coronavirus pandemic has temporarily shuttered the U.S. economy, and it could also have long-term effects on consumer behavior, one analyst says. Specifically, the pandemic could imperil fast fashion and could also jeopardize the sharing economy, Jefferies analyst Simon Powell told Yahoo Finance’s The First Trade this week.” data-reactid=”16″ type=”text”>The coronavirus pandemic has temporarily shuttered the U.S. economy, and it could also have long-term effects on consumer behavior, one analyst says. Specifically, the pandemic could imperil fast fashion and could also jeopardize the sharing economy, Jefferies analyst Simon Powell told Yahoo Finance’s The First Trade this week.

surveyed 5,500 people across 11 countries to determine how consumers are coping amid the coronavirus crisis. According to the survey released on April 19, an “Urban Exodus” could ensue after the coronavirus ends, with city dwellers decamping for more remote locations. This implication could cause major challenges for companies like Uber (UBER) and Lyft (LYFT).” data-reactid=”17″ type=”text”>Jefferies surveyed 5,500 people across 11 countries to determine how consumers are coping amid the coronavirus crisis. According to the survey released on April 19, an “Urban Exodus” could ensue after the coronavirus ends, with city dwellers decamping for more remote locations. This implication could cause major challenges for companies like Uber (UBER) and Lyft (LYFT).

“The sharing economy, I think that’s all up for grabs, in terms of a question mark around, is that really what people want to be doing going forward?” Powell said. “They want to travel in their own cars rather than in a shared car.”

A protester wears a face mask and gloves as Uber and Lyft drivers with Rideshare Drivers United and the Transport Workers Union of America conduct a ‘caravan protest’ outside the California Labor Commissioner’s office amidst the coronavirus pandemic on April 16, 2020 in Los Angeles, California. (Photo by Mario Tama/Getty Images)

Uber and Lyft could face challenges because we’ll likely be social distancing for quite some time – and consumers could be more likely to continue staying at home since the virus could come in multiple waves, Powell noted. “People aren’t necessarily going to go back to the way they were,” Powell said. “Transport is going to definitely suffer.”

While Uber and Lyft could see upsides because people will be less likely to ride on public transportation, Powell said, they could also see downsides because people will be reluctant to share vehicles at all.

The Jefferies survey also predicted that the coronavirus and its acceleration of online shopping could “kill” fast fashion, which Powell said tends to be mostly brick and mortar. In fact, only 1 in 5 of respondents said they would go out to a physical store as soon as the coronavirus crisis subsides.

“The offline to online switch is accelerating and what this virus is likely to do is shift consumption patterns into the future towards e-commerce,” he said. 

Moreover, in the short-term consumers probably have less of a reason to buy new clothes since they’re all staying inside. “We’re all working from home,” he said, “and we’re more casual and we’re making do with the wardrobes we have.”

TwitterFacebookInstagramFlipboardLinkedIn, and reddit.” data-reactid=”35″ type=”text”>Follow Yahoo Finance on TwitterFacebookInstagramFlipboardLinkedIn, and reddit.

Find live stock market quotes and the latest business and finance news” data-reactid=”36″ type=”text”>Find live stock market quotes and the latest business and finance news

Read More