Sharing Economy

What is the Sharing Economy?

The sharing economy is an economic exemplary defined as a peer-to-peer (P2P) based activity of attaining, providing, or sharing access to goods and services that is often assisted by a community-based on-line podium.

Understanding the Sharing Economy

Societies of people have shared the use of assets for thousands of years, but the arrival of the Internet—and its use of big data—has made it informal for asset owners and those looking for to use those assets to find each other. This sort of dynamic can also be referred to as the shareconomy, combined consumption, collaborative economy, or peer economy.

Sharing economies allow persons and individuals to make money from underused assets. In a sharing economy, idle assets such as parked cars and spare bedrooms can be rented out when not in use. In this way, physical assets are shared as services.

For examples, car sharing services like Zipcar can help demonstrate this idea. According to data provided by the Brookings Institute, private vehicles go unused for 95% of their lifetime. The same report thorough the lodging sharing service Airbnb’s cost advantage over hotel space as homeowners make use of spare bedrooms. Airbnb rates were stated to be between 30-60% cheaper than hotel rates around the world.