The sharing economy what it is, examples, and how big data, platforms and algorithms fuel it bernard marr contributor opinions expressed by forbes contributors are their own. Our company and the airbnb community are leaders in the new sharing. The sharing economy in developing countries 4 enabling entrepreneurship sharing economy platforms can enable more microentrepreneurship and support people who are in parttime work jain, 2015. Adapting to the sharing economy instead of buying and owning products, consumers are increasingly interested in leasing and sharing them. Issues facing platforms, participants, and regulators. International trade statistics 2015 provides a detailed overview of the latest developments in world trade, covering both merchandise and services trade as well as trade measured in valueadded terms. The opportunities and risks of the sharing economy written testimony of dean baker codirector, center for economic and policy research cepr for the hearing on the disrupter series. To quantify these linkages, we rely on the implan model, an inputoutput io model based on federal government data. This annual document contains the developments in the indian economy during the financial year 201516. Community libraries emerged in the 18th century, allowing people to lend and borrow books to and. Cusumano communications of the acm, january 2015, vol. The share has increased by 2 percentage point since 2005 as a result of increased health spending and a sluggish economy. Past, present, and future, i will first look back at the growth of the asian economy and its driving forces, and then share my views on the challenges ahead for the sustainable growth of the asian economy. This estimate is based on the rapid growth of uber and airbnb as indicative.
How the sharing economy can make its case mckinsey. A snapshot of the sharing economy by the numbers perspective from industry specialists iii. Certain sharing economy players have grown into global companies in the space of only a few years. Pdf on the sharing economy share and discover research. Collaborative consumption, often associated with the sharing economy, takes place in organized systems or networks, in which participants conduct sharing activities in the form of renting, lending, trading, bartering, and swapping of goods, services, transportation solutions, space, or money. In the traditional capitalist economic model, goods are owned by individuals. From cars to houses, people around the world are realising what they can experience without being encumbered.
Past, present, and future asian economic growth in historical context. Zervas et al 2015 study the effects of airbnb on the hotel industry in texas, finding more rentals on airbnb associated with lower hotel revenues and prices. What is even more significant is the ability of the modern sharing economy to get users to overcome any trust gap between them and a stranger by establishing trust in the connection process itself. Inflows of fdi as a share of gdp, by economic group. The activities range from ride sharing to renting a spare room to crowdfunding and almost everything in between. In 2015, president obama proposes federal spending levels totaling 21 percent of the u. The sharing economy july 2016 solange le jeune, sustainable investment analyst for professional clients only. Instead of buying and owning products, consumers are increasingly interested in leasing and sharing them. Today, however, with the corporatization of a number of the leading players, the role of the sharing economy in a just and sustainable transition is an open question. The business of sharing automotive retail and consumer goods hospitality entertainment, media and communications v. The terms sharing economy collaborative consumption peer to peer economy are among the most popular to describe the phenomenon as peer to peer sharing of access to underutilised goods and services, which prioritizes utilization and accessibility over ownership schor and fitzmaurice, 2015. Airbnb, snapgoods and 12 more pioneers of the share economy.
Nicolas brusson how to disrupt the global citytocity. Jan 28, 2015 the sharing economy has been widely hailed as a major growth sector, by sources ranging from fortune magazine to president obama. The sharing economy, popularized by the likes of airbnb and uber, has enjoyed remarkably rapid growth over the last five years and looks set to scale new heights over the next decade. New internetbased \sharing economy markets enable consumerowners to rent out their durable goods to nonowners. We explore the economic impact of the sharing economy on incumbent rms. How the sharing economy will impact marketing techcrunch. Giving someone a ride, having a guest in your spare room, running errands for someone, participating in a supper clubthese are not revolutionary concepts. Sharing is a form of social exchange that takes place among people known to each other, without any. The share of the economy allocated to health spending is similar to belgium, canada and austria but still below the levels of the netherlands, switzerland and sweden, for example, that spent around 11%. The wideranging implications of the shift to a sharing economy, a new model of organizing economic activity that may supplant traditional corporations. Debating the sharing economy great transition initiative. April rinne founder and principal, april worldwide.
India economic survey 201516 key highlights the finance minister presented the economic survey 201516 before the parliament on 26 february 2016. Understanding the sharing economy weforum world economic. The sharing economy is built on the idea of collaborative consumption. Conceptualizing the sharing economy through presenting a. With this background, the dominant platform of the sharing. The term sharing economy refers to individuals directly interacting with each other online to exchange goods and services, which is also known as collaborative consumption.
Sizing the revenue opportunity, pwc, 2014 the rise of the sharing economy the sharing economy is growing fast, disrupting traditional models, and will rival the rental market1 in size by 2025 over the past decade, the world has witnessed the rise of a new sharing economy one where. A global perspective era dablanorris, kalpana kochhar, nujin suphaphiphat, frantisek ricka, evridiki tsounta i n t e r n a t i o n a l m o n e t a r y f u n d. Share economy 2017 the new business model this report analyzes the size and the acceptance of the share economy in the six european countries austria, belgium, germany, the netherlands, switzerland and turkey. During last years, icts have enabled the rise of the socalled collaborative consumption cc a form of consumption where people share goods and services online. Companies can benefit from the trend toward collaborative consumption through creative new approaches to defining and distributing. The sharing economy and increasing numbers of services using more efficient marketplacetype formats, continue to attract consumers, but also face significant challenges. The paper aims to discuss the socalled sharing economy from a business modeling and industrial structure perspective. The size and scale of uber, airbnb and several other firms now rival, or even surpass, those of some of the worlds largest businesses in transportation, hospitality and other sectors. The workshop brought together legal, economic, and business experts as well as stakeholders to examine competition. Contributions to the political debate by the cologne institute for economic research competition in the sharing economy iw policy paper 19 2015. By unlocking the sharing economy today, can companies transform todays threat. If you want to keep your lawn in control, you need to buy a weed whacker. Davos provides an ideal forum to catalyze these opportunities and shift the tone of the conversation as the greeks did during my three days in athens.
May, 2015 the export monitor provides goodsandservices export trends in u. The illustrative cases examined are airbnb and uber. The rise of the socalled sharing economy has created new competition across a number of industries, most notably hotels, through airbnb, and taxis, through ride sharing services like uber, lyft, and sidecar. Apart from having economic consequences, the sharing econ. The sharing economy is unambiguously increasing competition. This sector also substantially impacts the national economy.
Why people participate in collaborative consumption article pdf available in journal of the association for information science and technology 679. Average budget balance by economic group, 2010 2015 % of gdp 19. The current and future state of the sharing economy. The capitalist sharing economy is a way of purchasing goods and services that differs from the traditional business model of corporations hiring employees to produce products to sell to consumers. Participation of developing economies in world trade. Inflows of fdi as a share of gdp, by economic group, 20052015 % 25. The sharing economy and how it is changing industries. This chart shows federal spending and tax revenue as a share of the overall u.
How traditional firms must compete in the sharing economy. Because many of these businesses are private, its impossible to know the actual size of the sharing economy. However, a growing departure from traditional business models and the influx of startup companies offering ondemand services has led to ambiguity around the term. Further, the unanticipated surge in sharing economy business models and the proliferation of companies that serve as catalysts for collaborative consumption has created a disruption of existing. The sharing economy allows people to conveniently access goods and services in sustainable ways, to engage in new experiences, and to capitalize on greater economic. The sharing economy could transform our cities but we need to see the dark side too 16 jan 2018. However, economist robert reich argues that the sharethescraps economy would be a more appropriate term, fearing that rather than. June 2015 sdn15 i m f s t a f f d i s c u s s i on n o t e causes and consequences of income inequality. The federal trade commission commission or ftc will hold a workshop to explore issues relating to emerging internet peertopeer platformsoften called the sharing economyand the economic activity these platforms facilitate. Understanding the opportunities for growth for the past five years we have seen the rise of a new trend enabled by technology. It generates demand for inland manufacturers who produce, for example. Cc has been expected to alleviate societal problems such as hyperconsumption, pollution, and poverty by lowering cost of economic coordination within communities. Zervas et al 2015 study the effects of airbnb on the hotel industry in texas, finding more rentals on. Pdf during last years, icts have enabled the rise of the socalled collaborative consumption cc.
The research question raised is concerned with the extent to which transaction cost theory can be used to explain the changing industrial structures in the application areas that the internetbased platforms are addressing. Through user data from their cloudbased expense management system, certify has analyzed how the share of total paid car rides for business people is shi. Airbnb, snapgoods and 12 more pioneers of the share economy in what is called collaborative consumption, the sharing economy or the peer economy, owners rent out something they are not using. The dark side of the sharing economy world economic forum. The circular economy, design thinking and education for. December 14, 20 abstract peertopeer markets, collectively known as the sharing econom,y have emerged as alternative suppliers of goods and services traditionally provided by longestablished industries.
The sharing economy what it is, examples, and how big. The sharing economy is taking the country by storm. The concepts of businesstoconsumer online platforms or the platform economy schor and attwoodcharles, 2017 are also associated with the sharing economy demary, 2015. With its calls to fight old economy industries, the sharing economy seems to borrow from the fuck the man ethos of earlier generations of sharers, from hippies and activists sharing their lives in communes to punk rock kids distributing free zines at benefit shows to techies sharing music files on napster.
Companies can benefit from the trend toward collaborative consumption through creative new approaches to defining and distributing their offerings. This paper was produced as part of the connected consumption and connected economy project of the connected learning research network of the. Permission to make digital or hard copies of any information contained in these web pages is. Jan 21, 2015 2015 will be a pivotal year for the sharing economy, cities, and the new global context. Individuals connect to each other through websites or phone applications, like airbnb or uber, which create the market space for peertopeer inter actions. Cities play a central role in deciding which sharing economy practices are adopted and which are rejected. Pdf winter 2015 adapting to the sharing economy katja. How the sharing economy creates jobs, benefits consumers, and raises policy questions before the subcommittee on commerce, manufacturing, and trade.
The sharing economy what it is, examples, and how big data. The origins of the linear economy the takemakeusedispose model of consumption date from the industrial revolution and the global economy developed around this model. If you want to be able to drive to the store or the airport, you need to buy a car. 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. It explores current status, growth, success factors for further breakthrough and mass acceptance. The opportunities and risks of the sharing economy written. April rinne is a sharing economy expert and a world economic forum young global leader. Uber, airbnb and consequences of the sharing economy. Growth of the sharing economy 3 executive summary 5 main drivers 9 main features of sharing economy companies12 business models a contender for the throne 14 emergence of the model in certain key sectors 16 i. How the sharing economy can make its case december 2015 article.
Transaction costs and the sharing economy emerald insight. In 2015, the phrase sharing economy officially hit the pages of the oxford english dictionary. For this analysis, the taxi category includes all taxi, limousine and airport shuttle rides. In addition, digital platforms can enable matching of a diverse. Collaborative consumption, often associated with the sharing economy, takes place in organized systems or networks, in which participants conduct sharing activities in the form of renting, lending, t. Transaction costs and the sharing economy, 26th european regional conference of the international. As competition increases, consumers have new options and incumbents may be forced to respond. Please do not cite or quote without permission of author. How airbnb benefits communities founded in august of 2008 and based in san francisco, california, airbnb is a trusted community marketplace for people to list, discover, and book unique accommodations around the world online or from a mobile phone.
This new trend moves us beyond ownership into experience powered by the ability to share. Our aim with this paper is to put the sharing economy into perspective by providing a conceptual framework that allows us to define the sharing economy and its close cousins and to understand its sudden rise from an economic historic perspective section 2, to assess sharing economy platforms in terms of the economic, social and environmental. Crowdsourcing, sharing economy and development 5 the sharing economy has the potential to be applied in a diverse range of sectors, which include3. Mckinsey estimates that 162 million people in the usa and the eu work in the gig economy, this is about 20% to 30% of the workforce. Jun 03, 2016 the leading businesses that are advancing the concept of the sharing economy are in many respects no longer insurgents and newcomers. Putting the sharing economy into perspective sciencedirect. The drivers of the sharing economy include social media and information technology, which enabled the online interaction heinrichs 20. Sharing economy startups are in many ways a logical outgrowth of social media platforms such as facebook, pinterist, and trip advisor, which bring together people with common. This week a new report by the consulting giant mckinsey was released, and it shows the real size of the gig economy in the us and the eu. What is new, in the sharing economy, is that you are not. It has disrupted mature industries, such as hotels and automotives. Oct 21, 2016 the sharing economy what it is, examples, and how big data, platforms and algorithms fuel it bernard marr contributor opinions expressed by forbes contributors are their own. In what is called collaborative consumption, the sharing economy or the peer economy, owners rent out something they are not using, such as a car, house or bicycle to a stranger using these peer. The sharing economy is a peertopeer activity of acquiring, providing, or sharing access to goods and services often facilitated by an online platform.