What Is the Sharing Economy: Examples, Advantages and Disadvantages

Since the mid-2000s-since the emergence of the sharing economy, traditional business methods have been affected. For some people, this socioeconomic system has changed the way people interact, do business, and use their resources.

On the other hand, critics say that this will weaken traditional businesses and make them suffer.

Consumers have the ability to “share” almost everything in today’s economy. Examples of the sharing economy include houses, cars, and clothing.

When you start a peer-to-peer (P2P), business-to-business (B2B) or business-to-crowd company, you can also “sharing economy” to find different types of business opportunities.

What is the sharing economy?

Shared brands, including platforms such as Uber and Airbnb, are growing every year, partly because 68% of people prefer short-term rental of resource services and products, and 66% are willing to rent these products.

This is also known as a collaborative economy. The Sharing Economy (English: Sharing Economy) allows people to share assets, services, and time with others, and receive monetary or physical rewards.

As an economic model, this works by providing an asset (including a car or house that is often infrequently used) to individuals who are willing to pay in exchange for temporary use.

Through internet & technology, the scope of the sharing economy covers information technology, transportation, housing, communications, agriculture, finance, & labor.

It is also considered to be a mixed economy, providing different forms of exchange, not necessarily providing economic benefits, but also providing social and environmental value.

It advocates the use of waste for a certain purpose. According to supporters and opponents of shared lifestyles, this phenomenon has its advantages and disadvantages.(sharing economy advantages and disadvantages)

In this general discussion, we will enumerate the advantages and disadvantages of this economic model.

Sharing economy examples

sharing economy

If you want to enter the growing trade and swap market, please here is 10 examples of ideas.

1. Jewelry

Diamonds, watches and other jewelry decorations, special occasion clothing, to buy may cost a fortune. As an alternative, consumers can rent jewelry from. 

Consider starting your own jewelry rental company to provide consumers with exquisite accessories, including vintage items, precious gems or costume jewelry, suitable for any occasion.

2. Clothing

Many men and women have wardrobes, and the clothes in them are no longer worn or worn occasionally. Some companies offer purchase, sale and exchange options, as well as clothing ordering services. 

Sharing clothes allows people to clean up their closets, find beautiful clothes in their budget and earn extra money. You can also set up a clothing rental company that specializes in office clothing, special occasion clothing or work clothes.

3. Sporting Goods

Consumers who like skiing, cycling or surfing will not be overly addicted to their sports every day. Through sporting goods rental companies, they can share their equipment and love fitness and entertainment. 

Rent bicycles, snowboards, surfboards, yachts or golf clubs through the new sharing business, or choose sports that are popular in your area or favorite sports of nearby participants.

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4. Parking

In busy downtown areas, close to transportation hubs or during festivals, parking lots are in great demand. Rent parking spaces through the website to provide convenience to consumers and provide additional fees for parking lot owners. 

Start a parking sharing company in your community to improve convenience and maximize profit.

5. Education

When students take classes through colleges and education sharing websites, students can save money and strengthen education. 

You can start a similar company and strengthen the school curriculum or teach skills in visual design, cooking or management.

6. Errand

Hiring someone to dry cleaning, editing a promotional video or walking the dog will make life easier. Operate an errand sharing service to keep dog owners in touch with private pets. 

You can also connect local consumers with errand services, or create professional services that meet the unique needs of seniors, new parents, or college students.

7. Housekeeping

Consumers who do not have time to clean their houses, businesses or vehicles can hire housekeeping services. 

Your cleaning company can connect consumers with general housekeepers, organization experts, or restoration cleaners, who undertake difficult tasks such as after-treatment or restorative cleaning after natural disasters.

8. Food

After the party, or during vacation, the excessive food will spoil in the refrigerator. People can share the food through some apps instead of throwing away the excess food after the party. Another idea is to connect farmers with those in need. 

These and other food sharing programs can reduce waste, save resources and eliminate hunger. If you are passionate about these benefits, please start a local food sharing business.

9. Office space and equipment

Shared office space, furniture and equipment (such as printers and mobile phones) can maximize the company’s budget and provide freelancers with affordable working space.

By 2020, up to 43% of people in the United States will work as freelancers. You can improve flexible working conditions, enhance cooperation and support freelancers and small business owners through B2B sharing companies.

10. Finance

Individuals or small business owners who have difficulty obtaining personal or corporate financing need creative choices. Some loan companies will need to connect with wealthy counterparts. 

Well, if you want to help others achieve their financial goals, those financial sharing companies can provide affordable interest rates and low-cost transactions and services.

Why you should start sharing business?

The sharing economy is growing, and now is a good time to join this trend and meet demand. Your business will bring many social, economic and environmental benefits to society. 

In addition, you can save money due to reduced management fees and management costs. This year, consider starting a business and taking advantage of the growing “sharing economy.”

Advantages of sharing economy

1. It is a form of recycling, re-planning and reuse.

The assets accumulated by human beings, such as cars, property and gadgets, will be used less and less at one point or another. 

Through the sharing economy, private owners can provide their vehicles as a means of transportation for a fee. 

The same applies to unused rooms in the house, and the house owner can sublet the house to others as additional income. Through this type of exchange, unused items and property will not be wasted.

2. It reduces the number of unemployment and provides a platform for sellers.

With the proliferation of online jobs and websites (such as eBay and Amzaon Turk), people can now write websites at home or provide other services online, with greater flexibility, and the ability to sell second-hand goods online. 

Proponents believe that this is good for most Americans, and working with employers who want to hire the perfect candidate, employers can publish the services they need, and workers can provide services for a fee. 

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As for the sale of second-hand goods, sellers can obtain profits, while buyers can obtain these goods at a lower cost.

3. It empowers citizens and makes them more effective.

Advocates of the sharing economy claim that this ecosystem provides individuals with employment opportunities, while giving them their own conditions and more flexible working hours. 

In addition, community residents are encouraged to increase work efficiency by sharing their time and unused items at home. It strengthens the community through sharing.

4. It also opened up new business ideas.

The sharing economy has brought profits and non-profit organizations and companies provide crowdfunding and transportation services, such as CrowdCompanies.com, Uber and Lyft. 

Through cooperation, people who have business ideas but don’t have enough funds can get funds from other people, and those who own a private car can choose to rent a car in exchange for payment.

Disadvantages of sharing economy

1. It is unfair for people who make money and profit from the company through this system.

Opponents of the sharing economy point out that people who work in the sharing economy are deprived of the benefits of full-time employees, such as paid vacation, sick pay and bonuses, while ignoring the fact that they are often underpaid. 

In addition, companies like Uber have reduced the number of people who have used taxis since they rented out, affecting the profits of taxi drivers and companies that provide transportation services.

2. It leads to the loss of government revenue.

Another setback that critics of the sharing economy believes is that the government may lose taxes. Since people doing business on the Internet provide services such as legal writing and web development, they are not regulated. 

In addition, this approach allows individuals from other parts of the world to also provide services. Therefore, not everyone who earns income has to pay taxes from their online income, which should have been added to the government’s tax revenue.

3. It can lead to fraud and scams.

By selling and purchasing products and services online, buyers and sellers are not fully protected from fraud, especially if there is an intention to mislead. Online buyers of products come into contact with sellers who provide low-quality goods, which may be a pressure for buyers. 

In addition, in some cases, a freelancer who spends several hours on a certain job will be deceived by false clients requesting the work, and then will not get the due pay after the service is delivered.

4. It is a new form of capitalism.

Critics believe that the sharing economy is not what it says, because most of the time it uses third-party profits. According to them, it should be called the “Access Economy” because what it does is to provide people with the services and products they need.

In the end, capitalists and participants are the people who benefit most; and Not individuals who provide services and products through these sites.

Any economic system has its advantages and disadvantages. This is something that people should consider. Over the years, the sharing economy has achieved results. There is no doubt that it has been adjusted globally. 

As for its shortcomings, some solutions may still be needed. But one thing is clear. There is no stopping change, and technology will continue to evolve. 

What people need to do is to study the pros and cons of the sharing economy and decide when and where to apply it. As scholars put it, “Be with the good and with the bad.” Over time, it will be better for the people and the economy.

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