Zurich Financial Services Australia Limited (Zurich) has today released the next chapter of its whitepaper Investable Megatrends, which focuses on emerging opportunities for long-term investors.
The Business of Sharing chapter explores what is commonly known as ‘the sharing economy’, and how investors can ride this fast evolving megatrend by investing in companies and industries that are anticipating and embracing its benefits.
The paper covers:
1. Car and ride sharing: the largest sector of the sharing economy, driven by the seemingly overnight success of Uber.
2. Peer-to-peer lending: also known as ‘marketplace lending’ where borrowers are matched with yield-hungry investors on an online platform.
3. Peer-to-peer accommodation: online renting platforms, which has to-date been led by hospitality disrupter Airbnb.
4. The gig economy: a reference to the freelance or contingent nature of the work undertaken by people in the sharing economy.
5. ‘As a service’ offerings: the shift by many companies to offer their core products ‘as a service’ rather than selling their products outright.
One of the paper’s authors, Zurich Investments’ Senior Investment Strategist, Patrick Noble, said the onset of the Digital Revolution has turned the sharing economy into a flourishing and formidable market-force.
“The combination of new cloud-enabled business models, widespread affordability and access to powerful mobile technology, and the diversification of today’s consumer demands, means that traditional methods of transaction and concepts of ownership are being fundamentally disrupted.
“As these business opportunities continue to grow – some at a much faster pace than some may expect – they will undoubtedly impact and shape future investment strategies,” Mr Noble said.
Table: The Business of Sharing – investable opportunities
| Trend | Sectors to watch |
| Car and ride sharing | Adapting auto manufacturers
Driverless technology companies Car and ride share companies Telematics and connected car companies |
| Peer-to-peer lending | Major banks
Financial technology start up companies Listed and private P2P lenders Asset management |
| Peer-to-peer accommodation | Hotel operator merger and acquisition activity
Vacation rental companies Online travel agents and travel aggregators |
| The gig economy | Professional search organisations
Professional networking sites Workforce composition and wage costs |
| ‘As a service’ offerings | Machinery and data as a service
IT-hardware and software Aftermarket services – impact on revenue streams Sharing in the Cloud – data centres and platforms |
Past Investable Megatrends chapters have focused on ‘Technology and the Connected Consumer’, ‘Technology and the Smart Corporate’, ‘Demographics and the Ageing World’, ‘Asia Rising’ and ‘New Power’.
