The Rapid Growth of the Sharing Economy
What exactly is the Sharing Economy?
The share economy is a rather broad term used to describe peer-to-peer exchanges of goods and services. It is largely defined by these peer-to-peer interactions occurring via an online platform or through other forms of emerging technology. Also referred to as collaborative consumption, the share economy stands out as a unique marketplace, as it allows consumers to engage in obtaining resources whilst simultaneously providing resources themselves. In its rawest form, it benefits all parties involved, as the owners can make a profit from their unused or underused assets, whilst consumers are provided with cheap goods and services, on demand. This ability to fluidly interchange the consumer/supplier role, in addition to the ease of use and increased access to goods and services, has created an economy that is ideal for the fast-paced world we find ourselves in today, and thus, it is of no surprise that it has experienced massive growth throughout recent years.
Recent Growth
A report developed by the United States Department of Commerce in June 2016, highlighted five thriving sectors of the global sharing economy: travel, car sharing, finance, staffing and streaming, stating that together, these sectors amassed a total amount of US $15 billion, with the figure projected to climb to US $335 billion by the year 2025. Not only is the economy profitable, but it also creates a space that encourages and fosters innovation. The creation of technology to facilitate the various parts of this ecosystem, such as making the listing and finding of products and services on the various platforms much easier, or streamlining payment and all other financial transactions in general, showcases this clearly.
The sharing economy is also closely linked to the access and on-demand economies, that is, those marketplaces where one can get immediate access to various goods and services. Ridesharing, Short-term rentals and peer financing services, can be seen as an amalgamation of these three economies, giving consumers access to cars or car rides, accommodations and even funding on demand.
Numerous companies have emerged in the past few years in these various sectors and have allowed the sharing economy to gain massive amounts of warranted popularity. As noted in this Forbes article, there are numerous companies that are helping to not only grow the economy, but to ensure that it progresses forward. Amongst these companies are:
- Airbnb – a service that allows persons to rent a room, apartment or even an entire house for any period of time.
- DogVacay – a platform for dog owners to find dog watchers who’ll look after their canine whilst they are away.
- Uber/Lyft – ridesharing services the enable people to access rides from anyone with a vehicle, who is in their vicinity and is apart of said platform as a registered driver.
- Lending club – a platform that facilitates the lending of cash via a peer-to-peer network. Touting better rates than several established lending institutions.
Survivability or Kindness?
Providing a buying and selling experience that is very simple and easy to use has gotten the sharing economy to where it is currently. You can have a car waiting for you outside your door with just the touch of a button, or the accommodations for your next trip all booked with a few clicks of a mouse.
Whether it emerged due to the development of an increasingly challenging economy that has forced us to revert to primal instincts and pool our resources. Or rather, due to the evolution of human nature and the adoption of truly altruistic qualities. The sharing economy is here, it is growing, and it seems like the future of business at large.