Hong Jun Zeng
The term “sharing economy” is an umbrella term for an organizational model that is also known as the collaborative economy or the peer-to-peer economy. This model refers to the sharing of resources by individuals and organizations through a digital platform, whether it be an individual’s home, a vehicle, or a service or skill.(Belk, 2010) Other names for this model include the collaborative economy and the peer-to-peer economy. The sharing economy is characterized by the practice of people who are not personally acquainted with one another sharing resources in order to maximize the economic benefit derived from the utilization of goods. This business model has been slowly but surely altering the market structure.(Frenken and Schor, 2017)
Example about sharing economy
People get paid for sharing their private property, which is especially important now that COVID-19 has had a significant impact on the global economy, people are not doing as well as they used to, the number of people without jobs has increased dramatically, and the need for money has become even more pressing. Because of this, options such as renting out one’s home or working for Uber as a driver have become increasingly popular. Airbnb is more affordable for the average family than hotels are because it is 30–60% less expensive than hotels, and Airbnb is more suitable for a large family gathering because it is an entire home that can be rented out for the occasion. Travelers now have a second option in addition to a hotel when they rent out their home through Airbnb. Becoming an Uber driver, on the other hand, is the best option for people in situations in which they are unable to find work or when they want to earn additional money. People under the age of 30 often consider Uber to be a good option for a part-time job because of its flexible scheduling and favorable financial conditions. Both the utilization rate of the car and the rate at which it generates income will increase as a result of this action.
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The sharing economy helps to foster the growth of environmentally responsible cities. The sharing economy increases the utilization of products, which reduces the amount of waste produced, provides income to the owners of the items, and lowers the cost of use for those who are in need of it. All of these benefits have a positive impact on the environment. (Wu, 2016) For instance, people use the Uber platform to hire private vehicle owners to deliver passengers to their destinations. By doing so, this prevents an increase in the number of vehicle emissions, which can be harmful to the environment. The cost of sharing economy in promoting green city development has been reduced, which makes the attraction of sharing economy increased for some companies, governments have promoted green food, electric cars, and other programs based on green environment, (Barosh et al., 2014) all for the betterment of the city’s ecological environment to further enhance, the essence of this content is actually the same as the essence of sharing economy, will the resource utilization is increased. Sharing economy is a form of economic activity in which resources are pooled
In contrast to traditional forms of the economy, which charge exorbitant platform fees, the sharing economy is powered by digital platforms that connect people who have resources to share with those who are looking for them. People are able to get the goods they want more accurately thanks to electronic technology, and thanks to electronic products, a new type of economy known as the app economy has been born. In today’s world, a new digital media platform that was created through electronic technology has given people deep popularity with low platform fees. (Puschmann,2016) According to Puschmann People’s perspectives on the economy have been fundamentally altered as a result of the rise of the sharing economy, which is now recognized as an important form of sustainable economy that is highly adaptable and can be maintained through ongoing innovation. Consumerism has evolved to the point where, as Tamboveca points out, people are more likely to pay money to have an experience with a product or service rather than actually owning it. (Tamboveca, 2022) Because of this, businesses are continually looking for new ways to make things available to customers in the form of sharing, as evidenced by the proliferation of services such as car-sharing and bike-sharing, in order to meet customer demand.
The flaws that remain in the sharing economy
The trust that people have in one another is the foundation of the sharing economy. In the past, when there were no legal provisions governing the sharing of items, the sharing economy continued to experience a great deal of difficulty. For instance, in the case of Airbnb, if the tenant causes damage to the house and the platform does not have access to the tenant’s information, the owner of the house is responsible for paying all of the costs, which is obviously unfair to the owner of the house. (An example of a landlord suffering prejudice)Furthermore, traditional regulations are only applicable to the case of the sharing economy, and because the boundaries of the regulations are too hazy, traditional laws and regulations do not adjudicate on which of the negligent parties was responsible for the incident (EU Commission, 2016). There are problems not only on the owner’s side, but also on the tenant’s side, where the owner may provide false information in order to entice the tenant to pay, and after the payment is made, these fraudulent messages are deleted, and the person who posted the message logs out of the account. As a result, the platform is unable to continue to pursue these people, which results in the theft of the tenant’s funds as well. As a result, the sharing economy calls for the exchange of physical goods on the basis of the trust that people have in one another. Furthermore, as the first picture demonstrates in a manner that is both accurate and realistic, all three parties involved in the exchange of goods should ensure that they are being honest with one another so that it does not result in one party being victimized by interests as well as persons during the course of the transaction.
The sharing economy is still centered on individuals, communities, and the natural world, and it was designed to preserve ecosystems while maintaining its own viability. Because of the market potential of the Internet and the trust that individuals have in one another, digital platforms are helping to spread the concept of the sharing economy. Trust undoubtedly has a positive influence on individuals. In spite of the fact that the sharing economy has already provided people with a great deal of advantages during the course of its development, there are still issues that need to be resolved. One of these issues is the question of how to strike a healthy balance between the potential downsides and upsides of participating in the sharing economy, so that it can be incorporated into the lives of everyone. People will be able to utilize the sharing platform more effectively as a result of this, which will allow the sharing economy to more effectively contribute to the growth of the economy!
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YouTube. (2018, December 18). Sharing economy: Towards a resource-light lifestyle | Sabrina Chakori | tedxuq. YouTube. https://www.youtube.com/watch?v=h4hKesY4lAM