Sharing Economy Influencing Home Ownership, Tax Structures & Insurance Coverages
Correcting the tax treatment of sharing economy businesses will not be as simple as announcing a rule change. Rules for registration and compliance must change too, with simplification as the goal. There is a strong argument that hotel VAT is too high for everyone. The current system, however, is unfair. It is time to start changing it.
Insurance coverage emerged as a major issue in the sharing economy. The ride-hailing app Uber announced an exclusive deal earlier this year with Intact Insurance. And now drivers for startup RideCo, both a ride hailing and ride sharing app, are covered by Northbridge Insurance of Toronto and the coverage is automatic and begins the moment a driver signs onto the RideCo. Platform.
If the sharing economy with collaborative consumption expands, the on-demand model continues to grow, and the pay-as-you-use model continues to create innovative options, then it has long-term, dramatic insurance implications — and almost all of them are positive when looked at in the light of InsurTech advancements. Here’s a brief on what usage-based insurance will mean to consumers, what it will do for insurers and how insurers need to prepare their enterprises to take advantage of it.
A research note from CBRE on innovative sectors’ leasing trends said that China’s small enterprises and startups are favoring co-work spaces because their cost is “lower” and their atmosphere appeals to young talent, particularly those working in the TMT (technology, media and telecommunication) space. Companies from different fields such as real estate (UR Work, Soho 3Q), hospitality (Naked Hub which owns several resorts and hotel sites), and media (KrSpace) have entered the co-work space market and expanded quickly. That’s not all. Foreign brands in this segment like WeWork from the US are trying to meet China’s rising demand for co-work spaces.
The success of startups in recent years has always seemed to have some geographic connection to a hotbed of entrepreneurial activity comprised of eager young guys with the next best idea. However, the scene is now changing and the online environment is proving that anyone out there, regardless of his or her location — and gender — can live the entrepreneurial dream. One of these new entrepreneurs is Robin Smith, founder and CEO of WeGoLook, a company of more than 30,000 on-demand field service agents (known as “Lookers”). The Lookers perform inspections and tasks for insurance, financial services, auto and fleet inspections, heavy equipment verifications and more across the United States, the United Kingdom, Canada and Australia.
Hammerson, the UK’s leading retail property specialist, reveals findings of its latest consumer research, undertaken in conjunction with retail consultant, Verdict, the research looks into millennials’ shopping habits, identifying how attitudes towards home ownership and the sharing economy are influencing purchasing decisions, and how social media and the latest technologies are informing the ways in which young people research and select products. With the prospect of home ownership moving further away from young people, the growing sophistication of the sharing economy has particularly influenced millennials’ attitudes to ownership in general.