A few weeks ago NSW declared Airbnb illegal, causing many users to take to Twitter, sharing their frustrations using the hashtag #Airbnbshame.
They felt that the platform is not doing enough to protect its users by refusing refunds under its new “extenuating circumstances” coronavirus policy, which only applies to China, Italy and South Korea.
That’s not the only story. Restaurant owners who are still in operation in Melbourne and around the world are struggling with the 35% commission fee applied from Ubereats and Deliveroo. “Something must change after this. They’re taking advantage of the situation and it’s making less sense for us to stay open when we can only deliver but a huge 35% of earnings is taken off every order” said the co-founder of Chilli India, Melbourne Central, Gowtham.
History repeats itself. So you might want to pay close attention.
One thing's for sure is that after major events, customers will remember how businesses reacted during crisis - when they needed them most.
Right now businesses need to show their values as a company by offering support and empathy. Take a short loss now for long term gain rather than trying to take advantage of the situation.
We have all seen it. Before a recession, business models change and new winners arise. Columbia Pictures birthed Hollywood's current business model during the Great Depression. The gig economy including the likes of Airbnb and Uber sprouted out after the major 2008 financial crisis.
What will this downturn bring?
Delivery services, eCommerce and mobile apps in particular Telehealth like Sicky are now the most popular in the medical apps category. Sicky is a free-to-download app that connects users to a health professional for assessment via video call.
Businesses like Chilli India is working on a rewards program to encourage customer loyalty instead of only appealing to discount seekers with one-time offers. By offering discounts to returning customers, Gowtham says he hopes to "grow a group of takeaway regulars and pivot marketing strategies from relying on foot traffic and one-time offers."
An export platform like uXport can provide a one-stop directory for exporters and importers to be on the global stage instead of the traditional exhibitions and conferences. This will provide much-needed exposure and assistance for local businesses to expand internationally.
Another ground-breaking platform we see popping up is Bricklet, a fragmentation property platform that allows buyers to own (on paper) a fraction of a property.
Tying it all together
The current situation has shaken up a lot of industries and, surely, we will come out it without a few big names and many smaller ones.
Our priorities are getting reshuffled and our basic needs brought to our attention. People are shopping local to meet their basic needs while practising social isolation. The Mo Works team and I are looking forward to a healthier, simpler and a stronger world.
Lastly, if you are looking to future-proof your business, chat with us. We might just have the idea you're looking for.