The sharing economy is a trend that is growing rapidly with every passing day and has become popular as it is contributing immensely to the growing economy. Investors have, so far as of June 2019, injected more than $23 billion in venture capital funding into startups since 2010 and have been operating on an essentially share-based model.
What is the sharing economy, and how is it changing the face of the economy?
The sharing economy has had many impacts on society, and the following sharing economy examples or instances prove just that.
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- In the year 2016, 44.8 million American adults used the sharing economy, and it was expected that it would approximately grow to 86.5 million US users by 2021.
- Airbnb, with a value of $31 million, and Uber, with a value of $72 billion, has a market cap of $103 billion if combined, and that puts them at a rank of 38th wealthiest in the world.
- McKinsey estimates that in Europe and United States alone, 162 million people, or 20% to 30% of the workforce, are providers on the sharing economy platform.
Before we get to know the benefits of the sharing economy, it is essential to briefly understand what is sharing economy is?
Detailed description
It uses technology to exchange and access goods and services between two or more parties. The underlying concept is that parties that can mutually benefit by sharing value from an asset or skill will prove to benefit both of the parties involved. This sharing of asset services usually occurs across a commonly shared marketplace, also known as a collaborative platform.
The idea is based on the concept of bartering, and some of the economic systems that fall within the purview of the system include the following types –
- Freelancing -Gig Economy
- Collaborative Economy or Collaborative Consumption
- Crowdfunding or Crowdsourcing
- Peer-to-Peer Economy
- Co-branding or Co-working
Some of the popular sharing economy companies or brands in different sectors include the following.
The figures mentioned above are as of June 2019.
Emerging technologies and technological advancements have made it easier for the sharing economy model to flourish. The fact that everyone is acquainted with the digital application of applications has made it easier and simpler to grasp the concept of sharing economy. Although it is not the same as traditional business operations, the same sector will migrate to this model as well soon.
