Sharing economy

Sharing Economy

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. The sharing economy is fully based on the sharing of human and physical resources including the sharing of property, space, vehicles, and services.

History

The concept of sharing economy has been in existence for centuries, through activities such as lending, renting, and swapping. However, the advent of the Internet and the digital revolution has given a new impetus to this economic model. The term "sharing economy" began to appear around the mid-2000s, as new business structures emerged due to the Great Recession, enabling social technologies, and an increasing sense of urgency around global population growth and resource depletion.

Characteristics

The sharing economy is characterized by the sharing of underutilized assets, monetized or not, in ways which create new forms of value. It is often associated with the Gig Economy, where workers are engaged in short-term contracts or freelance work as opposed to permanent jobs. The sharing economy can take a variety of forms, including using internet platforms to connect sellers and buyers.

Impact

The sharing economy has had a significant impact on several industry sectors, most notably transport (Uber, Lyft) and accommodation (Airbnb). It has also affected sectors such as food delivery, online freelancing, and peer-to-peer lending. The sharing economy has been criticized for precarity it can introduce into work, and has been noted for being part of a broader trend of casualisation and 'uberisation' of work.

Regulation

Regulation of the sharing economy is a complex issue, as it involves balancing the interests of the sharing economy companies, traditional service providers, and the public. Some cities and countries have embraced the sharing economy, while others have tried to regulate or even ban certain activities.

See also

• Collaborative consumption
• Crowdfunding
• Crowdsourcing
• Gig economy
• Platform economy