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21 : 04 : 2017 Google : Sharing Economy : India

Mumbai, India – Google has launched a food delivery and home services app for Asia.

  • Google is experimenting with a services app that aligns it with key mobile commerce platforms in Asia
  • India’s market for mobile commerce is set to expand from £1.5bn ($2bn, €1.8bn) in 2014 to £14.8bn ($19bn, €17.6bn) by 2019, according to market research firm Zinnov
  • A huge rise in internet users and a predominantly Millennial demographic indicate that India will be a clear growth market for Sharing Economy platforms
Areo by Google, Mumbai Areo by Google, Mumbai

With functionality similar to platforms such as Deliveroo and UberEats, Areo enables users to order favourite dishes from restaurants and select options such as vegetarian dishes, but goes further by placing electricians, painters, cleaners and plumbers on its network.

Areo’s multi-functionality aligns it with powerful Asian platforms such as WeChat and Line, which successfully blend e-commerce and social media services.

Launched in Mumbai and Bangalore, widely regarded as India’s technology capital, the Google app reflects the rise of the Sharing Economy in India.

Both Airbnb and Uber have aggressive expansion plans in the region that rely on a huge rise in internet users in India and a mobile-first Millennial demographic. By the end of 2016, India was expected to have 402m internet users, more than the US and close to China, according to the Internet and Mobile Association of India. More than half of India’s population is under the age of 25.

According to a report by the EY consultancy, in India ‘the appeal of the sharing economy as a concept lies in the fact that personal asset ownership, such as of cars, is comparatively lower. The sharing economy is transforming the workforce and is making the road to entrepreneurship more accessible for many people.’

The Big Picture

Speed is of the essence. The rise of an on-demand culture driven by mega-systems such as Amazon and Uber is changing consumers’ expectations of what services should provide. For more, see our Convenience Culture market report.