Sharing Economy Is More Than Uber, Lyft & Airbnb

Travel buyers and policy managers have sharing economy on the brain. The questions go something like this: “Is Uber safe?” “Can I or should I prevent travelers from accessing Airbnb?” “Is my expense reimbursement policy in line with my travel policy on Lyft?” And, finally, “If I close my eyes, will this all go away?”

The answer to that last question is certain. No, sharing economy vendors are not going away. And because that is the case, corporations will need to figure out the answers to those other questions—and likely a lot more.

Most travel buyers are grappling with how to approach alternatives to their traditional suppliers—mainly, hotel and ground transportation. But the sharing economy, a term whose meaning has widened to include on-demand services, offers a much broader marketplace for business travelers. In February, Business Travel News asked travelers who log at least four annual business trips what common sharing economy services they use while on the road. Their answers went beyond Uber, Lyft and Airbnb to food delivery services like GrubHub and Eat24 and laundry services like Washio.

A recent report from expense firm Certify noted a similar trend, with a variety of sharing economy suppliers dotting business travel expense reports. “Elsewhere in the sharing economy, companies like WeWork, GrubHub, DoorDash, Shyp and countless others are lining up to attend to the every need of the lucrative corporate travel market. These services and many more like them have also appeared in Certify SpendSmart data, but not yet at a level that would indicate a growing trend or disruption on the horizon,” the report stated.

One area Certify will continue to monitor closely is meals. “As the number one most expensed travel and entertainment category for all businesses, breakfast, lunch and dinner present a rich opportunity for any new service that can crack the code beyond the currently available dining delivery apps and options.”

The BTN survey showed that sharing economy meal delivery services trailed the use of ridesharing services like Uber and Lyft, but not by a huge amount. More than half of active business travelers used a service like GrubHub, Eat24 or Postmates. After the survey ended, Uber rolled out UberEATS in Chicago, Houston, Los Angeles and San Francisco in March, and it’s expanding to Atlanta, Austin, Dallas, New York, Seattle, Paris and Melbourne, Australia, giving the category some strategic and technological muscle.

Convenience costs can add up, though. A Jan. 11 Forbes article did a quick accounting on the marginal cost of sharing economy food delivery. Contributor Bijan Khosravi wrote: “The food part of the bill was $32. [My son] was charged 9 percent service fee, plus $6.50 for delivery fee, and then a 20 percent tip on top of the entire bill. Meaning, he paid $49.86 for $32 worth of food.” The writer opined that the marginal convenience was not worth the cost and that while many people can’t afford it, more simply won’t pay for it.

Some might argue, however, that business travelers are less cost sensitive because they ultimately don’t have to pay the fees themselves. That may be why corporate travel has become a prime target for these convenience services, and it’s where policy and behavior management come into the picture. Of course, companies have to weigh the benefit of the convenience against traveler productivity and business success.

The fact that Certify hasn’t seen meal delivery services surge on expense reports may reflect travelers’ reticence to report this type of service—or that such expenses have been rejected. BTN survey respondents reported that the meal delivery category was the toughest sharing economy service to justify to their companies. Of those who had used food delivery services, 36 percent were challenged on reimbursement. That’s a 40 percent increase in reimbursement challenges compared with all other categories except home/apartment sharing services.

Meal delivery is just one example to watch for, but it’s an interesting one. Local parcel delivery and quick-turn laundry services also cater to business travelers. These are ancillary spend categories for sure, but it’s worth considering how they fit into an overall travel policy given that niche sharing economy markets are expanding. It’s not just cars and apartments anymore.