Four Ways to Profit from This Recovering Sector
Dear Rich Lifer,
Forbes is calling this sector a “…goldmine for those who want to save money, make money, and create new life experiences along the way.”
Researchers around the world believe this could be one of the hidden economic opportunities of COVID-19.
If you haven’t guessed, we’re talking about the sharing economy.
Before the pandemic, the sharing economy was growing at a staggering rate. It was estimated that by 2025, the sharing economy would reach $335 billion.
Then COVID-19 happened and shattered the entire economic system. Some experts even speculated this could spell the end to this burgeoning sector.
Hospitality and transportation services were hit the hardest due to travel restrictions. Airbnb saw revenues plummet by 50%.
Uber, the most used service in the sharing economy, saw massive declines in demand.
And Lyft, another ride-hailing service, experienced the same downward spiral in rides and revenues.
But the pandemic also created new opportunities. As several countries around the world went into lockdown, platforms used for online shopping and food delivery saw massive spikes in revenue and users.
With cinemas closed, video streaming services like Netflix, Amazon Prime, and Disney+ became the go-to entertainment hubs for most people restrained to their house.
That massive shift in wealth you’re hearing about… Well, this is part of it.
And the best part is you can profit from it if you know where to look.
The Sharing Economy 2.0
When most people think of the sharing economy, they think of Uber and Airbnb.
But you don’t have to drive around drunk college students or rent out your home to strangers to make a little extra spending money.
Nowadays there are several ways you can profit from the sharing economy without having to leave the comfort of your home. And most services can be managed through just a smartphone.
Here are four of our favorite ways to make extra cash through the new sharing economy.
Ruck-a-what? Ruckify is one example of a platform that fully embraces the new sharing economy.
Through Ruckify you can rent not just a house or car, but anything from anyone in your area.
Going snowshoeing this weekend but don’t have a pair of snowshoes? Most likely someone on Ruckify will have you covered for a small daily fee.
Do you have any old tools or sports equipment collecting dust in your garage that could be rented out to someone in need?
Check out Ruckify’s marketplace to see what things people are renting in your neighborhood and for how much. You might be surprised at how much you can make without having to do any real hard work.
Remember the old ads “Avis is only no. 2 in rental cars. So why go with us?” Well, why go with a rental car company at all now?
With platforms like Turo, the largest car sharing marketplace in the world, you not only can rent an awesome vehicle for less than traditional car rental companies, but you can rent out your own vehicle when you’re not driving it.
Imagine having someone else pay off your new car loan.
But are platforms like Turo safe?
According to the Turo website, you’re covered up to $750,000 in liability insurance, and your car is contractually protected against theft and physical damage.
Turo also says they screen each guest, so you can be confident when you hand over your keys. And they offer a 24-hour emergency line to their customer support team.
Investing in the stock market can be risky, especially in a shaky economy like this. But investing in other people can also be unpredictable.
So, it’s a toss up. But we really like peer-to-peer lending platforms like Prosper because they offer investors a different way to grow their money. P2P lending got its start during the credit crisis when banks refused to give out loans.
Today, you can invest your money through platforms like Prosper where you can own loans and finance purchases for other people. Depending on your terms and the amount you’re lending, interest can range from 5%-20%. Prosper says historical returns average 5.4%.
Of course, there’s the risk that the loans you buy don’t get paid on time or at all. But it’s a risk worth taking if it won’t cripple you financially.
Do you like the concept of Airbnb but not the idea of a stranger sleeping in your house? In the new sharing economy and through platforms like Neighbor, you can rent our space in your house for storage instead of accommodations.
Maybe you have an unfinished basement that’s large enough to store a few extra boxes, why not offer the space to someone for a fair price?
Or perhaps you have a two car garage but only one vehicle. Renting out your unused space can bring in hundreds to thousands of dollars a year. If the space is going unused anyway, why not profit from it?
Check out Neighbor’s website to find out how much your extra space is worth in your area. Plus, you can list your vacant space for free on Neighbor’s app, so even if you’re just curious as to what you might be able to make, it will cost you nothing.
Pandemics are known to bring economic misery and the current pandemic is no exception. But the COVID-19 pandemic has created some new opportunities for the sharing economy. Don’t miss out on riding this new wave of a soon-to-be thriving again sector.
To a richer life,
The Rich Life Roadmap Team