Huge growth expected from Millennials accustom to brands such as Airbnb
SmallCapPower | April 14, 2016: In the face of a rising population, changing consumer demographics and an overall acceleration in technological advancement, the sharing economy has proven to be a viable and hugely successful business model. Millennials, or as otherwise known as “people without money,” are the driving factor behind the acceptance towards a sharing economy of goods and services, as led by the most well-known brands such as Uber and Airbnb.
Within Canada, we are continuing to see innovation, as evident by new companies and government-led initiatives to try and capture this growth. The City of Toronto has chosen a new supplier for the city’s public bike-sharing system, buying 1,000 new bikes and building 120 new stations this year. The Toronto Parking Authority (TPA) says that this expansion is a “significant step” toward the authority’s goal of creating a world-class bike sharing system in Toronto.
On the public market side, Vancouver is bringing additional transportation innovation with the launch of an electric scoter sharing service – LOOP.
The company is hoping to complete a Reverse Takeover by LOOP of all the issued and outstanding shares of Kenna Resources Corp. (CVE:KNA), and plans to begin a pilot project in the city of Vancouver by June/July of this year.
Similar to a Car2Go concept but with electric scooters, the company hopes to attract the budget focused inner-city transportation market. We can expect the pilot to cost about $0.25 per km of travel, and compete against public transit sources.
The sharing economy has implications within many other areas. If an upfront capital expenditure to perform an activity/service is high, then expect that market to be vulnerable to technology and the sharing economy innovation.
Just ask the guys at VidWRX (CVE:VID), a company that is attempting to provide video production services to those who do not have the capital or expertise to buy their own video production equipment and shoot/edit a professional video.
To find out more about VidWRX Inc., please visit the company’s Investor Hub.
Ubika Research/SmallCapPower has received compensation from VidWRX to provide analyst research coverage. For full disclosure please visit here >