Sharing Economy
Introduction
The sharing economy, also known as collaborative consumption or peer-to-peer-based sharing, is a concept that highlights the ability — and perhaps the preference — of individuals to rent or borrow goods rather than buy and own them. The sharing economy is an economic model often defined as a peer-to-peer (P2P) based activity of acquiring, providing, or sharing access to goods and services that are facilitated by a community-based online platform.
Historical Background
The sharing economy has historical antecedents dating back to the pre-internet era, with activities such as carpooling and vacation rentals based on classified ads in newspapers or notice boards. However, the advent of the internet, and more specifically the ubiquity of smartphones, has led to a massive increase in the popularity and use of sharing economy services.
Concept and Characteristics
The sharing economy involves systems where individuals can borrow or rent assets owned by someone else. The system is usually facilitated through a community-based online platform. These systems are a hybrid market model (in-between owning and gift giving) which refers to peer-to-peer sharing of access to goods and services.
Economic Impact
The sharing economy has had a significant impact on various sectors of the economy, particularly the service sector. It has disrupted traditional business models in areas such as accommodation (Airbnb), transport (Uber), and personal services.
Regulation and Criticism
The rapid growth of the sharing economy has led to numerous legal and regulatory issues, as well as criticisms regarding its effects on workers' rights, the traditional economy, and society as a whole.
Future Trends
The future of the sharing economy is likely to be shaped by technological advancements, regulatory decisions, and societal changes. It is expected to continue to grow and evolve, potentially impacting a wide range of sectors beyond those it has already influenced.
