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Kyiv ranked second in the world in terms of the sharing economy development: what does it mean

Photo: Bolt

Photo: Bolt

Kyiv has become one of the most favorable cities for the sharing economy. Its low level of state or local regulation of sharing activities helped the capital to rank second in the rating published by the non-profit organization Consumer Choice Center.

Tallinn has become the most friendly to the sharing economy for the second consecutive year. Together with it, Tbilisi shared the first position of this year, having received a maximum of 100 points.

Kyiv scored 95 points from the compilers of the rating. Together with the Ukrainian capital, the second position was shared by Vilnius, Riga, Sao Paulo, and Warsaw.

The honorable third place with a score of 90 points was taken by Mexico City, Oslo, and Stockholm.

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Each of the 50 cities assessed by the experts could score a maximum of 100 points. The authors of the rating analyzed the cities according to the ratings of the convenience of sharing services by consumers. The following were subject to assessment:

  • taxi and delivery services;
  • rental housing services;
  • short-term car rental;
  • electric scooters;
  • sharing gyms.

In general, the cities of Eastern Europe turned out to be more supportive of the sharing economy.

Minsk, Valletta, Amsterdam, Hague, Bratislava, Ljubljana, Nicosia, Sofia, Tokyo, Athens, and Luxembourg were at the bottom of the rating. These cities have opted for overregulation over consumer interests.

Context. Trying to maintain liberal regulation of the sharing economy and, in particular, electric scooters, while encouraging their responsible use, on June 24, Kyiv City State Administration signed a Memorandum of Cooperation with operators of electric scooter rental services. This document establishes a number of rules for the use of electric scooters, such as a speed limit and a complete ban in some crowded areas of the Ukrainian capital.

The pandemic has affected many areas of economic activity. The sharing economy was not only no exception, but also one of those hit hardest. Quarantines and lockdowns around the world have led to a sharp drop in demand for sharing services. However, the sharing economy has shown outstanding adaptability to the challenges posed by the pandemic.

Uber, for example, has instructed its drivers to take selfies to prove they are wearing masks and avoiding contacts with the clients. Delivery services have changed the rules of the game during the pandemic, and this has affected their income. In the first quarter of 2020, Uber Eats revenues worldwide increased by more than 50%.

The innovative nature of the sharing economy has led to its undeniable success and, more importantly, has helped it withstand the test of the coronavirus crisis.

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