An alarming trend that has already established itself in the cities of the world is the digitization and commercialization of basic services. The rapid rise of the gig economy, also known as the shared economy—of low demand and collaborative consumption—and its relationship to goods and services is changing major city metropolitan areas, but not necessarily for the better.
Countless a la carte offerings are spreading in the world’s capitals, causing drastic changes in the fundamental sectors of the economy and introducing new needs and conveniences. This digitization ranges from transport, logistics, cleaning services, food and drink, shopping, care and nursing services to accommodation and personal concierge. The Internet has opened up a new paradigm where a specific need can be met almost instantly by mobile technology. The network allows us to connect with thousands of people who offer them. And in this sense, digital platforms (mainly in the form of applications) are sold as enablers of exchange and make this relationship between peers more responsible.
The consolidation of these platforms in the urban environment makes us think about what kind of cities we want in terms of access, rights and urban planning
The growth and popularity of various companies such as Uber, Amazon or Airbnb have not only changed the way of life of the inhabitants – or rather consumers – but also the functioning of modern cities, since they have developed in a way that nobody could have foreseen . For example, the British capital is already seeing the disappearance of physical facilities, bank branches or even the removal of safe deposit boxes from most public transport stops. In fact, there are already store fronts on several high streets where the customer is invited to come in, look around and then buy the product online. In addition, many companies only accept digital payment and do not accept cash.
Uber could undoubtedly be one of the biggest exponents of this type of on-demand economy, with tremendously aggressive policies in cities. Its most controversial version, UberPop, has been banned in at least eight countries, including Denmark, Hungary, Bulgaria, Turkey and partially Italy. In these places, the people offering the service do not need a license to rent a vehicle with a driver.
The growth of companies like Uber, Amazon or Airbnb has not only changed the way people live, but also how modern cities function
In fact, the term Uberization is also an alternative name to explain this economy-on-demand phenomenon. In London, for example, Uber has already taken control of sea and road transport, building partnerships with other companies, transport companies and neighborhoods to bring electric chargers to the streets. But the most surprising thing is that this company’s annual growth is estimated to be 300%, despite the fact that the Uber papers came to light. That document, released in July, documented the company’s ties to various political leaders, the promotion of violence to be present in the markets and the blocking of investigations.
Platforms like Airbnb, which offers private accommodation, also continue to grow. In 2011, the company announced that it had reached one million reservations. In 2014 they were already talking about getting 11 million. Today, the company has reached an estimated 37 million bookings per year. The most worrying thing is that this data is just the tip of the iceberg as the way society works, plays, travels and behaves with others will change more and more without considering the impact these business models have on them both in the city and in society.
There are many testimonials from workers at these tech companies who say that despite appreciating the flexible working hours offered to them, they are hampered by low wages, fears for their personal safety and well-being, feelings of isolation, and the lack of a viable career path. It is clear that many consumers are unaware of what it means to enjoy this new à la carte convenience.
The way society works, plays, travels and relates will increasingly change
The phenomenon of ghost supermarkets, also known as dark stores, is another example of this digitalization of basic services in an urban context. These facilities not only damage the city’s image, but also create many problems in the immediate vicinity; not only because of the noise, but also because of the constant movement of delivery men and daily vans, the increase in waste and residues on the street. They are spaces not open to the public that act as warehouses – or supermarkets behind closed doors – that house almost 2,000 products, controlled by different companies such as Getir, Gorillas, Glovo or GoPuff, and deliver anywhere in the city in less than 15 minutes via the relevant mobile application. Strict measures have already been taken to regulate them in the cities of Amsterdam, Rotterdam or New York, as well as in Madrid and Barcelona, where regulations banning new openings are already being presented.
But what additional measures should municipalities, municipalities and federal states take in the face of this increase? With the rise of these types of platforms, it is imperative that governments put in place a regulatory regime for these companies to ensure not only a better coexistence in the city, but also an improvement in wages and conditions for workers, at least by recognizing them as Employee. In a way, the consolidation of these digital platforms in the urban environment is making us think about what kind of cities we want in terms of equitable access to services, labor rights, urban planning, and the infrastructure to support this new economy.
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