by Tetsuya Choda, Senior Associate Researcher
(The original article in Japanese was posted in December 2021)

While COVID-19 crisis is continuing from the preceding year, people are seen going out more in 2021 and there are signs of recovery to life before the pandemic. Meanwhile, some of the good changes in behavior pattern spurred by the pandemic situation, which have increased convenience in people’s lives, is likely to remain. One of such changes is the use of sharing economy services. This article covers one of the sharing economies that has grown in particular: Skillsharing services.

Sharing economy is an economic model where people share and use all kinds of goods, spaces, and services by means of the Internet, and pay for use instead of for purchase (ownership). Before the pandemic, car sharing might have been the only service that recalls such type of services. Because of the new business form that is unfamiliar for most people, although the recognition has been increasing gradually, use of services did not grow accordingly. The sluggish market growth is a critical issue for the sharing services industry.

However, it is fair to say that COVID-19 crisis spurred the momentum for the market. While people have been forced to stay home and change their behavior patterns for private life and work, the situation unveiled new needs for the use of sharing economy services. While most of the sharing economy services are relatively new that made appearance after 2010, and often involve online platform that connects users and providers from registration to actual use of service, the increase of people’s time spent on Internet during the voluntary lockdown augmented the use of sharing economy services.

The changes in behavior patterns have driven the growth of sharing economies significantly, particularly in the field known as skillsharing. Skillsharing is primarily provided C2C (provided by a consumer for a consumer) where individuals offer their talent and expertise. The skillsharing services include platforms for online work-sharing, talent-sharing, as well as marketplaces for individuals to learn or teach a new skill.

Until the outbreak of the pandemic, despite their web-based platforms, sharing economy services often involved offline activities, such as outsourcing service that starts with an in-person prep meeting and learning course that provides sessions face-to-face, etc., which required additional time and costs. Nonetheless, as the penetration of video conferencing system during the pandemic period swept away concerns over communication through a screen, skillsharing services also adopted video conferencing systems to switch the prep meetings from offline to online and start live-streaming for learning classes. Having everything available online, the services increased convenience dramatically.

In addition, as it gathers attention not only among people who lost their jobs during the pandemic, but also among people who seek for stability through earning extra income by getting a second job or juggling multiple jobs on the skillsharing service platform the demand for skillsharing service is increasing further.

Owing to its convenience, web conferencing systems are likely to remain as one of the universal communication tools even when the pandemic ends. Accordingly, remote working styles are here to stay, and shortened commuting hours may create spare time. The situation continues to create demands for starting a second job/multiple jobs. Besides, the handiness of the skillsharing service as a platform to start a second job/multiple jobs casually will multiply the demand for skillsharing services. Gaining a recognition as a means to enrich people's lives in the face of COVID-19, the use of skillsharing services is expected to increase hereafter.

The pandemic-induced behavior changes that led to the shift in how people perceive skillsharing services is presenting an unprecedented opportunity for the skillsharing service market to grow. Unless service providers make the most of this opportunity to stimulate demand and make skillsharing services a more essential part of people's lives, the rise in demand will end up as a one-off special demand. To seize the opportunity, service providers need to prioritize hand-in-hand cooperation for the time being to make the services widely known. As the market researcher of this field, I would like to contribute to the development of the skillsharing market through a continued effort to follow up on the trends of market players and publicizing their initiatives.

Reference: “Subscription Service Market 2021”, published in March 2021 (by Yano Research Institute).