Why sharing economy is the best business model?

Sharing Economy is an economic model that focuses on sharing the already available resources rather than buying resources every time. Sharing takes place between peers who are linked via an online network, free or in exchange for a fee.

What is sharing economy?

Tom Goodwin once said: Uber, the world’s largest taxi company, owns no vehicles. Facebook, the world’s most popular media owner, creates no content. Alibaba, the most valuable retailer, has no inventory. And Airbnb, the world’s largest accommodation provider, owns no real estate. Something interesting is happening.”
In the traditional economic perspective, you would think of buying a car when you are looking to solve your transport problem, or, you would want to invest in a drill machine if you need to hang a photo frame on the wall.

But with the sharing economy, a group of people own the products and lend them out to those who are in need. An owner of one product may be the borrower of another and vice versa.

 

How to make money in the sharing economy?

Sharing Economy essentially refers to a monetized form of sharing where both the peer parties are benefitted. On one hand the consumer gets to pay less to meet his needs and on the other hand, the provider gets to use his idle resources to earn some extra money.

In the Shared Economy, you don’t need to own a car in order to go places, you can rather share a ride or borrow a car from a peer who is willing to rent it out in exchange for a fee. Or, you don’t have to buy that drill machine paying the full amount for a small task, you can simply borrow it from a peer for a certain time in exchange for a small fee.

In the sharing economy, providers and borrowers are often connected through some type of online platform. They find each other and agree to borrow or lend a certain product or service for a certain price which is essentially less than the buying cost of the resource.

                                                              Washington State University

 

Sharing economy examples

sharing service examples

 

Image source:www.freepik.com

Here are some examples of sharing economy platforms focusing on some essential resources.

Rideshare/ Carpool

shred mobility

source:Photo by nextbike on Unsplash

From ridesharing to helicopter ride, shared services made transportation easier and cheaper than ever. Public and private mobility is evolving as new ideas and solutions are arriving at a great pace. Sharing mobility is less costly, convenient, environment friendly and also reduces traffic congestion. Uber, Lyft, Blablacar as ridesharing platforms there are other’s like VIA, StreetCrowd with different view of safe mobility solutions. Ofo, Spinlister, Skip, Spin for shared bicycle and scooter. Getmyboat, Tubber for boat rent and many more other mobility options.

Accomodation

 

Apartment/ house renting and sharing platforms creates opportunities to find out cheapest to luxurious options anywhere. Airbnb, CouchSurfing, Flipkey, Booking.com, Badi etc are some of the solutions for large range accommodation services worldwide where you can rent a hotel, resort or stay in another’s house. Also Peerspace for event spaces or even camping options like Camp in my Garden and so on.

Coworking Space

co-working space

Source:Photo by Shridhar Gupta on Unsplash

Coworking spaces reduce the cost of office space storage to professionals by sharing with others who don’t have a large business or need a temporary space. Wework, HubbleHq, LiquidSpace, Co-work such platforms offer spaces for freelancers, tech startups to any kind of working environment you need with different time spans and flexibility.

Finance

Community banking, crowdfunding, peer to peer lending, such ideas introduce new investment strategies and modes of banking. Cashshare community bank offers crowdlending, P2P lending. Future Planet Capital funds entrepreneurs and businesses addressing the world’s most pressing issues in Climate Change, Education, Health, Sustainable Growth, and Security profitably. Swiftcourt, ShareCollab, Stripe, Prestamena, Panal de ideas, Vaquinhasocial and others work to connect investors with entrepreneurs, individuals with individuals, artists, researchers, communities to build a better ecology of producing and consuming.

Learning

 

Knowledge sharing and learning has become very easy with services that enables individuals to connect with each other or with such platforms. Everyone can help others with their expertise at the same time earn money. Khan Academy, Udemy, Tutellus and others changed the perspective of learning outside the academic framework. These platforms inspired millions of students, teachers and individuals to learn, share knowledge on a massive scale.

Technology

Sharing economy flourished as a result of technological development at the same time it accelerated these sectors such as IT, software, hardware and communication. Cloud sharing, Open Source software development, Blockchain technologies are some examples of sharing of knowledge, skill, resources and peer to peer transaction models that revolutionized the world. Blockchains, Make sense lab, A closer look, Google, Odaa etc are some of our listed platforms that fall into this criteria though there are hundreds of them around the world.

Tools

When anyone one can earn by lending their idle assets, ensures the minimal waste of resources. At the same time people are benefited by getting the chance to use utilities at lower cost. From toy, book, lenses to construction equipment, share, rent or buy Offerup, antbuildz, Rukkola, Taskeasy, ToyLibrary, Dingdong, Renalens such platforms can be good options with many others who create such opportunities.

Travel

Tourism and travel industry is the most affected sector by the meteoric rise of shared and collaborative services. Global and local shared mobility services played a big role accompanied by accommodation solutions like Airbnb, Couchsurfing, Noirbnb, Campspace, Mycamper ect or peer to peer caravan and RV sharing service like Camplify. Also services like TravellingSpoon offers homemade food anywhere you go. GetYourGuide is an example of services that help people book tours and connect to a local guide.

Art and Creativity

The sharing service model was first introduced by a music sharing app called Napster. Till then these models are helping people around the world in every aspect of their life. Art and culture industry faced a dramatic change when people could share their creativity with others without any distribution company. Vimeo, Kickstarter, Mila, Talent, Bliive, Posibl are some of our listings working to help people share their creativity with others and vice versa for a change.

 

 

Popular sharing economy companies

 

Uber

Garret Camp, the founder of Uber was looking to find a way to make direct transportation less expensive. He figured that sharing the cost with others would make it more affordable, and that’s how Uber came into being, providing transport solutions to and creating earning opportunities for billions of people around the world.

Airbnb

Airbnb brought in the concept that people can monetize their extra room or unoccupied space and market it to a large, focused audience. It is a community marketplace where people can list, find and book accommodations around the globe using the internet.

Lyft

Lyft is a ridesharing service that connects drivers with riders who use the Lyft app to order rides. The company is known for its quality service. Their rates are affordable and passengers can pay automatically through the app.

Turo

Turo is a peer-to-peer car sharing platform that allows people to rent cars from local owners. Car owners post regular and weekly rental prices for their own cars.From regular cars to exclusive specialty vehicles, drivers can select from over 800 top rated manufactures and models listed online.

Boatbound

lets you rent boats from locals, with or without a captain.

MoneyParking

MonkeyParking lets you get paid for giving up your parking space; currently only available in San Francisco and Rome.

Feastly

Feastly is your connection to the underground supper club scene. Home cooks and moonlighting chefs host meals for strangers in their homes and apartments
Instacart is a grocery delivery company — not a true sharing site — with a twist. Instead of investing millions in warehouses like defunct Webvan, the company hires smartphone-toting 20-somethings who physically go to the store, buy your groceries and deliver them to your house.

 

The future of sharing economy

Next we’ll dive into the controversies over the sharing economy and try to predict the future of this hot phenomenon.
According to PriceWaterhouseCoopers, global revenues from sharing in only five industries – tourism, car sharing, banking, staffing, music and video distribution – will rise from $15 billion in 2015 to $335 billion by 2025.

The number of US citizens participating in the sharing economy is expected to reach 86.5 million, according to Statista.
And just not in the US, according to the state information center China’s sharing economy has a transaction volume of more than $522 billion dollars. In 2020, the Covid-19 pandemic increased China’s sharing economy by 2.9 percent. Although regulations reduced the availability of housing, jobs, and travel opportunities, exchanging knowledge, expertise and medical services increased by 30.9 percent and 27.8 percent, respectively.

the rise of sharing economy

Based on Nielsen data, our graph depicts how welcoming people in various parts of the world are of sharing cultures. The adoption of sharing services is somewhat widespread.

In the financial sector online lending is expected to rise at a CAGR (compound annual growth rate) of 63 percent between 2013 and 2025. As a result, it is the sharing economy’s fastest-growing market. Online staffing is the second-fastest-growing area of the shared economy, with a CAGR of 37% between 2013 and 2025.(Source: Schroders)

All above data indicates that the shared economy is growing very fast. Collaborative consumption is many ways beneficial for individuals, for community and for the world. It ensures minimal waste of resources and maximum access to resources at the same time, helps to build trust between individuals at global scale and also strengthens communities.

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