Before starting up with the sharing Economy let us first define what a sharing economy is. So, a sharing economy is generally defined as such an economic model where access to share the goods and services are affiliated by community-based online sources.
The sharing economy connects the buyers and the sellers through the online platform. This type of economy is the fastest growing economy but still faces many challenges such as uncertain regulations and abuse concerns.
The Sharing Economy has been a blessing to use the assets of a wide number of the population with the help of the online platform. It has helped individuals to expand their knowledge and make use of all the possible resources and provide reliable sources to the various users as well.
This type of business model also allows individuals and groups to make money from their unused assets. So here you can rent your parked cars or the unused rooms to others who are in need and in this way you can make the use of those assets which were not even in use and provide services to the customers.
There are many examples in the market for sharing Economy such as Uber and Ola for car services or can say transport services. The data has shown that 95% of the time, the cars at home are unused and parked to cover the space and servicing charges but instead, we can make their use by making it in use in any such platforms. This not only will let you earn some extra income, but will also reduce the service charges for the consumers.
In the past few years there are many businesses included in the sharing economy among which the following are few:
Co-working Platforms: Co-working platforms are the open platform which is open for all the individuals to work as a freelancer, entrepreneur, and even supports to work from home
Peer-to-Peer Lending Platforms: Peer-to-peer lending platforms are for those individuals who can lend and want loans. In these Platforms, the individual grants loans at a lower rate than the traditional lenders.
Fashion Platforms: By the name, it is clear that these types of sites are special for those individuals who want to sell, rent or buy the clothes
Hence, these are the dynamic areas where the sharing economy has evolved and there are still many approaches in this new era.
Criticism faced by Sharing Economy
The first and the major criticism of the sharing economy include uncertainty in the regulations. For example, you can take the rental service offering businesses which should be regulated by federal or some assigned authorities but due to the sharing economy, these services are even being shared by the individuals without a license so in this way the regulations are not being followed. Due to this problem even these individuals get the right to even change the flooring values.
The next criticism faced by this economic type is that, if the government doesn't oversight it then both the buyers and sellers are potential to get abused. Some of the major causes in such a sharing Economy that have been observed are the hidden cameras in the rented rooms, unfair treatment with consumers by ride-sharing contractors, or even such murder cases have been observed.
Another criticism that is on fire in the market is that this online platform business model requires a greater amount of information which if shared can create racial or gender bias. These platforms also allow you to select those with whom you are willing to share your vehicles. Here the algorithms are majorly blamed.
Evening in the sharing economy businesses is based on discriminating between consumers from several backgrounds and providing the services only to certain selected types of consumers. So these were the major criticisms faced by the sharing economy which the economy is combating with time.
Benefits of Sharing Economy
Local delivery available
An example of the sharing economy can be the local delivery of online grocery stores. This kind of business also has the same model as other sharing economy businesses. These kinds of grocery stores majorly use those products which are ready to sell and even the buyers purchase the groceries from the existing shops. The people who work as delivery mediators based on the contracts majorly use their private vehicles to deliver the groceries. Also, the cost of these services is way too low and this is because they don't have to store the goods and neither requires any infrastructure.
Increase in innovation due to transparent and open data
Majorly we observe that the information about certain goods is shared through the online marketplace. The value of these goods can be increased for the individual, business, or society in general.
The data relating to the selling and purchase of the sharing economy are openly shared with the public for further innovative ideas. This also makes more efficient use of the products.
No values are wasted
By unused service, we mean that the service, products, and talents which are not used. So the period when this value is wasted can be instead utilized by the business model that is based on the sharing economy. For example, you can take the car to your house which 95% of the time is not taken into use but by including it in the model of sharing economy, you can make use of it to the real value. You can either use it to provide rides to the people through an online platform and get paid or can also do the delivery stuff. Here the unused and wasted value is not just about any materials, even human time is valuable, so the time that you waste surfing on social media and other technology can be used in some productive platforms with sharing economy models to do the tasks of others and get paid in return.
Hence, including all the mentioned benefits of the sharing economy, it has been an idea of the freelance worker. Sharing economy has not only financial benefits but also has several good impacts on providing part-time working opportunities for the individuals and also startup opportunities to the individuals with new innovative ideas.