According to the South China Morning Post , just not long ago, shared karaoke rooms in Shenzhen (China) were packed with customers on weekends. Just scan the QR code affixed to the door, young groups can enter the closet and sing their favorite songs for a few hours.

But the situation changed after the outbreak of Covid-19. “Now they are almost completely vacant. I do not want to use them anymore. Mic, screen and chair, nobody knows who has touched them before, "said banker Liu, 28.

"Nobody wants to touch anything that can infect the virus themselves," Liu said.

The shared economy was once considered an integral part of China’s economic structure. For many young people, owning a home or car is no longer a prerequisite for everyday life.

Why must you buy when you can hire them? So, many people turn to sharing platforms such as Airbnb sharing house, ride-hailing company Didi Chuxing and Mobike bike rental.

Do not dare to use karaoke rooms, massage chairs

According to a report by the China National Information Center, in 2019 the sharing economy of the country reached 3,280 billion yuan ( 460 billion USD ) with 800 million users and workers and 78 million service providers. related.

Chinese startups offer a service that shares everything from phone chargers, massage chairs, bicycles, cars, to vanity counters in restaurants, shopping malls and subway stations.

Now, unused bicycles are scattered on the street, no one dares to use massage chairs, consumers turn to online shopping instead of to shopping centers.

After weeks of blockade and implementation of a social quarantine measure to prevent virus outbreaks, many people wonder whether China’s shared economy could return to its former heyday.

“The sharing economy needs users and as‌sets to interact, share and circulate. It integrates online and offline, ”said Professor Wang Jianming at Zhejiang University of Finance and Economics.

Massage chair sharing service at the business center. Photo: South China Morning Post.

“However, most shared economic businesses rely heavily on offline consumption. They are all heavily affected by the need to socialize, ”he added.

Complying with the social isolation requirements of local authorities, on February 14, the karaoke room sharing company UCM-Bar announced the suspension of its operations in 31 provinces. By the end of April, a number of shared karaoke rooms had not been reopened because of local regulations.

Capital based on the operation of restaurants, railway stations, hotels and shops, businesses that share phone chargers are also severely affected.

Habits change

“Our business depends heavily on restaurants and shops. A large number of restaurants are unable to return to operation. This has a big impact on our business, ”said Tang Yongbo, CEO of Xiaodian, a company that shares phone chargers.

He acknowledged that Xiaodian had "run out of battery" because of falling sales, cost pressures, increased supply chains and housing issues in some cities due to the pandemic.

Larger companies also cannot avoid the impact of a pandemic. QuestMobile data shows that the number of daily users of the ride-hailing giant Didi during the 2020 Chinese New Year holiday fell 59.7% year-on-year to 5.73 million.

During the same period, car service sales also dropped to 580 million yuan ( $ 82 million ) a day. The number of bookings on China’s Airbnb platform in February and March dropped by 90% compared to the same period last year, according to Bloomberg .

Tujia online accommodation sharing platform, meanwhile, had to lay off 800 people, or 40% of the total staff, according to The Beijing News.

Hygiene becomes a top priority for post-pandemic users. Photo: Xinhua .

After the outbreak of the Covid-19 epidemic, the Chinese government introduced policies to restore consumption. Bookings at Airbnb increased by 200% compared to the previous month, 99% of landlords were willing to enter the short-term rental market once the epidemic was under control.

Talking to CNBC , Chairman Didi Jean Liu revealed that the number of car calls recovered about 60-70% compared to the time before the outbreak and was 5 times higher than the record low in February. hel‌lobike bikes also confirmed the number of trips increased after the blockade order was lifted.

However, some experts warn that consumer behavior has changed because of Covid-19. “After experiencing an international crisis, users will be wary of items that have been used by others. This is a big challenge for sharing businesses, ”said Zhang Yi, an expert at iiMedia Research (Beijing).

Critical strike

Car, house and shared karaoke booths are all places with high potential for spreading infectious diseases. “A pandemic makes sanitation a top priority for consumers. Now, they prefer safer, healthier and more responsible products and services, "commented Professor Wang.

Users do not want to interact with many people, reduce unnecessary and shared entertainment services . Pandemics change profound consumer behavior, even permanently, ”he emphasized.

Facemasks, latex gloves, antiseptic alcohol and even raincoats are now essential needs for many people. “Before the pandemic happens, users will use sharing services because they are very convenient and low-cost. But after the pandemic, safety and hygiene are their top concerns, ”said Zhang Yi at iiMedia.

“The sharing economy has been a driving force for China’s development in recent years. It helps optimize the use, allocate idle resources and bring convenience to consumers. However, the pandemic will remove many smaller players from the game, ”said Mr. Wang.

In fact, China’s shared economy was shaken before the pandemic struck. In 2019, investment fell 52.1% over the same period last year, according to the Sharing Economic Development Report 2020. The reason is that investors take a closer look at the sustainability of the models. trading when the global economy weakens.

Millions of shared bicycles are abandoned. Photo: Reuters .

China’s bicycle-sharing industry is aggressively spending money on mass-producing bicycles. However, shared bicycles were scattered in the streets, prompting local authorities to tighten control regulations. This resulted in millions of cars being left empty, polluting the city.

The tech taxi sector was also affected by safety issues after two of Didi’s female passengers were raped and killed by a driver.

However, the crisis caused by the Covid-19 epidemic and home consumption habits pushed many sharing economic companies to the brink. According to the China Economic Development Report, the overall economic growth rate is expected to decrease from 41.6% in 2018 and 11.6% in 2019 to 8-10% in 2020.

The fight is still going on

"The fight against pandemic is still ongoing, the overall impact on the economy has not been fully revealed," said Yu Fengxia, deputy director of the Center for Economic Research.

Many sharing companies are beginning to shift their focus to other areas. Wei Dong, CEO of ride-hailing company Shouqi, revealed that he used the idle car and driver to deliver goods, partnering with food delivery platform Meituan and Alibaba’s Freshippo supermarket chain.

Freshippo also introduced a staff-sharing plan, hiring employees from restaurants, hotels, and cinemas to arrange packing or packing.

However, life never returns to normal for consumers. A loyal user of the bike-sharing brand Mobike for many years, 23-year-old Zhai Xiaoyan has just bought his first bicycle.

“In the beginning, I also had some problems. My friends complained about having to walk with me to find parking and lock bikes. They tease me as old-fashioned. However, it is more secure and evokes a bit of nostalgia, ”Zhai said.