88 percent of BTN
survey respondents have used at least one sharing economy service when
traveling on behalf of their companies.
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.