Origins, definitions, impact and regulatory issues. Conceptualizing the sharing economy through presenting a. Sharing economy definition and meaning collins english. The sharing economy promises to increase efficiency and effectiveness by reducing transaction costs and. The lack of overhead and inventory help sharebased businesses run lean. This can reduce costs for available goods, services, and time. The sharing economy has a history of disrupting traditional business sectors. Sharing economy meaning of sharing economy by lexico. Sharing economy definition of sharing economy by merriam. Collaborative consumption differs from standard commercial consumption in that. Institute for prospective technological studies digital economy working paper 201601, jrc100369. Based on this definition, the sharing economy can be distinguished from three other types of platforms that are sharing economy examples predating the internet.
Policy confusion about the exact definition of the sharing economy represents a big opportunity for companies competing in it. Companies embracing this model develop technology that allows supply to meet demand with less friction and fewer transaction costs. The sharing economy is built on the idea of collaborative consumption. Why people participate in collaborative consumption article pdf available in journal of the association for information science and technology 679. May 26, 2016 the broad umbrella term sharing economy is critically assessed and a typology developed that identifies the commercial peer to peer sharing economy as the main focus of both controversies and policyrelevant issues. The sharing economy allows access to physical assets, rather. The purpose of this paper is to examine the effects of inhibiting, motivating, and technological factors on users intention to participate in the sharing economy. It breeds trust, generosity and compassion among neighbors, cities and citizens. Moreover, the matrix links the sharing economy with the rest of the online economy and gives it a special place in the wider universe. In this way, physical assets are shared as services. Sharing economies allow individuals and groups to make money from underused assets.
Oct 21, 2016 the sharing economy is a massive business phenomenon that is transforming many industries and challenging many traditional business models. Another 18 the sharing economy is shaping up to be a parttime, temporary option for most participants. The european union, for example, is soon to decide whether ride sharing is a digital service regulated under the 2006 eu services directive or a transport service regulated by member states. Within those virtual marketplaces, suppliers can connect with buyers to do business. The current and future state of the sharing economy. Consumers have so far enthusiastically adopted the services o ered by rms such as airbnb, uber, lyft, and askrabbit. The emergence of peertopeer platforms, collectively known as the sharing economy, has enabled individuals to collaboratively make use of underutilized inventory via feebased sharing. At the center of the sharing economy, of course, is the customer experience, especially as younger digital natives join the market expecting apps, chatbots, social sharing, and the like. New internetbased \ sharing economy markets enable consumerowners to rent out their durable goods to nonowners. However, the sharing economys implications for marketing thought and practice remain unclear. Jun 04, 2018 the purpose of this paper is to examine the effects of inhibiting, motivating, and technological factors on users intention to participate in the sharing economy. The sharing economy is a massive business phenomenon that is transforming many industries and challenging many traditional business models.
In order to become a driver for either company, you must do the following. Sharing economy definition is economic activity that involves individuals buying or selling usually temporary access to goods or services especially as arranged through an online company or organization. This article defines the sharing economy as a technologically enabled socioeconomic system with five key characteristics i. The wideranging implications of the shift to a sharing economy, a new model of organizing economic activity that may supplant traditional corporations. Clarifying the definition of the sharing economy is important, as both advocates and opponents are asking for defined regulations in order to protect businesses and individuals. The definition used in belgium flanders for this purpose, is based on a definition created by idea 2017 for the flemish government4,which defines the sharing economy as an economic system that allows consumers and companies to make temporary use of underused. Gross domestic product gdp a countrys value added of all.
Collaborative consumption differs from standard commercial consumption in that the cost of purchasing the good or service. The sharing economy is the peertopeer based activity of obtaining, giving, or sharing access to good and services. Putting the sharing economy into perspective utrecht university. Pdf on jun 21, 2018, georgina gorog and others published the definitions of sharing economy. The phrases sharing economy, collaborative economy and ondemand economy are often used interchangeably, though they technically mean different things. Defining the relevant market in the sharing economy. It is may 2015, and im contemplating the future of capitalism at ouishare fest, a gathering in paris with a decidedly noncapitalist vibe. Proponents say this sharing economy creates more choice and control for customers, while critics say it unfairly undermines competition. Sharing economy is an umbrella term referring to the practices of sharing, exchange or rental of goods and services to others through it without the transfer of ownership. Mar 05, 2015 sharing economy, or shareconomy, also goes by other names, such as collaborative economy, collaborative consumption peertopeer economy, and relationship economy, to name a few.
Young people today prioritize things that make their life easier, said meredith ferguson, managing director of research firm dosomething strategic. The sharing economy is built on a supplyanddemand equation wholly alien to traditional media companies. What is the sharing economy example companies, definition. The sharing economy has brought us new business models. Policymakers are now taking a closer look at how fair the sharing economy really is and to see if any rules need to be rewritten. Terms such as collaborative economy, sharing economy, gig economy, ondemand economy and peer economy are often used interchangeably. The sharing economy is a system in which people offer the use of their skills or things. Sharing economy, also known as collaborative consumption, is a trending business concept that highlights the ability and perhaps the preference for individuals to rent. The sharing economy also given, among many others, the label collaborative economy, is potentially the ideal place for reconciling the passions and the interests.
How africa can inspire the future of the sharing economy. Giving someone a ride, having a guest in your spare room, running errands for someone, participating in a supper clubthese are not revolutionary concepts. The sharing economy oxford martin school university of oxford. Jan 08, 2019 interestingly, the sharing economy is a field of activity where the much maligned african tribal system comes into its own, creating international, decentralised networks of trust that facilitate. Insuring the sharing economy american international group. The increased efficiencies allow these brands to passthrough value to their customers and supply chain partners. Mobility industry car clubs car sharing, realtime vehicle sharing ride sharing, parking space rental, ondemand car and bicycle rental, communitybased traf. The sharing economy and how it is changing industries. Sharing economy businesses open up new markets and bring about new regulatory challenges. Sixtyfour percent have worked in the sharing economy for less than a year, and 67 percent view their sharing economy role as a parttime or temporary job. Jun 25, 2015 the sharing economy is a term that is often used to describe online and mobile peertopeer platforms that create virtual marketplaces. Establishing the tax compliance norms for this emerging sharing economy industry in its infancy will assist the irs as this segment of taxpayers grows.
The sharing economy is a term that is often used to describe online and mobile peertopeer platforms that create virtual marketplaces. Despite these merits, quadrant 2 nonetheless contains a. However, the sharing economy s implications for marketing thought and practice remain unclear. The sharing economy is an economic model often defined as a peertopeer p2p based activity of acquiring, providing or sharing access to goods and services that are facilitated. And now, in a brilliant internetinspired twist, sharing has launched an economic revolution. The current and future state of the sharing economy brookings.
Definitions of sharing economy academic literature has not proposed a great number of definitions for the term of sharing economy. The sharing economy what it is, examples, and how big data. Putting the sharing economy into perspective sciencedirect. Sharing, we learn, is the glue that holds society together. We model such markets, and explore their equilibria both in the shortrun, in which ownership decisions are xed, and in the longrun, in which ownership decisions can be changed. The research model was empirically tested using the structural equation modeling technique. Sharing economy meaning in the cambridge english dictionary. The sharing economy concept has been defined in many ways. He called the practice of offering parking spots to the highest bidder extortion masquerading as the sharing economy, according to city news service. In the last few years, however, it has become the domain of conflicting discourses, legal. Understanding the sharing economy weforum world economic.
These could be solved with traditional competition instruments, although adapted to the peculiar features of the sharing economy, including, among others, multisidedness and the presence of different externalities. When the idea first became widely recognized in 2011, it was dubbed by time magazine as one of the ten ideas that will change the world. Despite these merits, quadrant 2 nonetheless contains a set of very different activities with. The sharing economy what it is, examples, and how big. The excellent discussion of regulatory issues is one of my favorite parts of the book. Jun 25, 2019 the sharing economy has a history of disrupting traditional business sectors.
Many commentators consider uber, the ridesharing app, to be a prime example of the sharing economy at work since it allows consumers to use their mobile devices to. Sundararajan carefully examines why current regulation can be illsuited and might stifle innovation in sharing economy. Although, originally, entering the field to analyze, broadly from a governance perspective, how the 2015 refugee crisis was handled in vienna, austria, we found that the nongovernmental organization train of hopelabeled as a citizen startup by the city. The variety of names mirrors the confusion that surrounds this concept. Our article focuses on a nonstandard sharing example that harbors the potential to disrupt received wisdom on the sharing economy. The sharing economy is a concept in which it products and services are used, shared and leased to individuals and organizations. The sharing economy is built on the idea that sharing certain goods, services, and skills is more efficient. The sharing economy is a business model gaining momentum as it challenges incumbents in nearly every industry. Traditional industries are being affected by the sharing economyand many.
What is new, in the sharing economy, is that you are not. In our view the sharing economy initiatives could be defined as to fulfil the following. Aig surveyed 2 independent contractors in sharing economy. It allows multiple end users to collectively develop and consume it services and applications, versus purchasing and maintaining them on an individual basis. The concept of sharing economy is rather new, and there is no uniform definition as to what it comprises or how comprehensive the various sharing economy initiatives are. How the sharing economy can make its case mckinsey. The second part is devoted to studying the impact that the sharing economy has been shown to have on the economy and the workforce. Collectively, this data gave us a holistic view of whats unfolding across both business and consumer landscapes.
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