Wednesday, June 19, 2024

Aussies call for sharing economy regulating body

New research conducted by Software Advice reveals that Australian consumers “overwhelmingly” feel that a regulating body is required for the sharing economy.

Following the collapse earlier this month of MilkRun and DoorDash’s DashMart, as well as the loss of competing rapid delivery businesses Deliveroo, Voly, Quicko, and Send in the Australian market last year, there appears to be broad customer worry about the sharing economy industry.

The study gathered responses from 5061 consumers in Australia, the UK, the Netherlands, France, and Germany, receiving an average of 1000 respondents from each country.

The data shows that 38% of the Australians surveyed utilise sharing economy services, accounting for the greatest proportion of consumers internationally. This is significantly more than in the UK (30%), the Netherlands (16%), France (15%), and Germany (10%).

In using sharing economy practises instead of traditional consumption, a high proportion of consumers surveyed (60%) cited using food-related services, implying that a large proportion will be impacted by the closures.

According to the study, more than 43% of respondents concerned about the sharing economy stated a clear need for a regulating environment. Only 29% of respondents who utilised sharing economy services considered this a negative due to grey areas in some businesses that the government does not regulate.

Food-related services is the fourth most cited sector (40%) that respondents think there should be “high” government regulation after accommodation (50%), education (49%) and transportation (43%).

Surprisingly, says Software Advice, over half (54%) of the surveyed Australians who expressed concern about the concept said their biggest issue was labour exploitation.

According to 82% of poll respondents, the government should make greater efforts to supervise the commercial practises of the sharing economy. The increasing volatility in the sharing economy market for grocery delivery service providers influences how consumers interact with these firms, says Software Advice. Before purchasing a product or service, two-thirds (66%) of respondents said they check to see if their consumer rights entitle them to a repair, replacement, or refund.

“The biggest advantage of sharing economy practices that include food-related services, such as food delivery services, is convenience,” says Software Advice Content Analyst Andrew Blair.

“Businesses looking to stay competitive in this area must offer their customers the convenience they are accustomed to when these services are dissolving.”

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