A quick look at the sharing economy

The sharing economy is a concept where people rent underused possessions such as bikes, cars, homes, parking spaces and tools from each other. The sharing economy is not a new model; however, it gained momentum in recent years because of social media. Technology has made sharing assets possible on a larger scale along with reduced transaction costs. In addition, as a result of effortless access to data about owners and renters, it is easier for people to trust each other. Anyone can share anything with one-another, at anytime and anywhere.

Many people, myself included, are still apprehensive about the idea of renting a car, taking a ride or staying at someone’s place, just as online purchasing was fifteen years ago. Similarly, I was also hesitant about using my credit card in cyberspace. However, after completing few successful purchases, buying over the Internet became my favorite way to shop for various merchandise.

A popular example, which has proven to be quite controversial, of the sharing economy is Uber. Uber is a mobile app that connects people to a ride. In another words, it is a car-hailing service that is available in many large US cities and is expanding internationally. Uber is a great solution for people who live in areas where it is hard to get a cab or where public transportation is not the best option. According to Uber, their drivers can make $75,000 in San Francisco and $90,000 in New York City a year working 40 hours a week. Not bad for micro-entrepreneurship.

 

Airbnb is the best known example of the “gig economy” where travelers can rent a room or an entire house/apartment for a short term stay. Through the Airbnb site, tourists have access to thousands of rental properties in almost 200 countries.

Personally, I have a little experience with renting assets from people over the internet. Two years ago, I rented a Leica for my vacation. The equipment arrived on time and in perfect condition. I had a chance to use a great and expensive camera without spending thousands of dollars. My rental experience proved to be extremely positive.

This year, I also decided to book an apartment in Paris for my upcoming trip in June. I am especially excited to try this new experience and if I find that it is positive, I may continue to try other offerings or even share my own assets.

Interesting posts about the sharing economy:
What's next for the sharing economy?
Empowering Micro-entrepreneurs Through the Sharing Economy
The sharing economy: A growing force in American business