The objective of this study is to examine the effect of the Covid-19 on sharing economy activities. These effects are contradictory. On the one hand the impact of lockdown restrictions has mostly affected a lot of sectors of the sharing economy adversely and for them the problems of reducing incomes and employment have become relevant. On the other hand the sectors that are booming during pandemic thus the sharing economy platforms and government have opportunities to invest in these sectors to jump-start the economy. The Covid-19 has brought some positive outcomes, however, in that it has compelled various stakeholders to improve their sharing services and develop them into a mature industry. The study shows how the sharing economy is coping with the changing environment caused by the Covid-19 from the perspective of firms, service providers, service customers, and regulatory bodies.