Consumption and providers play key position in stabilizing business progress amid COVID woes
China’s sharing economy demonstrated exceptional resilience and potential in 2021 amid the COVID-19 pandemic headwinds, with a turnover reaching 3.69 trillion yuan ($581.9 billion), up 9.2 % on a yearly foundation, in accordance with a report from the State Information Center.
The scale of direct financing for the sharing economy stood at 213.7 billion yuan in 2021, a rise of 80.3 % yr-on-yr, the report mentioned.
The sharing economy within the fields of workplace area, information expertise and life providers witnessed fast progress, with transaction quantity rising 26.2 %, 13.2 % and 5.8 % yr-on-yr, respectively.
The report additionally mentioned the market measurement of the shared lodging sector declined by 3.8 % in 2021, in contrast with the identical interval a yr earlier as a result of pandemic and the adjustment of supervisory insurance policies in some cities.
Although many brief-time period trip rental platforms have adjusted their working methods and shifted their focus to rural homestays, the nation’s shared lodging section remains to be dealing with large strain and uncertainty as pent-up demand for journey has not been totally unleashed and the brand new enterprise mannequin just isn’t mature, the SIC mentioned.
The report famous that sharing providers and consumption play an important position in stabilizing financial progress. For occasion, income from on-line meals supply platforms accounted for about 21.4 % of income within the nation’s catering business final yr, up 4.5 share factors from 2020.
Furthermore, per capita spending on meals supply platforms took up some 21.4 % of general catering expenditure in 2021, up 4.4 share factors yr-on-yr, whereas per capita expenditure on journey-hailing providers made up 8.3 % of journey consumption.
The versatile positions supplied by the sharing economy are conducive to stabilizing China’s labor market and rising employment.
Food supply platform Ele.me mentioned 1.14 million supply individuals on the platform achieved secure incomes final yr, with 1,877 of them being promoted to station and staff leaders. A complete of 10,203 supply workers obtained vocational coaching from the platform final yr, it mentioned.
The report mentioned competitors within the sharing economy is about to accentuate and the business sample will reshuffle. In addition, a sequence of insurance policies and measures have been launched to strengthen the safety of staff’ due rights and pursuits within the versatile employment technique, and supervision and regulation enforcement have been strengthened to additional regulate market order.
Zhou Guangsu, an affiliate professor with the School of Labor and Human Resources at Renmin University of China in Beijing, mentioned the platform-based mostly economy has not solely stimulated the expansion of consumption, but in addition promoted its improve, which has injected extra vitality into the economy and boosted employment.
Meanwhile, sharing economy platforms are dealing with potential dangers and challenges in knowledge leakage and knowledge misuse and they need to improve their compliance stage in knowledge administration, the report added.