Start-ups emerge to support ‘sharing economy’ firms

SINGAPORE — As the concept of the sharing economy gains greater momentum with the increasing number of disruptive firms such as Airbnb and Uber making waves here and globally, a generation of start-ups offering support services to better the sharing experience has emerged.

One that has landed on Singapore’s shores is GuestReady, a company that provides a suite of services — such as cleaning, laundry as well as check-ins and check-outs — to homeowners who lease out their properties on short-term rental sites.

The start-up is looking to capitalise on the increasing popularity of Airbnb and HomeAway, joining the likes of homegrown Igloohome, which developed a smart lock system to allow guests to access their hosts’ homes without physical keys, eliminating the need for hosts to be present when their guests arrive and leave.

This comes as listings on Airbnb continue to grow in Singapore, doubling to nearly 7,000 between early 2015 and today, according to data from analytics firm Airdna, which tracks Airbnb rentals.

Ms Tan Wen Dee, co-founder and managing director of GuestReady Malaysia and Singapore, told TODAY that the idea for the company was born after she and the co-founders — all of whom are avid travellers — were left disappointed with their short-term rental experiences on some trips.

“Many times we were disappointed by either the listing, the host, or the service provided. The experience was simply not on par with that of a hotel,” said Ms Tan. “Hence, the idea to professionalise the short-term rental industry was born: Keep the unique aspects of Airbnb, but provide hotel-like services.

“Singapore has always been the top destination for business, tourism and medical-related travel in South-east Asia … We see this trend as the big opportunity for GuestReady.”

Ms Tan is part of the GuestReady founding team made up of former executives at Rocket Internet ventures such as Zalora, Foodpanda, Kaymu and Wimdu.

The start-up is backed by Switzerland’s Swiss Founders Fund with an undisclosed sum, and launched in Singapore, Kuala Lumpur, Hong Kong, London, Paris and Amsterdam last Tuesday.

Modelled after a traditional property management firm but focused on the short-term rental segment, the start-up also helps hosts manage their listings.

Customers can choose from a suite of packaged or standalone services, with charges ranging from a percentage of booking revenue or an agreed amount for guaranteed monthly income.

With the sharing economy pie set to grow globally, new and innovative business ideas such as those from GuestReady will continue to emerge to disrupt the traditional ways of doing business, noted Mr Greg Unsworth, digital business leader at PricewaterhouseCoopers (PwC) Singapore.

A PwC research report projected that the five key sectors of the sharing economy — travel, car sharing, finance, staffing, as well as music and video streaming — have the potential to increase global revenues from roughly US$15 billion (S$20.2 billion) to about US$335 billion by 2025.

Singapore is expected to mirror global trends, given its high penetration of technology and smart devices; its dense population also allows unutilised resources to be better shared.

“In a city-type environment where it’s very condensed and people have busy working hours, I think there are a lot of opportunities to come up with those convenient-type services to support people’s busy lives,” Mr Unsworth said.

“Some of the more interesting ones we’ve seen are things like dog-walking services, for example.”

The pace at which such new services are gaining ground with consumers has also left regulators around the world struggling to keep their regulations up to date.

“(The sharing economy) can help to boost economic growth, though many countries around the world are playing catch-up in terms of developing the appropriate regulatory framework,” said Mr Lyon Poh, head of digital + innovation at KPMG in Singapore.

“To regulate businesses in the sharing economy, other factors that governments worldwide have to consider include social tension, tax rules and the impact on existing businesses.”

Cities such as Amsterdam, Seoul and London have often been lauded as pioneers in regulating the sharing economy.

In Singapore, laws were also passed to regulate third-party taxi-booking services and private car-hire drivers operating under apps such as Uber and Grab.

However, rules on short-term rentals are relatively unclear, with the Housing and Development Board prohibiting rentals for less than six months, while the Urban Redevelopment Authority’s (URA) guidelines state that private residences are meant for longer-term stays of six months or more.

A public consultation to gather feedback on whether private homes should be allowed for shorter-term stays concluded with no clear consensus.

Even then, GuestReady’s Ms Tan said Singapore will still be a good market for the company, notwithstanding the fact that Airbnb has sunk roots here by setting up their Asia-Pacific hub.

“The sharing economy in Singapore is on the highest level in history … Singaporeans are one of the earliest adopters when it comes to new technology in South-east Asia, and the Singapore Government is one of the most forward-thinking governments when it comes to new technology,” she said.