It appears to be a lucrative time in the on-demand world.
Companies like Uber, Lyft, Airbnb, WeWork and TaskRabbit are expected to keep gaining users and bring in more money.
Revenue from the on-demand economy is expected to double by 2022, according to a new study by market research firm Juniper Research. The company forecasts that this sector will reach $40.2 billion in the next five years. Currently on-demand economy revenues are at $18.6 billion. Juniper calculates these valuations based on revenue estimates.
On-demand rides, like Uber and Lyft, and on-demand house rentals, like Airbnb, didn't even exist 10 years ago. But today, they're ubiquitous. Uber is now in more than 80 countries and is valued at $68 billion, which makes it the highest valued venture-backed company in the world. Airbnb, is in now in nearly every country on Earth and has more than 3 million listings worldwide.
"Juniper forecasts that 5.3 million properties will be rented out for residential stays in 2017, with Airbnb naming US, France and UK as major markets," the study's authors wrote.
While on-demand companies are on the rise, Juniper noted that not everything is smooth running. With Airbnb, some travelers' bookings get canceled at the last minute leaving them in the lurch; while at the same time, some property owners' homes get damaged. And with Uber, its aggressive tactics have led to disputes with drivers, regulators and competitors, such as the taxi industry.
"Uber has dropped its pricing in many cities, leaving drivers in a situation where they are earning below the minimum wage," the study reads. "Juniper believes it is likely that Uber drivers will seek to take part in other activities to make ends meet and there has already been a shift in drivers from the service in the US to rival Lyft."
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