned spending of users. Other Machinery and Services can expect a this age group generates more than 70% sectors are expected to increase with higher relative increase while Media and of turnover in Retail and Consumer the highest growth rates in Machinery Entertainment might face a decrease Goods, Services and Hotels and (+43%), Media and Entertainment in users (–8%). In addition, potential Accommodation and in addition account (+26%) and Services (+25%). spending is expected to increase by 5% for the majority of the usages of Finance in comparison to this year’s individual (85%) and Machinery (83%). On the 39% of Germans use Share spending. This trend is mostly driven by other hand, almost half of the spending Economy services. While Media an increase in the planned spending in in Automotive and Transportation can and Entertainment has the highest Media and Entertainment (+35%). be attributed to users above 50 years. user rate, average spending of users is highest for finance Slightly more men than women People with a higher educational services. use Share Economy services. level tend to use Share Economy It was revealed that 39% of Germans Usage and spending decrease more often and spend more have used a Share Economy service significantly with increasing age. money. Share Economy spending within the past year which represents Taking a closer look into user increases with disposable income. the second lowest adoption rate of all six characteristics, it can be seen that there The majority of Share Economy users examined countries. Only the acceptance is almost an even split of female and male have a higher education level (above of sharing services of Belgians is lower. users in Germany. Despite the slightly A-level) and they contribute 70% of total Within the considered industries Media higher amount of male users (51%), women market spending and also generate more and Entertainment shows the highest spend a bit more on Share Economy than 70% of revenues in the Services, usage rate (23%), followed by Retail and services while men have a higher usage Automotive and Transportation and Consumer Goods (20%) and Hotels and frequency. Women also account more Transportation as well as Hotels and Accommodation (17%). for Hotels and Accommodation services Accommodation sector. Although people (60%), Retail and Consumer Goods as with a lower educational level account Regarding next year overall only slightly well as Services (62% each); however, for only 39% of all finance spending, more respondents plan to participate in more of the turnover of Machinery they purchased more than half of the sharing economy as consumers (+1%pt) (65%), Media and Entertainment number of finance services provided. but with regard to the specific industries (61%) and Finance (57%) services and some show a significant increase. products is ascribed to male users.

Share Economy 2017 19 Share Economy 2017 – Country Deep Dive

Furthermore, it has been identified The majority of German respondents More Germans plan to offer a service that the income level is a significant also criticize Share Economy for to others, especially in the Hotels and indicator of overall spending, showing a enabling everyone to easily become Accommodation sector (+25%). relation between user rate and income a professional provider and be a level. While only 16% of German users competitive threat for traditional Every second current user perceives an had a monthly disposable household organizations. improved price-performance ratio for income above €4k, they accounted for the same service as the main benefit of 38% of overall Share Economy turnover To improve the attractiveness of Share Economy services. Additionally, in Germany. Their contribution to the Share Economy, users would like one fourth of users emphasizes the revenues of the following sectors was to be reassured that providers have increased attention of Share Economy particularly high: Retail and Consumer sufficient insurance protection (41% providers to environmental protection Goods (49%), Services (46%) and of users, 36% of all respondents) and and sustainability as well as the Hotels and Accommodation (43%). that professionals take care of them improved personal interaction between Although 37% of the sample indicated (38% of users, 32% of all respondents). users and providers and the feeling of a disposable household income of less The transparency of prices is another being part of a community. On the other than €2k, their contribution to the important aspect for 28% of Germans hand, 46% of current non-users do overall Share Economy spending made (35% of users). not see any advantage Share Economy up only 18%. providers could offer. 83% of Germans perceive that Share While the decision whether to use a Economy is based on trust between Providers on the other hand perceive the specific Share Economy service does not provider and user, however, 63% have monetary benefit of an additional source seem to be influenced by the city size, lower trust in people nowadays than in of income as the strongest motivation. overall spending seems to increase with the past. Even current users would trust This is backed by 29% of providers. increasing size. We observed that 28% a traditional provider more than a Share In addition, having the possibility of total turnover is generated in cities Economy provider, whereas Media and to pass on one’s spare time or spare with more than 500.000 inhabitants. Entertainment services are the only items to others is perceived as another Users in these cities contribute most exception. advantage. Although the majority of to industry spending in Retail and Germans agrees that Share Economy Consumer Goods and Services (42% of Nevertheless, Germans still believe reduces the waste of material and that each turnover). In smaller cities with that Share Economy will not simply be it is cheaper to share items instead of less than 50.000 inhabitants, users a short-term phenomenon but expect owning them, more than 30% of non- spend more on Machinery and Media the future job market in 2030 to change providers cannot imagine any benefit of and Entertainment. from having one main occupation to Share Economy for providers. having multiple sources of income which Users consider the personal holds additional potential for the future benefit of Share Economy with a of the German Share Economy market. better price performance ratio to be more important than its Every fifth German has already benefits for society. provided a Share Economy service. German users as well as current Within the last year, 21% of Germans non-users criticize most the absence have at least offered one Share Economy of liability in case of problems and service and on average provided damages (45%), quality standards and 40 services each. Despite the marginal security, providers worry most about increase in users, the number of the uncertainty of income (23% of Share Economy providers is expected providers) and the not clearly defined to increase in all industries by 13%. legal situation in terms of income tax and related topics (22% of providers).

20 Share Economy 2017 Share Economy 2017 – Country Deep Dive

2 Austria

47% have used a Share 49% plan to use a Share Economy offer within the past year Economy offer within the next year

of users are between of users are male 53% 52% 18 and 39 years old

23% have provided a Share 28% plan to provide a Share Economy offer during the last year Economy offer within the next year

€574 is on average spent 31x average usage of on Share Economy offers per user Share Economy offers per user within one year within one year

Most used Share Economy offers by Austrians

Media and Hotels and Automotive and Entertainment Accommodation Transportation (28%) (20%) (20%)

Advantages (users perceive) of Share Economy

54% agree that Share 31% agree that 30% agree that Share Economy offers a better price- Share Economy offers pay more Economy offers a more personal performance-ratio attention to environmental direct interaction between protection and sustainability consumers and providers

Disadvantages (users perceive) of Share Economy

54% raise concerns 33% have concerns 30% perceive the regarding not clearly defined regarding security lack of quality standards as key liabilities in case of issues and disadvantage damages

Share Economy 2017 21 Share Economy 2017 – Country Deep Dive

Austria ranks last in terms of For the next year +2%pt of Austrians 52% of Share Economy users overall market size together with plan to use Share Economy offers. are male and are more willing Belgium and is not expected to With regard to the specific industries to spend more on services used. grow in the next year. especially Service will show a Spending and usage increases The estimated market size of the Share significant increase of usage rate with decreasing age. Economy in Austria is €2.0bn. As in most (+6%pt). The second strongest increase In terms of identified user characteristics, other countries, Finance is revenue- can be expected for Automotive and men represent 52% of all Austrian users wise the largest market in Austria with Transport (+4%pt), followed by Hotels and have a higher dominance in all €0.9bn. This is followed by Hotels and and Accommodation (+3%pt.) and examined industries except for Retail Accommodation with a market size of Finance (+2%pt). Retail and Consumer and Consumer Goods which is not only €0.4bn and Machinery and Retail and Goods will remain static at the same used to a greater extent by females, but Consumer Goods, which both have a level, Media and Entertainment usage also generates slightly more turnover market share of €0.2bn. The remaining will face a decline of –3%pt. by women. However, overall and in sectors each have an approximate all remaining industries, men spend market size of €0.1bn. On average, each Austrian respondent more on sharing services, contributing uses Share Economy services 14.9 times a share of 60%. One further trend, In contrast to most countries in the while spending €284. Identified examined also in other countries: More survey, the overall Share Economy users utilize sharing services on than half of the users, namely 53%, are market in Austria is expected to 31.5 occasions, spending about €600 between 18 and 39 years old. The same decrease by 6.1% in the next year. each. Media and Entertainment services applies for Share Economy spending This is primarily driven by a decrease are used most frequently, followed of which 56% were contributed by the of planned spending on Finance services by Automotive and Transportation same target group. In terms of age, the of 41%. The Services sector is expected offers, whereas Austrians rarely use user’s willingness to pay decreases with to increase by 70% and the Automotive Finance services. In terms of industry increasing age. and Transportation sector by 49%. In spending, the mean contribution of each addition, the Media and Entertainment respondent is highest in Finance (€112) Furthermore, the majority of Austrian and the Hotels and Accommodation and Hotels and Accommodation (€64), users (62%) has a higher education sector are anticipated to increase by a while the mostly used sector, Media above A-level and only a minority of double-digit rate. The Machinery sector and Entertainment only generates an 5% has an income below €1k. Share is expected to decrease by 10%, whereas average of €12 per Austrian. Economy services appeal to a greater Retail and Consumer Goods is expected extent to Austrians with a higher to stay constant. For next year, 3% more Austrians income. 61% of total spending was plan to use sharing services, with the generated by users with an income Almost every second Austrian highest relative increase of users in above €3k, in Finance this respective uses sharing services and the user Services (+43%) and Automotive and category contributes 75%. rate is expected to increase by Transportation (+21%). However, 3%. Highest usage identified for fewer people are planning to use Media Although user rates are similar across Media and Entertainment services and Entertainment services (–11%). city size, 54% of total Share Economy though lowest average spending Although the user rate is expected to turnover was generated by users from per user. increase, Austrians plan to spend less cities with more than 100k inhabitants. In Austria, 47% of respondents have on Share Economy next year (–4%). However, neither spending nor usage used at least one Share Economy service Machinery services have to expect a seems to be influenced by city size. within the past year. The results of the decrease of 9% of Austrians, or 11% of examined 500 respondents show that current users. Austrians prefer sharing services mostly in the sector Media and Entertainment, with a usage rate of 28%, followed by Hotels and Accommodation, Automotive and Retail and Consumer Goods (20% in each case).

22 Share Economy 2017 Share Economy 2017 – Country Deep Dive

To increase the attractiveness of Share Economy services and providers, Austrians want to be reassured that providers have sufficient insurance protection.

The main motivation for Some also wish for more transparency In Austria, almost every fourth Austrians to use Share Economy regarding compliance with legal person provides a sharing service. services is the monetary benefit. provisions. A majority of 82% of Austrians Currently, 23% of Austrians have The trust in traditional providers furthermore agrees that users benefit provided a Share Economy service is stronger than the trust in Share most from Share Economy. Additionally, within the last year, while 28% plan to Economy providers. the reduced waste of material and the offer one next year. So far, the highest From a user perspective, the superior thought of sharing is also perceived as a provider presence was identified in value for money for the same service positive impact on society. Retail and Consumer Goods (15% of (54%) as well as the attention to Austrians) as well as Services (9% of environmental protection and 86% agree that Share Economy is based Austrians) with a service provided on sustainability (31%) and the more on the trust between provider and user average on 30 occasions; this is expected personal interaction between users and it is more cost-efficient to share to increase. and providers (30%) are the main instead of owning items (81%). The advantages Share Economy providers survey revealed that 70% of Austrians From a provider’s perspective, the offer. However, 34% of current do not trust brands nowadays more than monetary aspect of an additional non-users still do not perceive any in the past and perceive Share Economy income (39%) is perceived as the main advantages. By way of contrast, users providers as a competitive threat for benefit of providing Share Economy mainly criticize the uncertainty traditional organizations. In all sectors services. Having the possibility to pass regarding clearly defined liabilities in except Media and Entertainment, the spare items and time on to others is the event of issues or damages (54%) traditional provider is the more trusted regarded as a further advantage for and have concerns regarding the lack of partner while non-users tend to trust 16% of providers while one in every five security and quality standards. traditional providers to a greater extent currently non-providing Austrians does across all industries. not see any advantage for providing a To increase the attractiveness of Share sharing service. Nevertheless, providers Economy services and providers, With respect to the future, almost also have concerns regarding their role Austrians want to be reassured that two third of Austrians expect the job in the Share Economy market. One third providers have sufficient insurance situation in 2030 to be changed from the of providers emphasize the uncertain protection (e.g. in case of damages) traditional 40-hour job to having several legal situation, for example in terms of (54% of users, 47% of all respondents) sources of income and therefore Share income tax, while further respondents and that professionals take care of them Economy to be a long-term topic. perceive the uncertain source of income (46% of users, 41% of all respondents). and lack of privacy as pain points worth mentioning.

Share Economy 2017 23 Share Economy 2017 – Country Deep Dive

3 Switzerland

48% have used a Share 52% plan to use a Share Economy offer within the past year Economy offer within the next year

of users are between of users are male 45% 49% 18 and 39 years old

19% have provided a Share 27% plan to provide a Share Economy offer during the last year Economy offer within the next year

€939 is on average spent 31x average usage of on Share Economy offers per user Share Economy offers per user within one year within one year

Most used Share Economy offers by Swiss

Automotive and Media and Hotels and Transportation Entertainment Accommodation (26%) (25%) (23%)

Advantages (users perceive) of Share Economy

52% agree that Share 27% agree that Share 23% agree that Economy offers a better price- Economy providers pay more Share Economy providers offer performance-ratio attention to environmental more convenient access and protection and sustainability availability

Disadvantages (users perceive) of Share Economy

49% raise concerns 29% have concerns 29% perceive the regarding not clearly defined regarding security lack of quality standards as key liabilities in case of issues and disadvantage damages

24 Share Economy 2017 Share Economy 2017 – Country Deep Dive

Switzerland exhibits the third of the Swiss. Machinery as well as Slightly more women adopted the largest Share Economy market size Finance show the lowest acceptance use of Share Economy services but of all countries in scope with an as they achieve a user rate of 6% men tend to spend more, younger overall market size of €3.3bn and each. Regarding next year even more and better educated people tend to an expected growth rate of 20%. Swiss plan to take advantage of Share spend more. According to the data, with a sample size Economy offers, which will raise user With a user share of 51% slightly more of 500 the market size of Share Economy share by +4%pt across all industries. women utilize Share Economy in services in Switzerland is estimated at The strongest increase in user rate can Switzerland which is primarily driven €3.3bn. Based on these results, it ranks be expected for Retail and Consumer by the industry Retail and Consumer third after Germany and Turkey. The Goods (+8%pt.) followed by Hotels Goods (60%). The Services sector leading sectors Finance and Hotels and and Accommodation and Services with shows a balanced gender breakdown, Accommodation account for more than +6%pt. Machinery will raise user share however the remaining industries show 62% of the overall market and have by +4%pt., Finance and Automotive by higher male user rates. Especially in individual market sizes of €1.1bn and 3%pt. Media and Entertainment is the the industries Finance and Machinery €0.9bn. Automotive and Transportation only industry that is planned to be used user share of Swiss men exceeds 60%. and Retail and Consumer Goods make by fewer Swiss consumers (–3%pt.) in Despite the balanced gender distribution up a medium market size with €0.5bn the upcoming year. among users, men are on top regarding and €0.3bn, while Media, Services and expenditures across all industries. 65% Machinery have each less than €0.2bn. An average Swiss user utilized Share of overall spending on Share Economy is Economy services 31 times within the generated by men. In specific industries The Swiss Share Economy market is last year. Media and Entertainment such as Retail and Consumer Goods, expected to increase by 20% to €3.9bn offers show the highest usage frequency Finance, Media and Entertainment, and in the next year. The leading Finance within the industries (41 times per user Machinery the expenditure share of sector is expected to grow by 16% while per year). Automotive, with the second male users exceeds 70%. the Hotels and Accommodation sector highest frequency, is used 10 times per is likely to decrease by 1%; Automotive user per year. The remaining industries 45% of Swiss users are young adults and Transportation is expected to show a frequency ranged between 2 and under 40 years. With regard to different decline by 15%. Apart from Machinery, 4 times per user per year. On average, sectors, young adults are most strongly all remaining sectors are expected to each user spent €939 on Share Economy represented at Finance (71%) ahead increase and the highest growth might during the past year, mainly driven by of Media and Entertainment (61%). occur in the Services sector, which Finance (€2,415) and Hotels (€555). Compared to the other countries is expected to increase to an overall Automotive, Retail and Consumer examined, in Switzerland older users revenue of €0.7bn. Goods and Machinery and Service are represented to an above-average attained spending ranging between extent. Across the industries Hotels and 48% of Swiss respondents use €150 and €350 per user per year. For Accommodation, Automotive, Retail and Share Economy services and users Media and Entertainment offers users Consumer Goods and Services almost plan to increase their spending spent on average only €91. every fourth person is older than 60. on Finance and Media and Entertainment next year. For next year Swiss users plan to With regard to the education Switzerland shows a strong utilization increase expenditures for Share background in Switzerland, there is a of Share Economy services. During the Economy by +20%; this is exclusively balanced relation between users with past year almost every second Swiss driven by Services (+219%) and A-level education or higher and users respondent (48%) used relevant offers. Media and Entertainment (+24%). with a lower education level. For Retail Regarding the specific industries Regarding industries Finance, Hotels and Consumer Goods, Finance, Media Automotive and Transportation (26%), and Accommodation, Automotive and Entertainment and Machinery the Media and Entertainment (25%) and and Transportation and Retail and expenditure share of high-education Hotels and Accommodation (23%) are Consumer Goods Swiss users plan users exceeds 70%. In contrast to that the most attractive gaining the highest to reduce expenditures by almost a Services shows not only a higher usage user rates. Retail and Consumer Goods quarter – for Machinery a reduction of rate (70%) but also a higher expenditure offers are used by 13%, Services by 11% –64% for the upcoming year is planned. share (54%) for users with a lower education level.

Share Economy 2017 25 Share Economy 2017 – Country Deep Dive

Swiss consumers highly value Reassuring users that providers have from the traditional 40-hour job to higher sustainability and better sufficient insurance protection would employees relying on several sources environmental impact of Share increase attractiveness of Share Economy of income becoming the norm in 2030. Economy offers. for almost every second (44%) Swiss. Regarding this every second Swiss In Switzerland people are convinced As 57% of Swiss feel concerned about the (49%) believes that Share Economy will that they benefit from Share Economy – fact that everyone could easily become destroy jobs in traditional companies. only one in five does not perceive a self-proclaimed expert it could also any advantage related to relevant have a lasting effect on attractiveness to Despite the negative impact on offers. From a user’s perspective Share guarantee users that real professionals traditional jobs 71% of current users Economy provides numerous benefits. are taking care of them (36%). The believe that Share Economy creates a The Swiss users as well as current attractiveness of Share Economy offers strong community as society benefits non-users especially appreciate the would increase by a higher level of from the basic idea of sharing (78%). improved value for money (42% price- transparency regarding prices (33%) as However 43% of Swiss expect that the performance ratio). In that context 88% well as regarding compliance with legal character of Share Economy will change of users are convinced that sharing is requirements (30%). in the future as the basic idea of sharing the less expensive alternative to owning. will be totally replaced by making profit Therefore, users trust that using Share Personal referral is a key success by the year 2030. Economy makes specific lifestyles more factor to promote trust. affordable (76%). Furthermore users Personal referral is an important factor In Switzerland, currently one feel they benefit from Share Economy for Swiss users building trust in Share in every five persons provides a utilization because relevant offers Economy offers. Therefore, 80% of users sharing service. provide them with higher flexibility agree to be willing to test an offer if a 19% of the Swiss have provided a Share (84%). Besides the personal advantage trusted person gives a recommendation. Economy service within the last year. the Swiss show a strong orientation In this context it makes technologies For next year the provider rate will show towards environmental protection and such as social media important as 62% a strong increase of +8%pt. sustainability. 70% of Swiss value the of users claim it creates trust to see the reduced waste of material – therefore people behind the offers. To date, the highest provider presence 66% believe that using Share Economy is identified in the industry Hotels offers is better for the environment. Overall Share Economy companies and Accommodation (11% of Swiss), 27% of Swiss appreciate that Share are already positioned in a majority’s followed by Retail and Consumer Goods Economy providers pay more attention mindset as serious competitors to (10%) and Automotive and Transport to environment protection and traditional providers (70%). But of all along with Services (both 9%). Across all sustainability which is perceived as the industries Media and Entertainment industries a rising number of providers second highest benefit. is the only one with higher user trust can be expected for the next year. towards Share Economy providers. In all Unclear liability is seen as a other considered industries traditional From a provider’s perspective, the major disadvantage which is why providers enjoy higher confidence. monetary aspect of an additional income sufficient insurance protection Non-users show limited trust to Share (24%) is perceived as the main benefit of could be a major enabler for Share Economy providers across all industries. providing Share Economy services. But Economy usage. also having the possibility to pass spare With respect to disadvantages of Share 71% of the Swiss are convinced items and time on to others is regarded as Economy every second Swiss criticizes of the long-term success of Share a further advantage for 18% of providers. the unclear liability situation in case Economy. Only one in every seven currently of issues and damage (50%) followed The Swiss, users as well as current non-providing Swiss does not see any by a lack of quality (28%) and security non-users, mainly expect that Share advantage for providing a sharing service. (26%). In addition, 22% also consider Economy is not merely a short-term Nevertheless, providers as well as users that worse data protection is a downside trend but will still be present in the have concerns regarding their role in the aspect of Share Economy. 16% of Swiss distant future (71%). In Switzerland Share Economy market. 24% of providers miss transparency regarding prices or there is also a broad consensus that criticize the uncertain legal situation, for rather costs. Share Economy is closely linked to example in terms of income tax. Almost societal and economic changes. In this one in every five persons perceives the context 76% of users and 67% of current uncertain source of income and lack of non-users support the idea that a change social benefits as disadvantages with on the job market will lead to the shift regard to providing offers.

26 Share Economy 2017 Share Economy 2017 – Country Deep Dive

4 The Netherlands

44% have used a Share 37% plan to use a Share Economy offer within the past year Economy offer within the next year

of users are between of users are male 52% 51% 18 and 39 years old

16% have provided a Share 19% plan to provide a Share Economy offer during the last year Economy offer within the next year

€506 is on average spent 53x average usage of on Share Economy offers per user Share Economy offers per user within one year within one year

Most used Share Economy offers by Dutch

Media and Hotels and Automotive and Entertainment Accommodation Transportation (35%) (18%) (10%)

Advantages (users perceive) of Share Economy

42% agree that Share 30% agree that 27% agree that Share Economy offers a better price- Share Economy providers offer a Economy providers offer more performance-ratio higher consumer benefit direct interaction between user and provider

Disadvantages (users perceive) of Share Economy

39% raise concerns 33% perceive the 26% have concerns regarding not clearly defined lack of quality standards as key regarding security liabilities in case of issues and disadvantage damages

Share Economy 2017 27 Share Economy 2017 – Country Deep Dive

The Netherlands has an overall offers from Automotive and 9% from Young users tend to engage Share Economy market size of Machinery. While Automotive is planned more with Share Economy and €3.0bn and is expected to decline to be used by more clients in the next differences between usage of by 9.4%. year (+3%pt) the user rate of Machinery women and men depend on According to our data with a sample size will remain almost stable (+1%pt). different industries. of 500, we estimated the market size of With +4%pt Service shows the highest There are no significant differences in Share Economy services in Netherlands increase within the considered industries gender breakdown observable – 51% at €3.0bn. The leading sectors Finance (current user share 9%). During the past of Share Economy offer usage can and Hotels and Accommodation account year at least 7% of the Dutch used offers be assigned to men. Regarding the for more than 61% of the overall from Retail and Consumer Goods these industries Retail and Consumer Goods market and have individual market are planned to be used by more clients and also Services are balanced as well. sizes of €1.1bn and €0.8bn; Retail next year (+2%pt). Finance shows a user Whereas Automotive, Finance and and Consumer Goods and Media and share of 7% as well and is expected to Machinery show strong differences Entertainment account for €0.3bn. remain almost stable (+1%pt). regarding usage intensity between Dutch men and women. Automotive The Dutch Share Economy market is On average the Dutch utilize Share offers achieve a male market share expected to decline to €2.8bn next Economy offers 53 times per user of 63%, Finance 67% the figure year. This is driven by the fact that per year; this is mainly driven by the for Machinery is 74%. Hotels and respondents plan to spend significantly Media and Entertainment industry Accommodation (55%) as well as Media less on Finance and Retail and Consumer (60times). Within the remaining and Entertainment (53%) show a Goods while the remaining markets are industries Retail and Consumer shows slightly higher share of men. expected to develop positively. Growth with 6 times the second highest usage rates of above 30% are expected for the per consumer followed by Automotive In the Netherlands Share Economy offers Automotive and Transportation and the (5.6times), Machinery (5.2times), attract younger adults. On average 52% Machinery sector. Service (3.2 times) and Hotels and of the users are under 40 years. With Accommodation (2.8times). With regard to the industries younger adults 44% of the Dutch use Share 1.7 times Finance has the lowest are most strongly represented at Media Economy, and planned usage as utilization per consumer. During the past and Entertainment (65%) and Finance well as spending behavior is very year Dutch users spent €506 per person (64%). Overall the usage decreases volatile across most sectors. on Share Economy mainly driven by high with increasing age. There are different In the Netherlands Share Economy is spending on Finance offers (€1,082 per patterns with regard to the individual already relatively widespread – almost user/year). Hotels and Accommodation industries. For example, in the industries every second person has utilized Share is ranked the second highest with €335 Automotive (14%) and also Retail and Economy offers within the past year along with Retail and Consumer Goods Consumer Goods (15%), people at (44%). But, in contrast to the other with €326. In the industries Automotive, the age of 60+ demonstrate a higher examined countries, the planned usage Machinery and Services Dutch users intensity of usage than the age groups for the upcoming year shows a decrease spend between €125 and €175 on Share 40–49 and 50–59 years. of –8%pt driven by the Media and Economy offers; Media expenses are €56 Entertainment industry. Despite strong per user/year. Users with higher education and losses in the amount of users (–11%pt) high disposable household income Media and Entertainment remains, with For the upcoming year Dutch users plan generate the majority of all Share a planned user share of 24%, the most to spend –9% less on Share Economy Economy turnover. preferred Share Economy industry. The driven by Finance (–62%), Retail and 63% of the users in the Netherlands Hotels and Accommodation industry Consumer Goods (–38%), Services possess a higher education. For Share shows the second highest user share (–21%) and Hotels and Accommodation Economy this group of people plays (18%), and plans to experience an (–3%). In Contrast Automotive (+17%), an important role as 85% of overall increase of +3%pt for the upcoming Machinery (+24%) and Media and spending can be assigned to these users year. Currently 10% of the Dutch use Entertainment (+52%) can expect an with an A-level or higher. Concerning the increase in spending. specific industries Automotive (87%),

28 Share Economy 2017 Share Economy 2017 – Country Deep Dive

Retail and Consumer Goods (93%) and However, from a user’s perspective 62% of the Dutch believe that Share Finance (96%) show an above-average Share Economy also entails Economy will destroy jobs in traditional share of high-education users. Users disadvantages. For 39% the most companies. 76% of the current users and with a lower education level (below significant downside is the lack of clarity 64% of non-users assume that a changed A-level) show the strongest preference about liability in case of problems and job market will lead to the shift from towards Media and Entertainment and damage. Non-users also agree that this traditional 40-hour jobs to employees reach the highest share for this group is the case (35%). Furthermore, the lack relying on several sources of income. (36%). of quality standards (33% of users/24% of non-users) and the lack of security 72% of the Dutch think that society 38% of Dutch users have an income (26% of users/13% of non-users) are benefits from the basic idea of sharing. of more than €3.000 per month and also perceived as disadvantages. With regard to this 56% believe that represent 67% of spending on Share Share Economy creates a strong Economy. This is primarily driven by a In the Netherlands Share Economy could community. Nonetheless, this view is high preference for Finance offers, as increase attractiveness by more price expected to change in future: Almost 91% of spending on this industry can transparency (35% of users/23% of non- every second Dutch person (46%) be assigned to this demographic group. users) on the one hand. On the other expects that the basic idea of Share In all remaining industries – except hand reassuring users that professionals Economy will be entirely replaced by Machinery – high income users just take care of them would also have a making profit by the year 2030. achieve a below-average expenditure lasting effect on attractiveness as 75% share with the lowest significance for of the users are concerned about the fact In the Netherlands, currently Retail and Consumer Goods (28%). that anyone could easily become a self- one in every six persons provides Across all industries medium/high proclaimed expert. Share Economy services. income levels spend most on Share 16% of the Dutch have provided a Share Economy. Personal referral is a key success Economy service within the last year. factor to promote trust. For next year the provider rate will Personal benefits and higher Personal referral is very important for increase by +3%pt. utility is a key success factor Dutch users – 71% would be willing to for sharing economy in the test an offer if a trusted person makes a So far, the highest provider share is Netherlands. recommendation. 67% of the users also identified in the industry Media and From a user’s perspective Share agree that technologies, such as social Entertainment (9% of the Dutch), Economy offers various benefits. 79% media, allow the people behind an offer followed by Hotels and Accommodation of the Dutch users agree that sharing is to be seen; this also leads to higher and Services along with Services (both the less expensive alternative to owning. confidence. 8%). Accordingly the users especially appreciate the improved value for Overall providers of Share Economy From a provider perspective, the most money (42% same service lower price). offers are perceived as a competitive important benefit mentioned is the 30% value the higher consumer benefit threat for traditional providers (81%). monetary aspect of an additional income compared to traditional offers. 24% Despite this perception, current (20%) along with more flexibility e.g. of the current non-users agree to the users and non-users would still trust regarding flexible time management improved value for money but every traditional providers more than Share (20%). In contrast, one in every second current non-user (50%) does Economy providers with one exception three currently non-providing Dutch not see any advantage regarding Share Media and Entertainment industry – person does not see any advantage Economy offers. 67% of users have more trust in Share for providing a sharing service. Economy providers. Current non- Nevertheless, providers, as well as For the Dutch the most essential users have very limited trust in Share users, have several concerns regarding success factor of Share Economy is the Economy providers across all industries. the Share Economy market. 27% of maximization of personal utility. 73% providers perceives the uncertain source agree that Share Economy increases The majority of the Dutch are of income as the main disadvantage. consumer flexibility. 71% are convinced convinced of the long-term success Almost one in every five persons that specific lifestyles become more of Share Economy. criticizes the uncertain legal situation, affordable by sharing things instead of The Dutch are convinced that Share for example in terms of income tax. owning them. Dutch users also emphasize Economy will still be present in the more convenient access and availability distant future. 65% of the users and of providers (27%) and the more personal 54% of current non-users perceive Share interaction with them (27%). Economy not only as a short-term trend.

Share Economy 2017 29 Share Economy 2017 – Country Deep Dive

5 Belgium

36% have used a Share 37% plan to use a Share Economy offer within the past year Economy offer within the next year

of users are between of users are male 56% 56% 18 and 39 years old

15% have provided a Share 19% plan to provide a Share Economy offer during the last year Economy offer within the next year

€615 is on average spent 20x is the average usage on Share Economy offers per user of Share Economy offers per user within one year within one year

Most used Share Economy offers by Belgians

Media and Hotels and Automotive and Entertainment Accommodation Transportation (22%) (16%) (13%)

Advantages (users perceive) of Share Economy

43% agree that Share 29% agree that 29% agree that Economy offers a better price- Share Economy providers offer Share Economy offers a more performance-ratio a more convenient access and direct and personal interaction availability with providers

Disadvantages (users perceive) of Share Economy

44% raise concerns 27% perceive the 26% have concerns regarding not clearly defined lack of quality standards as key regarding security liabilities in case of issues and disadvantage damages

30 Share Economy 2017 Share Economy 2017 – Country Deep Dive

Belgium ranks last in terms of For next year Belgians plan to intensify In Belgium, as well as in the other overall market size of €2.0bn usage across all industries except for examined countries, Share Economy together with Austria but is Media and Entertainment which is offers attract young adults. 56% of expected to increase by 71.5%. planned to decrease at –4%pt. Service users are under 40 years and in all The estimated market size of the Share expects to see the strongest increase considered industries usage decreases Economy in Belgium is €2.0bn. The (+8%pt). Hotels and Accommodation with increasing age. Nevertheless Service Share Economy sector is first will intensify usage and become the the intensity of young adults’ usage in Belgium with an overall turnover of second highest (+6%pt.) and will varies across the industries. Above €0.5bn. Hotels and Accommodation as therefore take the lead within the all Retail and Consumer Goods as well as Automotive and Transportation industries regarding attractiveness. well as Machinery reach the strongest sectors rank second and third with a utilization by young adults exceeding a market size of €0.4bn. The Machinery In the past year, Share Economy share of 75%. sector is worth €0.3bn. Media and offers were used on average 20 times Entertainment makes up €94m and per user, mainly driven by Media Belgians at the age of 40 and older Retail and Consumer Goods only €21m. and Entertainment (25 times). show the strongest orientation towards The remaining industries show a Service offers, reaching a share of 49% Based on the planned spending significantly lower usage frequency of representing the highest for this age of respondents, the Belgian Share 3 times or less per user per year. category across all industries. 69% of Economy market is expected to increase spending on Share Economy in Belgium by 71.5%. All sectors are expected to On average, Belgian users spend can be assigned to young adults under grow by at least a double-digit rate and €615 per year on Share Economy. 40 years. 71% of overall spending on Machinery, Services and Hotels and In this regard the industries Service Share Economy is represented by people Accommodation will grow by more and Machinery show above-average with a higher education background. than 40%. The Retail and Consumer spending, whereas Retail and Consumer Overall the majority of users possess an Goods sector is anticipated to increase Goods as well as Media expenses are A-level or higher (55%). to €0.3bn. less than €50 per year. Hotels and Accommodation, Automotive and Compared with this general trend, the Belgians show the lowest adoption Finance are ranged between 250 and industries Finance and Service show rate as only 36% are current users €450 per year. a slightly higher share of spending of Share Economy and the user represented by users with a lower rate is expected to be almost stable For the upcoming year Belgians plan education level. for the upcoming year. lower expenses for Machinery (–2%.), In the past year 36% of Belgians have Finance (–19%) and Service (–20%). In Belgium almost every third Share made use of Share Economy products Economy user has a high income of more or services which represents the lowest Belgian men show a slightly higher than €3,000 per month. In the industries adoption rate of all examined countries. usage of Share Economy services Service and Media and Entertainment However, for the upcoming year 37% than women, young adults with a high income Belgians are most strongly of the Belgians plan to utilize Share high education level account for represented regarding Share Economy Economy (+1%pt) indicating significant most spending. usage. However, only 18% can be improvement and potential for Share 54% of the Belgian Share Economy assigned to high income users. With an Economy offers in Belgium. usage can currently be assigned to men. expenditure share of 80%, users with Relative to women they show a higher an income of between 1,000 and €3,000 Considering all industries the Belgian preference towards Finance offers (74%) per month are most important for Share usage rates vary, with Media and followed by Automotive (69%), Service Economy providers. Entertainment offers being the most (63%) and Hotels and Accommodation attractive. The utilization is by far the offers (59%). There are no gender highest (22%), followed by Hotels and related differences observed regarding Accommodation (16%), Automotive usage within the industries Media and (13%) and Services (8%). The remaining Entertainment, Retail and Consumer industries Retail and Consumer Goods, Goods and Machinery. Finance and Machinery show the lowest acceptance with a usage rate of 6% each.

Share Economy 2017 31 Share Economy 2017 – Country Deep Dive

Belgian users appreciate the The lack of clarity about liability Belgians expect Share Economy to improved value for money, current in case of problems and damage is be the norm in future but the basic non-users still have to be convinced perceived as the most significant idea of sharing will be replaced by as 46% do not perceive any downside of Share Economy. making profit. advantage in using Share Economy. For users the most significant downside In conclusion Share Economy shows From a user’s perspective Share of Share Economy services is the lack of good prospects in Belgium. 64% of the Economy incorporates various personal clarity about liability in case of problems Belgians expect Share Economy not benefits. Belgian users especially and damage – 43% of the Belgians, to be only a short-term trend. There is appreciate the improved value for users as well as non-users, agree to this also a consensus that Share Economy is money (43% same service lower price) – aspect. Furthermore the lack of quality closely linked to societal and economic 76% of them agree that sharing is the standards (23%) and security (23%) are changes. In this context 65% of the less expensive alternative to owning. also perceived as disadvantages. respondents support the idea that Share Additionally 29% of the users value the Economy will also have an impact on the intensified personal interaction between Reassuring users that providers have job market and will lead to a shift from customer and provider as well as the sufficient insurance protection would one main source of income to employees easier access to products and services increase attractiveness of Share relying on several sources. Belgians also (29%). 33% of the Belgians do not see Economy for Belgian users the most believe that Share Economy by itself is any advantage of Share Economy offers; (37%). This is mainly driven by the subject to change as 43% of respondents this is mainly driven by the current non- concern of users that anyone could expect that in 2030 the basic idea of users (46%). easily become a self-proclaimed expert sharing will be totally replaced by offering services (69%) – For 27% the making profit. The most essential success factor certainty that real professionals are driving usage of Share Economy is taking care of them (e.g. electrician) In Belgium, currently one in the possibility for users to maximize would also have a lasting effect on every six persons provides Share personal benefit. 70% of Belgians attractiveness. Economy services. consider increased flexibility for 15% of the Belgians have provided a consumers as a main advantage; this Personal security is an important factor Share Economy service within the last underlines the self-interest as well as for increasing acceptance of Share year. For next year the provider rate will the conviction that specific lifestyles Economy in Belgium. Additionally, increase by +4%pt. become more affordable by sharing 35% of users agree that a higher level things instead of owning them (70%). of transparency regarding pricing as So far, the highest provider share well as regarding compliance with legal is identified in the Hotels and Beside the benefit on a personal level, regulations (27%) would also increase Accommodation industry (10% of the economic as well as environmental attractiveness of Share Economy offers. Belgians), followed by Automotive and factors have a lower impact on usage. Transport as well as Services (both 8%). 52% of the users agree to an economic Personal referral increases trust advantage of Share Economy by creating in Share Economy offers. From a provider’s perspective, the new but only 13% see that as a personal Belgian users trust in personal referral most important identified benefit is the advantage. Furthermore, although regarding Share Economy utilization. monetary aspect of an additional income 73% believe that Share Economy 72% of users as well as 55% of current (27%) along with more flexibility e.g. reduces waste of material, only 14% non-users agree to be willing to test regarding flexible time management see an advantage for users in the higher an offer if a trusted person makes a (22%). In contrast, almost one in environmental friendliness of Share recommendation. But overall Share every three currently non-providing Economy offers. Economy companies are already Belgian does not see any advantage for positioned in the mindset of Belgians providing a sharing service. In conclusion, the Belgians, users as serious competitors to traditional as well as current non-users, are providers (72%). Nevertheless, providers, as well as interested in Share Economy driven users, have several concerns regarding by a maximized personal advantage. Within the industries users for Media the Share Economy market. 22% of However, especially due to the and Entertainment show even higher providers criticize the uncertain legal importance of personal advantage, there trust in offers from Share Economy situation, for example in terms of are still certain obstacles to overcome providers than from traditional income tax as the main disadvantage to enhance consumer confidence and providers. In all other considered followed by a lack of privacy (18%). enable Share Economy to penetrate the industries traditional providers still Belgian market. enjoy higher user confidence.

32 Share Economy 2017 Share Economy 2017 – Country Deep Dive

6 Turkey

68% have used a Share 76% plan to use a Share Economy offer within the past year Economy offer within the next year

of users are between of users are male 58% 49% 18 and 39 years old

61% have provided a Share 66% plan to provide a Share Economy offer during the last year Economy offer within the next year

€1,031 is on average 51x is the average usage spent on Share Economy offers per of Share Economy offers per user user within one year within one year

Most used Share Economy offers by Turks

Media and Retail and Automotive and Entertainment Consumer Goods Transportation (49%) (44%) (40%)

Advantages (users perceive) of Share Economy

35% agree that Share 30% agree that 29% agree that Share Economy offers a better price- Share Economy provides a Economy providers offer greater performance-ratio higher customer value choice

Disadvantages (users perceive) of Share Economy

31% have concerns 28% raise concerns 28% raise concerns regarding security regarding not clearly defined regarding prices that are not liabilities in case of issues and transparent damages

Share Economy 2017 33 Share Economy 2017 – Country Deep Dive

Turkey ranks first in terms of On average, Turks took advantage of The user share is almost at the same overall market size with an Share Economy offers 51 times per user level for each industry and the usage annual turnover of €38.3bn and is during the past year. Media offers show decreases with increasing age; this expected to increase by 86.5%. the highest utilization with 20 times per means that the group of people at the The estimated market size of the Share user per year followed by Automotive age of 60+ shows the smallest share Economy in Turkey is €38.3bn. This with 18 times and Retail and Consumer ranged between 4% (Finance) and 8% high market size can be explained by Goods with 13 times per user per year. (Machinery). the high overall adoption rate in Turkey The remaining industries show an and a well-developed Share Economy average usage frequency ranged between Regarding education background Finance sector within the country. This 8 and 10 times per user per year. Turkish users with an A-level or higher sector makes up €11.2bn and is followed account for the majority (91% of users). by strong Retail and Consumer Goods During the past year Turkish users spent 94% of spending on Share Economy and Hotels and Accommodation sectors on average €1,031 on Share Economy offers during the last year can be with €6.5bn and €6.3bn turnover. mainly driven by high spending on assigned to this category. Users with Overall revenues for Automotive and Finance offers (€701 per user per year). a lower education background (below Transportation are €4.6bn, for Services With the exception of Media the other A-level) show an almost consistent €4.2bn, for Machinery €3.3bn and for industries are ranged between 200 and user share within the industries Media and Entertainment €2.2bn. €350 per user per year. An average user ranged between 5% and 9%. But with spent €81 on Media and Entertainment regard to spending this group shows The Share Economy market in Turkey offers during the last year. For the a high preference towards Media and is expected to increase by 86.5% upcoming year Turkish users plan to Entertainment as well as Automotive next year. The growth rates across leverage spending across all industries offers. Therefore, they reach an above- all industries are above 40% and apart from Finance (–5%). average expenditure share of 16% Automotive and Transportation, Media regarding the industry Media and and Entertainment, and Machinery are Young users and users with higher Entertainment and 14% concerning expected to grow by more than 100%. education generate the majority of Automotive. The resulting future Share Economy all Share Economy turnover. market size in Turkey is €71.5bn. 51% of the Turkish Share Economy users A higher price and service quality are women. Relative to men they show a transparency as well as referrals 68% of Turks use Share Economy higher share across all industries apart are key success factors for higher and 72% of these users engage in from Service, Finance and Machinery. attractiveness and usage of Share Media and Entertainment. But concerning usage frequency of Share Economy in Turkey. In Turkey Share Economy is widely Economy offers Turkish men are more For a third (34%) higher transparency accepted – two out of three have active than women (54% of all services). in pricing would increase attractiveness utilized Share Economy offers within The disparity in usage between men and of Share Economy offers the most. As the past year (68%). With a user rate of women is most significant within the 66% of Turks are concerned about the 49% Media and Entertainment offers industries Hotels and Accommodation, fact that anyone could easily become a are most attractive for current users Automotive and Finance. For Retail and self-proclaimed expert offering services, followed by Retail and Consumer Goods Consumer Goods the gender breakdown reassurance that real professionals take (44%), Automotive (40%), Services is balanced. Media and Machinery care of them would also have a lasting and Hotels and Accommodation (33%) offers show a higher usage for women. effect on attractiveness for 30%. Current and Finance (30%). Machinery offers Overall Turkish men are on top not only users would also appreciate higher data show the lowest consumer acceptance regarding usage frequency but also security – 21% of the non-users also but still reach a user rate of 27%. For regarding expenditure share (59%). agree with this aspect. Furthermore, the next year even more Turks plan a for one in every three persons it is Share Economy utilization – the number In Turkey, as well as in the other important that providers have insurance of users is expected to increase by examined countries, Share Economy protection and there is much more +8%pt across all industries. Within the offers mainly attract young adults. 58% transparency regarding compliance with industries Hotels and Accommodation of users are younger than 40 years. legal requirements. will gain the highest increase of users.

34 Share Economy 2017 Share Economy 2017 – Country Deep Dive

Beside personal advantages 72% believe Non-users have limited trust in that Share Economy is better for the Share Economy providers from all environment especially regarding considered industries apart from a reduced waste of material (82%). Media and Entertainment – the One in every five Turks specifically majority of respondents would choose utilizes Share Economy to gain social a Share Economy provider instead of a recognition but only 14% generally traditional one. But with regard to the pay higher attention to environmental industries Media and Entertainment protection and sustainability. Regarding (40%) and Automotive (29%) Share economic reasons 84% of current users, Economy providers have already but also non-users, see Share Economy achieved a high level of trust. as creating new jobs;this is also perceived as a personal advantage by Despite the high adoption level of one in four persons. The most significant Share Economy in Turkey only 57% downside of Share Economy for Turks is of respondents believe that it will the lack of security (34%) followed by be present in the distant future. the lack of clarity about liability in case The Turks mainly believe that Share of problems and damage (26%) and the Economy will still be present in the lack of transparency regarding prices or distant future. 57% of users perceive rather costs (24%). Share Economy not only as a short-term trend and there is a consensus that For Turkish users personal referral is an Share Economy will bring societal and important factor with respect to trust economic changes. Therefore 82% of the towards Share Economy offers – 85% current users and 75% of the non-users agree to be willing to test an offer if a assume that the changed job market trusted person gives a recommendation. will lead to the shift from the traditional In this context technologies such as 40‑hour job to employees relying on social media play an important role several sources of income. because they enable users to see the people behind the offers; this also In this context almost every second user results in a higher level of trust. (54%) believes that Share Economy will have a negative impact on traditional Share Economy Media and companies by destroying jobs. Entertainment as well as Automotive and Transportation 80% of Turks think that society benefits companies are well trusted among from the basic idea of sharing. With Turkish consumers. regard to this 76% believe that Share 78% of current Turkish users as well Economy creates a strong community. as non-users perceive Share Economy But that will change in future. Almost companies as serious competitors every second Turk (53%) expects to traditional providers. Within the that the basic idea of sharing will be industries Media and Entertainment totally replaced by making profit by the (71%) as well as Automotive (56%), year 2030. current users would trust a Share Economy provider even more than a traditional one. In all other considered industries traditional providers enjoy higher confidence. For Turkish users personal referral is an important factor with respect to trust towards Share Economy offers.

Share Economy 2017 35 Share Economy 2017 – Industry Deep Dive

C Share Economy 2017 – Industry Deep Dive

36 Share Economy 2017 Share Economy 2017 – Industry Deep Dive

1 Hotels and Accommodation

The Hotels and Accommodation The biggest perceived advantage sector is the second largest Share User growth rate per country for users is a better price for the Economy sector with a market size same service quality. of €14.0bn. The average Share Economy Hotels and Germany The shared economy sector for Hotels +21% Accommodation user is 38 years old, and Accommodation includes platforms has a higher educational background such as CouchSurfing, AirBnB, +16% Austria and comes from a city with more WIMDU, 9flats, Homeaway, Gloveler, than 50,000 inhabitants. Concerning Nightswapping. While some of these +28% Switzerland gender and income, user demographics platforms – e.g. Couchsurfing – connect are fairly balanced. According to our travelers and hosts without charging +16% The Netherlands data, the largest advantage for users any fee to promote the idea of a global is a better price for the same service, traveler community, most companies are followed by a comfortable access to commission-based digital market places +39% Belgium services and a direct communication in which people can offer and search for and exchange with the providers: accommodation of any kind. Based on our calculation, the market size for the paid Hotels and Accommodation Share +65% Turkey Share Economy provides better Economy sector was €14.0bn in 2016/17 price for same service 49% and it is anticipated to increase overall Share Economy provides more by over 40% in the next 12 months. convenient customer access 26% All countries subject to the study are expected to experience significant Share Economy provides direct market growth. Each fifth respondent has used communication and exchange Share Economy Hotels and with providers 25% Accommodation services and the Share Economy adoption rate high trust traditional hotels enjoy per country is no barrier to growth. Hotels and Accommodation services Millennials are convinced by 17% Germany were used by 20% of all respondents new ways of travelling the Share within the past 12 months and therefore Economy offers as almost each it is the sector with the second highest second service in this sector is 20% Austria adoption rate behind Media and used by 18 to 29 years olds. Entertainment. Yet, only 14% of all On average each user purchases these respondent trust a Share Economy services 5 times per year ranging 23% Switzerland provider in this sector, e.g. AirBnB, between 2 and 3 times in Belgium and more than traditional hotels. Despite the Netherlands and 5 and 10 times in 18% The Netherlands this low percentage of people who Austria and Turkey. Concerning usage would trust such a provider more, only frequency, the most striking consumer 15% of all respondents are concerned behavior differences are among age 16% Belgium about a lack of hygiene associated with groups: the 18 to 29 year olds account Share Economy services. This highlights for almost each second service that is 33% Turkey that there is no fundamental mistrust provided. Particularly in Austria and against new providers but rather a Turkey, this age group is most active and strong consumer trust to traditional makes up 62% and 65% of uses. This hotels and accommodation companies. highlights that this sector is especially Nonetheless, this trust does not seem to driven by the Millennials. Similar to be a barrier to the growth of the Share this, the 30 to 39 year olds are also very Economy in this sector as the number of active and make up the second highest active users is expected to increase by group in terms of usage frequency, 31% for next year. accounting for 20% of all services.

Share Economy 2017 37 Share Economy 2017 – Industry Deep Dive

Besides, Share Economy services are Users spend on average €397 per year particularly popular among men: they on stays in the Share Economy Hotels Planned increase/decrease in account for 67% of service usages and Accommodation sector and national spending per country overall. This percentage is highest differences are relatively small. in Turkey with 83%, while in Austria 0% Germany women account for 59% of overall Average spending per user usage. Apart from this, people with a +3% Austria higher educational background tend per country to use these services more actively and this demographic group accounts –23% Switzerland for 71% of all services purchased. €435 Germany Furthermore, it can be observed that users living in larger cities are more –3% The Netherlands Austria active as 45% of all services are used €325 by people living in cities with more +2% Belgium than 100,000 inhabitants. Yet this is €430 Switzerland different in Switzerland where 59% Turkey of these services are consumed by +12% people from cities with fewer than €325 The Netherlands 20,000 inhabitants.

Costs per stay are highest in €302 Belgium Switzerland are 5 times higher People with high income account than in Turkey, but thanks to the for an above average percentage Turkey active usage of Turks the spending €378 of overall turnover while people per user is only slightly lower. with low income tend to be left The average spending per stay at Share out (includes Austria, Belgium, Economy Hotel or Accommodation Germany and Netherlands). is €79. There are significant national Referring to the overall spending per user group, almost 39% of all turnover differences and as the diagram shows Swiss and German users lead this is accounted for by people with a spending ranges between €32 per usage category with €435 and €430 per user household income of over €4k. This in Turkey to €145 in Switzerland. and Austrian and Dutch users are at the observation of the paid Hotels and lower end of this scale with €325. Given Accommodation sector is somehow in the low cost per stay it is surprising Average spending per usage contrast with the fundamental idea of that Turkish users spend on average per country Share Economy to make goods more €378 per year on this sector. This shows accessible to people with lower income that in Turkey, consumers have highly and to democratize consumption. In integrated the usage of these services in €105 Germany addition to this, only 17% of the overall their lives and enjoy the price advantages turnover is contributed by people with Share Economy offers in this sector. €66 Austria an income of below €2k. Therefore, it can be questioned to which extent paid Overall spending per users is expected Hotels and Accommodation providers to decrease slightly by –2% next Switzerland compete with low-cost or rather with €145 year. While users plan to increase premium to luxury hotels. Apart from their spending by 12% in Turkey, in this, 75% of turnover is generated other countries their spending can €122 The Netherlands by people with a higher educational be expected to increase or decrease background and 64% by people who are moderately and in Switzerland to younger than 40 years old. Besides, the Belgium decrease significantly by 23%. €127 overall turnover is relatively balanced with regards to gender and slightly €32 Turkey increases with an increasing city size.

38 Share Economy 2017 Share Economy 2017 – Industry Deep Dive

2 Automotive and Transportation

Providers host on average people The Automotive and on 16 different occasions and Transportation sector is shaping Share Economy adoption rate people younger than 40 years old urban mobility with car-, ride- per country and men are particularly active and bike-sharing offers. providers. The Share Economy Automotive and Germany Of the total survey sample 12% of Transportation sector includes services 16% respondents provided Hotels and such as car-, ride- and bike-sharing. Accommodation Sharing Economy Companies like Uber, MyTaxi, Car2Go 20% Austria services within the last 12 months. and DriveNow are transforming urban Each active provider hosted people mobility. Car-sharing fleet operators on average on 16 different occasions, offer flexible mobility solutions and 26% Switzerland which is similar in frequency with other Car2Go and DriveNow had customer Sharing Economy sectors. The number bases of 2.2m and 0.75m people 10% The Netherlands of active providers is expected to respectively by the end of 2016.1 increase by 3%pt by next year and users Additionally, there are peer-to-peer 13% Belgium plan to offer on average 18 services over car- and ride-sharing solutions such as the next 12 months which equals an Zipcar or Blablacar. The e-hailing sector increase of 9%. On average providers is also growing rapidly in Europe and Turkey are 37 years old, are male, have a both Mytaxi and Taxi.eu have more than 40% higher educational background and a 100,000 drivers in Europe. Therefore, household income of below €3k. the urban mobility environment is changing rapidly – even in smaller Overall 64% of services are provided by cities, in which big players such as men. The largest provision frequency Deutsche Bahn, LIDL and particularly age group are the 18 to 29 years old and regional energy providers develop bike- account for 34% all provided stays. In sharing networks. Based on our data, total, 61% of stays are hosted by people we estimated the market at €9.5bn; this younger than 40 years. Interestingly, is expected to grow by 90% within the in most countries the higher the level next 12 months. of education, the more often providers have offered services and in Austria, The joint efforts of current and new Germany and Turkey more than 80% players to mobilize new customers of stays are hosted by people with as well as the high trust among a higher educational background. users towards providers will help Yet, in Belgium, the Netherlands and develop this market quickly. Switzerland more than 60% of services According to our data, 19% of all are provided by people with a lower respondents used these services educational background. In contrast during the last 12 months and this to Share Economy consumers in this sector therefore ranks third in terms of sector, two out of three services are customer adoption together with the provided by people with a household Customer and Consumer Goods sector. income of below €3k and merely 6% by people with a household income above €4k. Concerning the city, it is not very surprising that the majority of services are provided in cities with more than 100,000 inhabitants. Urban mobility environment is changing rapidly – even in smaller cities.

1 Annual reports of BMW Group and Daimler.

Share Economy 2017 39 Share Economy 2017 – Industry Deep Dive

Users perceive a better price of Concerning usage frequency, the User growth rate per country Share Economy offers as a major 18 to 29 year olds (the digital natives advantage over traditional who have grown up with mobiles and providers in the Automotive and smartphones) are responsible for more +23% Germany Transportation sector. than 60% of overall usage. This customer The average Automotive and segment has a high technological affinity Transportation user is male (58%), and thus particularly appreciates the +21% Austria is below 40 years old (58%), has a mobile solutions which Share Economy higher educational level (73%) and Automotive and Transportation providers +13% Switzerland comes from a city with more than developed to enable on-demand mobility. 50,000 inhabitants (57%). More women The fact that only 12% of usage is than men tend to use these services contributed by people above 50 year olds +33% The Netherlands only in Turkey (53%) and the vast highlights the almost untapped potential majority of users there comes from cities that lies in this customer group. Apart with more than 500,000 inhabitants from this, men tend to use these services +19% Belgium (70%). According to our data, the most more frequently than women. It is not perceived advantage is the better price very surprising that usage frequency for the same service, followed by more increases with the number of citizens in Turkey +44% convenient customer access and a higher a city. This is driven by the fact that in customer benefit. This seems very these cities Share Economy Automotive intuitive as the transportation sector and Transportation services are well is very price- and convenience-driven. developed whereas providers are only Therefore, superior customer value can gradually entering small to medium- be provided to customers with a user- sized cities. Significant national differences in friendly, easily-available and convenient the adoption of this sector can be service network that considers high Similar to the positive trend in observed: only 10% of respondents in price sensitivity of consumers. adoption, users are expected to the Netherlands and 13% in Belgium increase their spending in this are users in contrast to 40% in Turkey. sector. The overall anticipated growth rate Share Economy provides better The average spending per trip is €28. for next year is 27% and all countries price for same service 47% There are considerable national show a double digit growth rate; in differences: Turkey it is even 44%. In addition to Share Economy provides more the growth in the number of consumers convenient customer access 27% who plan to use these services, current Share Economy provides higher Average spending per usage players are reinforcing their efforts per country for quick expansion and new players utilitarian value 26% are emerging, e.g. Free2Move or Coup. Companies have managed to €53 Germany convince users of the reliability and trustworthiness of their offering. Digital natives account for the Asked if they trust more a Share majority of usage in this sector €12 Austria Economy e-hailing provider such as while the age group 50+ provides Uber, 47% Share Economy Automotive the highest potential for customer €28 Switzerland and Transportation users agreed to mobilization On average each user consumes these do so, while only 43% trust local taxi €31 The Netherlands companies more (10% of users did not Share Economy services 10 times know any e-hailing company). This is per year, which equals the average particularly relevant for the growth of consumption of two times per year €116 Belgium this sector as 60% of non-users consider across the whole of society in the trying Share Economy Automotive and countries subject to the study. The range of average usage per year across all Transportation services if a trusted €12 Turkey person recommends a certain Share countries is very large: in Belgium it is Economy company. only 3 times per year while in Turkey it is 18 times per year.

40 Share Economy 2017 Share Economy 2017 – Industry Deep Dive

The range of average is between €12 in turnover, people from all income Austria or Turkey up to €116 in Belgium. Planned increase/decrease in classes also engage actively in this This high range may be explained by spending per country sector. Similar to this, the size of city of the heterogeneity in service offerings residence does not seem to be a decisive and prices between e-hailing and –4% Germany factor for spending per user. car-sharing as well as urban or long distance usage. Given the average One in every eight respondents +23% Austria spending per trip and usage frequency provided Share Economy it becomes clear that Share Economy transportation services within the Automotive and Transport providers –22% Switzerland last year. still compete with traditional taxi, car In the sample, 12% provided Share rental and potentially long-distance Economy transportation services within +17% The Netherlands transport providers. Given the high the last 12 months. The average number price difference and only moderate of services per provider is 15. A total of +5% Belgium usage frequency, one can deduce that 14% of the respondents plan to provide Share Economy providers have not yet these services in the next year, resulting developed scale and price efficiencies in an increase of 22%. Additionally, to offer a real alternative to public +82% Turkey providers plan to provide more services: transport. 18 times on average. Overall, these findings result in an increase of 40% The mean spending per user is €268. in the Share Economy Automotive and Transportation supply. However, according to our data the number Average spending per user of services provided in Belgium and It is highest in Belgium and Germany per country Austria is expected to decrease by 22% with €349 and €345 per user and lowest and 17% respectively. in Austria with only €96 on average. The outlook for next year is predominantly €345 Germany positive as users plan to increase their Most providers are male and spending by 15%. In particular, Turkish younger than 40 years and have a monthly disposable household €96 Austria and Austrian users are intending to spend more in this sector (82% and income of less than €3k. Providers are predominantly male, 23%) while Swiss and German users younger than 40 years and have an €270 Switzerland plan to decrease their spending (–22% educational level of A-level or higher. and –4%). In Switzerland 58% of all providers €172 The Netherlands have an education level of below Users above 50 years old are a very A-level. In Austria, Belgium, Germany valuable customer segment while and the Netherlands 60% of providers other demographic factors have have a household income of less than €349 Belgium no decisive influence on spending €3k per month and most providers behavior. come from cities with more than In comparison to usage frequency, €226 Turkey 100,000 inhabitants. In terms of provision women in Germany and Turkey spend frequency, 65% of all Share Economy more than men per trip and thus transport services are provided by male account for 62% of the overall turnover providers and 60% by people younger in these countries. In the remaining than 40 years. Besides, 75% of all services markets, men generate 71% of the are provided by people living in cities overall turnover in total. Interestingly, with more than 50,000 inhabitants. the age group 50+ generates 34% of Furthermore, providers with low income overall turnover. Given their low usage levels tend to be more active: in Austria, frequency this highlights again how Belgium, Germany and the Netherlands valuable this customer segment could 70% of all services were provided by become to companies if only mobilized people with a disposable household by providers. Although people with income of less than €3k. more than €4k household income account for almost a quarter of overall

Share Economy 2017 41 Share Economy 2017 – Industry Deep Dive

3 Retail and Consumer Goods

The last decade has seen the Although users in this sector still This sector has been observed to be arrival of a high number of trust traditional outlets more, used by only few consumers in Belgium platforms focusing on the second- they are convinced of the positive (6%) and the Netherlands (7%), while hand market. effects on society of share economy. it is well developed in Turkey (44%). The Share Economy Retail and On average 19% of all respondents Little surprisingly most non-users of Consumer Goods facilitates peer-to-peer used these services within the last this sector trust traditional fashion sharing and reselling of consumer goods 12 months and therefore it ranks third outlets more than online second-hand via digital market places. eBay was one with Automotive and Transportation in platforms, such as Vinted, and 40% of of the first companies to create a digital terms of adoption level behind Media these do not know any Share Economy marketplace in this sector and over the and Entertainment and Hotels and provider in this sector. Although Share last decade a wide range of start-ups has Accommodation. Economy users also trust traditional appeared that cover for instance flea outlets more (56%), they have a markets, second hand retail and sharing very positive attitude towards Share of clothing etc. For example Rent the Share Economy adoption rate Economy in general: 77% of them agree Runway, Le Toe and Chic by Choice per country that Share Economy is better for the focus on female premium and luxury environment and 82% agree that it fashion. These companies try on the helps reduce waste. Interestingly, 55% Germany one hand to democratize luxury fashion 20% of users and only 35% of non-users in and on the other hand reduce waste this sector trust brands less nowadays. associated with fashion production by 20% Austria This sector is developing rapidly and enabling their consumers to rent fashion a total of 23% of all respondents plan over a digital platform. Other platforms 13% Switzerland to use these services within the next such as Vinted position themselves as a year which equals an overall growth of peer-to-peer sales platform for second- 7% The Netherlands 23%. Particularly the Belgian and Swiss hand fashion. Furthermore, a significant sectors are developing rapidly with user 6% Belgium niche market that focuses on baby growth rates of above 50%. In Austria clothing and toys has also arisen. This the number of users is expected not to market is difficult to isolate as also many 44% Turkey increase in the next year. corporate providers interact on these market players and according to our data, we estimate it at €9.9bn across all countries subject to the study.

User growth rate per country

+14% Germany

0% Austria

+58% Switzerland

+35% The Netherlands

+63% Belgium

+29% Turkey

42 Share Economy 2017 Share Economy 2017 – Industry Deep Dive

The majority of users are female, purchased by people with a household Users spend on average €218 per year in on average 37.5 years old and have income of below €3k. Additionally, this sector. a monthly disposable household people from cities with more than income of below €3k. 100,000 inhabitants use these services The average Share Economy Retail and more frequently than people from Average spending per user Consumer Goods consumer is 37.5 years smaller cities (52% of the total number per country old, is female and has a higher of usage) and 70% of services are educational background. Concerning accounted for by people with a higher Germany income and size of city of residence educational background. €198 user demographics are fairly balanced. Users of this sector highly appreciate The average spending per usage €125 Austria that Share Economy offers a lower price in the Share Economy Retail for the same performance, a wide range and Consumer Goods sector is of choices as well as more convenient relatively low with €25 and users €336 Switzerland customer access: plan to increase their spending. The average expense per usage – sharing or purchasing second-hand €326 The Netherlands Share Economy provides better fashion – is €25. price for same service 46% €40 Belgium Share Economy provides a wide Average spending per usage range of choices 26% per country €268 Turkey Share Economy provides more convenient customer access 25% €25 Germany

€17 Austria

Planned increase/decrease in Users purchase or share on €88 Switzerland spending per country average 9 times per year in this sector and people with a –6% Germany household income below €3k tend €55 The Netherlands to be more active. +1% Austria Each user purchases Share Economy Belgium Retail and Consumer Goods services €14 –28% Switzerland on average 9 times per year. Belgian €20 Turkey users are least active with an average usage of 3 times per year whereas –38% The Netherlands Turkish users have an average usage of 13 times. Concerning usage frequency, the majority (54%) of services are Switzerland leads the field in this Belgium purchased by women and 68% of category and has considerably higher +862% all services by people younger than cost per usage with €88 while this cost 40 years old. Furthermore, 71% of is only €14 and €17 in Belgium and the overall number of services are Germany. +36% Turkey

Share Economy 2017 43 Share Economy 2017 – Industry Deep Dive

16% of all respondents provided Share Economy retail services Share Economy providers within the last year and most providers are female and younger offer services 19 times per than 40 years old. year on average. Our survey data shows that the provision of Share Economy retail services is relatively common and providers offer services on a frequent basis: 19 times per year on average. National differences are considerably 19% of respondents plan to provide high, as Swiss users tend to spend €336 Share Economy Retail and Consumer whereas Belgian users spend only €40 Goods services next year, resulting in per year. Swiss and Dutch users plan to an increase of 20% in comparison to decrease their spending by over 25% in the current status. Overall, 53% of all contrast to Belgian and Turkish users who service providers are women. However, are expected to increase their spending. in Belgium and the Netherlands 72% The overall spending per user is expected and 60% of all providers are male. to increase by a double-digit rate. Besides, 62% of provider are younger than 40 years and the average age The Share Economy Retail and of providers is 37.3 years. Except for Consumer Goods sector has Switzerland, the majority of providers developed a strong premium in the other countries has a higher segment, in which particularly educational level: 70% of all providers. high income groups participate. In Switzerland only 47% of providers Concerning the overall spending have a higher educational background. behavior, it has been revealed that Besides, 65% of all respondents in people with a household income above Austria, Belgium, Germany and the €4k generate 41% of the overall turnover Netherlands have a monthly disposable in this sector. This is particularly household income below €3k and 49% significant since they account for only of all providers come from cities with 10% of the overall usage frequency. more than 100,000 inhabitants. In Consequently, it becomes clear that Belgium, the Netherlands and Turkey, there is a strong premium and probably the figures are 12%, 20% and 85% of all even luxury sector within the Share providers respectively. Economy Consumer Goods and Retail sphere, in which predominantly people Most active providers are male, with income participate. are younger than 40 years and have a monthly disposable The age group of users below 29 years household income of less than €3k. old accounts for 51% of the overall Relative to the provision frequency, turnover in this sector. Therefore, this more services are provided by people group drives the demand in the Share above 40 years: 53% of the total number Economy Retail and Consumer Goods of services. There are significant sector and is a very important target national differences: While in the group. Furthermore, it can be observed Netherlands only 31% of all services are that spending in this sector decreases provided by people older than 40 years, with increasing age and people above in Austria 69% of all services and in 60 years old account only for 7% of the Turkey 57% of all services are provided overall turnover. Besides, 79% of all by people in this age group. Apart from turnover is generated by people with this, 69% of all services in Austria, a higher educational level and 52% by Belgium, the Netherlands and Germany people living in cities with more than are provided by people with a disposable 100,000 inhabitants. household income of less than €3k.

44 Share Economy 2017 Share Economy 2017 – Industry Deep Dive

4 Services

The sharing economy industry for Demographic factors seem to be services includes providers that offer User growth rate per country fairly unrelated to adoption level household services or platforms such as and as in other Share Economy Appjobber, streetspotr, FragNebenan sectors, a better price is seen as a Germany and many more. This sector features not +37% main advantage. only platforms and providers with a free Users of the Share Economy Service usage principle but also platforms with +43% Austria sector are on average 40 years old and a pay-per-use policy. In 2016/17 the the adoption rate only slightly decreases market for services Share Economy was with increasing age. Furthermore, it has Switzerland €7.4bn. Shared economy services in this +57% been observed that consumers tend to industry show an increasing trend with participate in this sector regardless of a planned growth rate of 61% for next +40% The Netherlands gender, income and size of home town. year across all countries. Users perceive a better price for the same service as the largest advantage, 65% of users in this sector are followed by comfortable access to +100% Belgium still concerned that anyone could services and higher consumer benefits: easily become a professional provider regardless of +59% Turkey qualifications. Share Economy provides better Only 14% of all consumers participated price for same service 41% in the Share Economy Service sector Share Economy provides more within the past 12 months (2016/17), convenient customer access 24% which represents one of the lowest adoption rates among all Share Except for Turkey, countries are fairly Share Economy provides higher Economy sectors. homogeneous within this sector and consumer benefits 24% adoption rates range between 8% and 13%. Even though 39% of users Share Economy adoption rate trust some Share Economy providers per country that connect consumers with private craftsmen more than local craft business (in contrast to 48% who do not), 65% 13% Germany of them are concerned that everyone regardless of prior education could 13% Austria become a professional. This means that companies clearly need to certify and 11% Switzerland check the professional qualifications of people who would like to provide 9% The Netherlands services to their peers. Given a certain security standards for consumers, this 8% Belgium sector can be expected to grow in the next year by over 35% in the markets subject to the study. 33% Turkey

Share Economy 2017 45 Share Economy 2017 – Industry Deep Dive

The usage frequency is fairly Average planned spending per independent of socio-demographic active user is €244 and overall Average spending per user factors, indicating that anyone there is a positive trend in the per country can use these services. spending behavior of users. It has been observed that the average The average spending per usage is €50 usage per respondent is 0.7 times and for all countries. €252 Germany per active user 5 times within the last 12 months. Per respondent, Turkey €138 Austria (3 times) and Germany (1 time) show Average spending per usage per country the highest usage frequency, Belgium €155 Switzerland (0.2 times) and Austria (0.3 times) depict the lowest. Active users consume €59 Germany €127 The Netherlands these services most often in Turkey – 9 times a year and least in Belgium – €68 Austria 3 times a year. On average, men tend €681 Belgium to make more frequent use of the Switzerland Share Economy Service sector: 61% €50 of all services are used by them and €39 The Netherlands this percentage is particularly high in €236 Turkey Belgium with 78% and in Germany with 70%. The Netherlands represent Belgium the only exception with 57% of female €253 users for services. The largest user group in all countries are people aged Planned increase/decrease in Turkey 18–29 and account for 49% of overall €28 spending per country uses in general and little national differences exist in their consumption –9% Germany behavior. On average for all countries, the extent to which users engage in the The highest spending per usage is found +21% Austria Share Economy Service sector reflects in Belgium (€253) and Austria (€68), the level of education of the consumer: the lowest values are in Turkey (€28) 71% of services are used by people and the Netherlands (€39). Across all with a higher educational background. respondents the average spending per +219% Switzerland In Austria and Germany this group is respondent is €35, the average spending less active with 60% and 53% of all per active user of Share Economy services used. Besides, users consume services is €244 on average. The Netherlands these services actively across all income –21% groups and almost regardless of their home town size. –20% Belgium

+7% Turkey

46 Share Economy 2017 Share Economy 2017 – Industry Deep Dive

Belgium (€681) and Germany (€252) 12% of respondents provide on group with the highest provision for represent the highest average spending average 16 services per year and services on average are 18–29 years per user; the Netherlands (€127) and the overall number of services old representing 28% of total services Austria (€138) depict the lowest average provided is expected to increase provided and the average provider is spending per active user in the last by 37%. 38.7 years old. 71% of all providers 12 months. Across all countries, 12% of respondents have an education level of A-level or have provided services in the SE Service higher. On average 35% of providers Users plan to increase their spending sector over the last year and 15% in AT, BE, DE and NL have a monthly on average by 11% to €271 and Belgium plan to do so next year, representing disposable income of €2,000–3,000; in leads this category with €548 per user an increase of 24% in the number of Belgium this income class represents in contrast to the Netherlands where providers. On average respondents 65% of total provision. Concerning spending per user is expected to drop provided 2 services and providers the city size of providers the highest to €100. provided 16 Sharing Economy services ratios are from cities with a population over the last year and 3 and 18 services size of more than 500,000 (34%). Millennials as well as people with respectively are planned for next year. 60 % of service provisions are from a higher educational background Consequently, the overall number of people living in cities with fewer than are driving the turnover of the services provided is expected to grow by 100,000 inhabitants; in Switzerland Sharing Economy service sector. approx. 37%. Overall, 70% of services the majority of service providers Although the age group younger than are provided by men and the highest are from cities between 5,000 and 29 years old accounts for only 31% proportion of male provision can be 20,000 inhabitants (57%). The of overall services used, it generates observed in Austria and Germany: corresponding figures for Belgium and 49% of overall turnover in the Share 85% and 79% of all services. The age Austria are 27% and 26% respectively. Economy Service sector. Other age groups tend to spend less on the services they use. Spending between women and men is relatively balanced, though women tend to spend a bit more. 81% of spending is from users with an A-level or higher, indicating a strong relationship between education level and spending. 47% of overall spending in Austria, Belgium, Germany and Netherlands is from people with a monthly household income of less than €3,000; 31% of total spending is from users with an income 71% of all providers have an of more than €4,000. This finding emphasizes that users do not make education level of A-level or higher. use of sharing economy services solely for money saving reasons. Lastly, 34% of total spending is from users living in cities with a population of above 500,000 inhabitants, in Turkey this user city category represents 63% of spending and in Germany 42%.

Share Economy 2017 47 Share Economy 2017 – Industry Deep Dive

5 Finance

The Share Economy Finance sector One barrier to customer mobilization for includes peer-to-peer lending and Share Economy adoption rate Share Economy providers is that 37% borrowing, crowd-funding and social per country of all non-users currently do not know payments. By relying on innovative risk any Share Economy financial platform. assessment systems, Fintech start-ups 9% Germany Furthermore, providers should address such as auxmoney enable consumers consumer concerns related to liability whose credit applications might be questions and lack of security of Share 9% Austria falsely declined by banks to receive a Economy Services. Currently, 45% of correct risk assessment and apply for non-users consider unclear liability in 6% Switzerland loans via their platforms. These are case of issues as a major disadvantage often free market places that enable 7% The Netherlands of Share Economy. If these concerns can organizational and private investors to be addressed and consumer awareness finance these loans. A significant share 6% Belgium can be further increased, the number of of the turnover at these platforms is active users might grow more strongly based on peer-to-peer lending which can next year than the expected increase of be seen as a form of sharing economy. 30% Turkey 2%pt based on our data. Furthermore, companies such as Kickstarter or Startnext have specialized Better price, more convenient into crowdfunding. customer access and wider range of choices are considered as major advantages of Share Economy by Definition crowdfunding User growth rate per country a predominantly male Finance clientele. The practice of funding a project +2% Germany Users are predominantly male or venture by raising money from (65%) and have a higher educational a large number of people who +20% Austria background (76%) and an average age each contribute a relatively small of 36.5 years, but users exist across amount, typically via the Internet. all age groups. Although 47% of users Source: https://en.oxforddictionaries.com/ +45% Switzerland come from cities with more than definition/crowdfunding 100,000 inhabitants, users can be found +17% The Netherlands in cities regardless of their size. The same holds true for income as people with different income levels participate According to our data, we estimated the +45% Belgium in the Share Economy Finance sector. Share Economy Finance market for all Although financial parameters can be countries subject to the study at €22.2bn expected to be the main driver of the and expect relatively moderate growth Share Economy Finance sector, only of 9% for next year. +46% Turkey 38% of Finance users agree that Share Economy offers a better price for the The Finance sector has the second same services in contrast to 36% of non- lowest number of active users and users. Other perceived advantages are uncertainty in case of liability the more convenient access to services issues and a lack of awareness are and a wider range of choices for Share highest growth barriers. Particularly, in Turkey the sector is Economy services. The Share Economy Finance sector is widely adopted as 30% of respondents the second least used sector of industries already use it there. Switzerland and Belgium rank last in terms of consumer examined in this study. 11% of all Share Economy provides better adoption with only 6% active users respondents actively use it. price for same service 38% among the respondents. More than 50% of both Finance users and non- Share Economy provides more users trust traditional financial service convenient customer access 25% providers more than Share Economy providers in this sector. On the other Share Economy provides a wider hand, at least 30% of users consider the range of choices 24% latter providers more trustworthy in contrast to only 8% among non-users.

48 Share Economy 2017 Share Economy 2017 – Industry Deep Dive

Similar to the traditional Finance Mean spending per user is Active users spend on average €1,088 sector, Share Economy Finance €1,088 and but a decrease of per year. services are predominantly used 26% is expected. by male users with a high income The average spending per usage is €202. level. Average spending per user The average usage frequency is per country 0.6 times for all respondents and Average spending per usage 5,4 times per user. Turkish users engage per country Germany most actively in Share Economy Finance €1,229 with an average of 9 times a year, €278 Germany whereas Dutch users tend to purchase €1,358 Austria these services only 2 times a year. Similar to the high proportion among €679 Austria users in general, 71% of all Finance €2,415 Switzerland services are provided to men. However, female users in the Netherlands are very active and account for 43% of all service €832 Switzerland The Netherlands provision. Apart from this, it can be €1,082 observed that the demand for Finance €412 Belgium services increases with the household €639 The Netherlands income of users: 37% of all services are used by people with an income level €701 Turkey of above €4k. Besides, almost each €129 Belgium second Share Economy Finance service is purchased by a person from a city €74 Turkey with more than 500,000 inhabitants. Planned increase/decrease in Although across all countries, people spending per user per country with a higher educational background account for almost 3 out of 4 purchases, In Turkey spending per usage is lowest in Switzerland people with a lower with €74 and Switzerland leads this –26% Germany educational background have also category with €832 per usage. identified the potential of Share Economy Finance services and are –49% Austria responsible for 50% of the number of services provided. –18% Switzerland

–62% The Netherlands

37% of all Finance –19% Belgium services are used by people with –5% Turkey an income level of above €4k.

Share Economy 2017 49 Share Economy 2017 – Industry Deep Dive

The Share Economy Finance sector is the one with the highest spending per user.

Swiss users tend to spend €2,415 Turkey it is only 54%. Besides, the mean per year while Belgian users spend age of providers is 36.5 years and the only €412. Consequently, the Share youngest average is in Austria where Economy Finance sector has been 57% of all providers are younger than clearly identified as the sector with the 29 years. In addition to this, 64% of all highest spending per user. Nonetheless, providers are younger than 40 years respondents plan to spend 9% less on old. The majority of providers in all Share Economy Finance services next countries have a higher educational year and active users plan to spend background and the average of 26% less. This spending is expected to providers with a higher educational decrease most in the Netherlands and background is 75%. Besides, people Austria: by 62% and 49% respectively. across all income levels provide financial Share Economy services Approximately 9% of all and the majority of financial shared respondents provide Share economy services come from cities with Economy Finance services and more than 100,000 inhabitants. most of them are male and younger than 40 years. Male providers and providers According to our data, only 9% of from cities with more than respondents provide Share Economy 500,000 inhabitants are most services in the finance sector but on a active. frequent basis: on average 16 times per Overall male providers tend to be more year. In Austria the mean provision per active since 68% of all services are provider is 6 per year; in Germany and provided by men. 52% of all services Netherlands this average is 11 times were provided by people younger than per year and in the remaining countries 40 years and particularly providers it is 17 times or above. The number of between 50 and 59 years were very providers and the average of service active accounting for 25% of all service provisions per provider are expected provisions. Furthermore, 42% of all to increase by 18% and 15% next year. services were provided by people with Overall, 63% of all finance providers a household income between €2k and are men. In Belgium and Germany this €3k. Besides, 52% of all services were percentage is 77% and 72% while in provided by people living in cities with more than 500,000 inhabitants.

50 Share Economy 2017 Share Economy 2017 – Industry Deep Dive

6 Media and Entertainment

Media and Entertainment sector Drivers for the Share Economy with highest growth rate (107%) User growth rate per country Media and Entertainment sectors The sharing economy industry for Media are predominantly price and and Entertainment includes platforms –8% Germany convenience. such as Spotify, SoundCloud, Hitflip, Average users of the Share Economy Bookelo and many more. This sector –11% Austria Media and Entertainment sector are features not only platforms with a free younger than 40 years old. Although usage principle but also platforms with –11% Switzerland 37% of users are older than 40 years old, a pay-per-use or a monthly fee policy. adoption rate decreases with increasing In 2016/17 the market for Media and age. Besides, the user profiles are very Entertainment Share Economy was –33% The Netherlands heterogeneous and people use these €3.7bn. Shared economy services in this services regardless of their gender, industry show an increasing trend with income level, city size and educational a planned growth rate of 107% for the –19% Belgium background (although people with upcoming year. higher education have a slightly higher adoption rate). Users perceive that the Turkey The Share Economy Media +24% most significant advantages of the Share and Entertainment providers Economy are that it offers a better price managed to create a high level of for the same performance, followed by trust among consumers reaching more comfortable access to services and a high adoption level. direct communication and exchange Taking all respondents into consideration The Belgian sample showed the lowest with the providers: services within this sector were used adoption rate with 22% in contrast to by 28% of all respondents within the Turkish sample with an adoption Share Economy provides better the past 12 months (2016/17) which rate of 49%. Share Economy providers price for same service represents the highest adoption among in this sector managed to create a very 46% all respondents. Translated to the entire good reputation and trust among its Share Economy provides more population this means that almost every consumers: 67% of users trust Share convenient customer access 25% third person has used some type of Economy providers such as Spotify more sharing economy service for media or than traditional providers whereas only Share Economy provides direct entertainment in the last year. 27% of users trust traditional providers communication and exchange more. Additionally, 42% of non-users with providers 25% trust Share Economy providers more, Share Economy adoption rate which means that trust is no barrier for per country growth in this sector.

23% Germany

28% Austria

25% Switzerland

35% The Netherlands

22% Belgium

49% Turkey

Share Economy 2017 51 Share Economy 2017 – Industry Deep Dive

Digital natives make up most of The average spending per user Users in Switzerland spend on average the consumption in this sector and in the Share Economy Media and most: €91 per year. This is followed by usage rates indicates that it has Entertainment sector is expected Turkey with €81 per year and Belgium become a central part in the lives to increase next year. and Austria show the lowest average of users. The spending per respondent per year is spending: €46 and €41. Among all respondents the average €18 and per active user €64. usage was 9 times within the last year; The average planned spending of all the Netherlands show the highest usage respondents is €30 per person across rates with 21 times per year while Average spending per user all countries, and of active users it is Belgium shows the lowest usage rate per country €116 on average. The highest individual 6 times per year. On average active users spending can be observed for Belgium utilized Media and Entertainment offers with €224 while in Austria users plan over 33 times, which represents the €62 Germany to spend only €58. Consequently, an highest value for all sharing economy increase of 81% among users on an industries by far. This can be explained €41 Austria individual level can be expected. by the low costs and significantly low usage barriers – online registration Digital natives seem to be more €91 Switzerland is often not required as for instance price sensitive than other user at SoundCloud. Dutch users consume segments and therefore also more these services most frequently with an €56 The Netherlands intensely use platforms that are average over 60 times per year, whereas free of charge. the corresponding figure for Germans Considering all Share Economy users Belgium is only 29 times per year. These rates €46 of this industry, men account for 61% show that for many consumers Share of all spending. The 18 to 29 year Economy Media and Entertainment €81 Turkey olds make up the highest individual services have become a central part in percentage of this industry’s turnover: their lives and that they use them at 41%. Consequently, it can be deduced least at a weekly level. that this target group is relatively price sensitive and spends less compared to The largest usage age group, accounting others as its high share of overall usage Planned increase/decrease in for 58% of all uses, are the digital (58%) does not translate completely into spending per user per country natives or the 18–29 year olds across additional revenues. The same holds all countries – in Switzerland and true for consumers with a disposable Austria they even make up more +35% Germany household income: they make up 15% of than 70% of overall usage. Similar to overall uses but only 4% of the revenues. the proportion of users, people with This discrepancy can also be explained +40% Austria a higher educational background by the wide offering of free content account for a higher share of uses. The platforms such as Soundcloud. The usage frequency on average is evenly +24% Switzerland size of a home town of users appears spread across all income levels which to be an indecisive factor concerning indicates that lower income classes are +52% The Netherlands user spending as users spending across not excluded from consumption and users of different city sizes is relatively that the Share Economy Media and balanced. Besides, users with a higher Entertainment sector is also popular educational background tend to pay among people with higher income +385% Belgium only marginally more than the amount levels. Furthermore, the city size and which would be explained by their gender seem not to be crucial indicators usage frequency. for usage intensity in this Share Turkey Economy sector. +104%

52 Share Economy 2017 Share Economy 2017 – Industry Deep Dive

7 Machinery

Number of offerings per provider The Machinery Share Economy expected to increase by 4% next sector leverages the efficiencies and User growth rate per country year. cost savings associated with sharing Of all respondents 12% have provided assets that are fairly underutilized. Media or Entertainment Share Economy Particularly specialized equipment +51% Germany services during the past 12 months. that requires high upfront investment Of all respondents the provision was and is seldom used offers the greatest +3% Austria 2 times in the last year and 18 times potential, since users are more likely for active providers of Media and to face the inconvenience of sharing Entertainment sharing economy these tangible assets. An example +76% Switzerland services. Providers of services plan to for successful organizations which offer on average 19 services next year; have addressed this problem are consequently the number of Media and national machinery ring associations. +15% The Netherlands Entertainment services per provider are Furthermore, in Germany there are also expected to grow by 4%; Austrians plan companies addressing the B2C or peer- the highest provision increase with 42%. to-peer segment such as Mietbox24. +69% Belgium Of all the Media and Entertainment Based on our data, we estimated this services 63% are provided by men. The market at €5.0bn for the countries in age group with the highest provision scope of the study. +73% Turkey are 18–39 year olds accounting for 38% of all services provided; in Austria Machinery sharing in the B2C this age group represents 89%, in and peer-to peer segment is in an Switzerland 49%. 64% of all providers early maturity stage and therefore are under 40 years and 77% of all has particularly high growth providers have an education level of potential in this sector. While in Turkey 27% of all respondents A-levels or higher, in Austria the ratio Machinery sharing is the least used are users, this proportion is only 6% in between above A-level and below is Share Economy sector with an average Switzerland and Belgium. The average 50%. Concerning household income, of 10% of users among the respondents. user is male, younger than 40 years old 32% of all service provisions in Austria, and comes from a city with fewer than Belgium, Germany and Netherlands 50,000 inhabitants. The percentage of are accounted for by people with an Share Economy adoption rate people from such cities is particularly income of €2,000–3,000 per month; in per country high in Austria, Belgium, the Austria this income range accounts for Netherlands and Switzerland with 69% on average which indicates a more rural 72% of all provisions, in Belgium 41%, 8% Germany however in the Netherlands only 14%. usage of Machinery Sharing in these 41% of provisions are from people living countries. Concerning income level, 13% Austria in cities with a population of more than 60% of users have a monthly disposable 500,000 inhabitants; in Germany 57% income of less than €3k. 6% Switzerland of all provided services are generated in cities with 50,000–100,000 inhabitants, 9% The Netherlands in Austria and Belgium the majority of services provided are from cities with 6% Belgium 5,000–20,000 inhabitants (67% and 56% respectively). 27% Turkey

Share Economy 2017 53 Share Economy 2017 – Industry Deep Dive

In total, 15% of all respondents plan Similar to their proportion among While in Belgium and Switzerland to use these services next year, which active users, men consume 58% of all rural markets are particularly would imply a 49% increase of the machinery sharing services. Further­ strong, most revenues in Turkey number of users. Particularly in more, usage frequency decreases with are generated in big cities. Belgium, Germany, Switzerland and age and the 18 to 39 year olds make up The average spending per usage is €39. Turkey growth rates are above 50% 65% of the overall machinery sharing Usage costs are high in Belgium and whereas in Austria the number of users demand. Furthermore, in general Switzerland with €203 and €150 on is not expected to grow strongly. Users 47% of overall services are accounted average. In contrast to this, in Turkey, perceive price, more convenient access for by people from cities with fewer the Netherlands and Germany spending and a higher customer benefits as main than 20,000 inhabitants and rural per usage is on average considerably advantages: usage of machinery sharing can be lower with only €21, €32 and €36 observed especially in Switzerland: respectively. This usage cost difference 82% of all services were provided to can be explained due to a higher Share Economy provides better people living in cities with fewer than proportion of uses in Belgium and price for same service 38% 5,000 inhabitants. Apart from this, it can Switzerland in a rural area, which can be observed that people with a higher be expected to be more cost intensive. Share Economy provides more educational background accounted for convenient customer access 24% the majority of service provisions in both The mean spending per user ranges on Share Economy provides higher urban and rural areas. This is connected a country level from €155 in Germany customer benefit 24% with the high industrialization and thus to €645 in Belgium and is overall technological know-how required in the €221 per user. agricultural sector.

Frequent Machinery Sharing users Average spending per user are predominantly male and they Average spending per usage per country are to be found mostly in a rural per country area. €155 Germany The average usage frequency among €36 Germany all consumers is 0.6 times and across €188 Austria users it is 6 times. Turkish user in €91 Austria particular purchase sharing machinery services frequently: 10 times per year €341 Switzerland on average. In contrast to this Austrian €150 Switzerland and Swiss users buy these services only €167 The Netherlands 2 times on average. €32 The Netherlands

€645 Belgium €203 Belgium

€213 Turkey €21 Turkey

54 Share Economy 2017 Share Economy 2017 – Industry Deep Dive

Approximately 9% of all The majority of active providers Planned increase/decrease in respondents provide machinery are male, younger than 40 years spending per user per country sharing services and providers are of age and in most countries predominantly from cities with from cities with fewer than –5% Germany fewer than 20,000 inhabitants. 20,000 inhabitants. According to our data, 9% of all Men and people younger than respondents provided machinery 40 years were most active providers, –11% Austria sharing services within the last accounting on average for 77% and 12 months. While in Turkey the average 70% of all services provided. Except for of all respondents providing these Switzerland, providers with an A-level –64% Switzerland services is 35%, in the remaining or higher educational background countries this respective value is tended to be more active and 74% of approx. 5%. 10% of all respondents all services were provided by people +24% The Netherlands plan to provide these services next year, with such a background. Besides, it resulting in an overall increase of 18%. can be observed that except for people –2% Belgium Particularly more people plan to provide with a disposable household income services in Austria (growth rate of 47%). of below €1k, people engage actively +33% Turkey in machinery sharing regardless of On average 62% of providers are male their wage levels. Additionally, 73% and 64% of them are younger than of all services in Germany and Turkey 40 years. Furthermore except for are provided by people from cities Switzerland and Belgium the majority with more than 100,000 inhabitants of these has a higher educational in contrast to the other countries in Users indicate that they plan to increase background, more than 60% on average. which 74% of all services are provided their individual spending by 5% on Above a household income of €3,000 the by people from cities with fewer than average to €233. According to our data, number of providers tends to decrease 20,000 inhabitants. Swiss users are expected to decrease for Austria, Belgium, Germany and the their spending on share machinery Netherlands. Besides, it can be observed services significantly. Austrian, German that 58% of providers in Germany and and Belgian users plan to also decrease Turkey come from cities with more their spending slightly, whereas Dutch than 100,000 inhabitants, while in the and Turkish users are expected to remaining countries on average 56% of increase spending by more than 20%. providers live in cities with fewer than 20,000 people. Similar to their usage frequency men spend significantly more than women on Machinery Sharing services. The same holds true for the educational background of people as well age groups where 64% of overall revenues are generated by people younger than 40 years old. Apart from this, it can be observed that in Austria, Belgium, the Netherlands and Switzerland On average of machinery 90% of all spending is attributable 62% to people living in cities with fewer sharing providers are male and 64% than 50,000 inhabitants. In contrast to this in Germany and Turkey where of them are younger than 40 years. 60% of all spending is generated by consumers from cities with more than 100,000 inhabitants.

Share Economy 2017 55 Contacts

Contacts

Germany Switzerland Netherlands

Prof Dr Nikolas Beutin Alexander Schultz-Wirth Peter Hoijtink Tel: +49 89 5790-5926 Tel: +41 58 792-4400 Tel: +31 88 792-3090 Mobile: +49 151 62459745 Mobile: +41 79 250-24 74 Mobile: +31 6 42019383 [email protected] [email protected] [email protected]

Matthias Riveiro Reto Brunner Tel: +49 69 9585-7919 Tel: +41 58 792-1419 Austria Mobile: +49 151 25665932 Mobile: +41 79 5100291 [email protected] [email protected] Agatha Kalandra Tel: +43 1 50188-2965 Simon Ström Mobile: +43 664 1830873 Tel: +49 30 2636-4984 Belgium [email protected] Mobile: +49 171 3372453 [email protected] Dries Debbaut Tel: +32 9 268-8045 Turkey Mobile: +32 497 971288 [email protected] Kivanc Emiroglu Tel: +90 212 326-6140 Kurt Cogghe Mobile: +90 542 6777581 Tel: +32 2 710-9259 [email protected] Mobile: +32 471 647748 [email protected]

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