The sharing economy

The sharing economy

The sharing econmy, also known as collaborative consumption or peer-to-peer, is a concept that put foward the ability of people to rent or borrow things and services rather than buy and keep them for themselves,

the sharing economy follows a different path from the normal economy; in fact, the sharing economy allows to monetize goods and services that aren’t fully used by the owner, such as cars, houses or clothes …

The sharing economy has become possible thanks to the Internet, which allows fast communication between people and makes mobile payment possible.

The growth in the number of mobile applications and online platforms that connect people who have underused things with people who want to use them has enabled the owner to sell goods and services that were previously provided by companies, such as airbnb, which competes with the hotel industry.

What is the problem with the sharing economy ?

The term "sharing economy" is somewhat ambiguous and has led to a debate on the limits of this concept, especially for personal services such as uber

Is it a plateform of sharing economy or not ? The question is real and expert say that it falls into the category of normal economy and not in the sharing economy.

so how do we know if it’s a sharing economy or not ?

The sharing economy has different characteristics with regard to the interaction between consumers, temporal access and physical goods. So with this definition, blablacar is a sharing economy platform because the customer takes a seat that would n’t have been occupied during a trip already planned, contrary to the uber application where the trip would never have existed without the customer's order and it is a big difference and it is the same for the airbnb platform if a person buys a second home to rent it permanently to a tourist it’s not sharing economy but normal economy. We can see that the platforms play with the limits of the law and sometimes they lose like uber who have to pay a big penalty in different countries.

To conclude, I will talk about the effects on the normal economy. the sharing economy has generated a lot of money, we cannot have a real figure number, as I said before, the definition is ambiguous and the value analyses are limited, but some experts predict that the sharing economy could reach more than one hundred billion dollars in twenty-five years with its five main components, travel, car sharing, finance, staffing and streaming, we can say that the sharing economy has a real and important impact on the economic world.

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