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Sharing Economy
Sharing Economy
Sharing economy (also known as shareconomy or col- laborative consumption) is a hybrid market
model (in between owning and gift giving) which refers to peer-to- peer-based sharing
of access to goods and services (coor- dinated through community-based online
services).[1][2] The concept is not new.
The sharing of resources is for example
well known in business-to-business (B2B) like machinery in agriculture and forestry
as well as in business-to-consumer (B2C) like self-service laundries. But three major
drivers enable sharing of resources for a broad variety of new goods and services
as well as new industries.[2] First, customer behaviour for many goods and services
changes from ownership to sharing. Second, online social networks and electronic markets
more easily link consumers. And third, mobile devices and electronic services make the
use of shared goods and services more convenient (e.g. smartphone app instead of
physical key).
The sharing economy can take a variety of forms, includ- ing using information technology
to provide individuals, corporations, non-prots and governments with informa- tion
that enables the optimization of resources[3] through the redistribution, sharing and
reuse of excess capacity in goods and services.[1][3][4] A common premise is that
when information about goods is shared (typically via an online marketplace), the
value of those goods may in- crease for the business, for individuals, for the
commu- nity and for society in general.[5]
Collaborative consumption as a phenomenon is a class of economic arrangements in
which participants share ac- cess to products or services, rather than having individual
ownership.[1] The consumer peer-to-peer rental market is valued at $26bn (15bn), with
new services and platforms popping up all the time.[6]
The collaborative consumption model is used in online marketplaces such as eBay
as well as emerging sec- tors such as social lending, peer-to-peer accommodation,
peer-to-peer travel experiences,[7] peer-to-peer task as- signments or travel advising,
carsharing or commute-bus sharing.[8]
The Harvard Business Review argues that sharing econ- omy is a misnomer, and that
the correct word for this ac- tivity is "access economy. The authors say, When shar- ing
is market-mediated when a company is an inter- mediary between consumers who
dont know each other
it is no longer sharing at all. Rather, consumers are paying to access someone
elses goods or services.[9]
Denition
Denitions for the Sharing Economy come from dier- ent disciplines.
Examples are
economics, business ad- ministration, and law.
A rst major dierentiation distinguishes a macro- and a micro-economic perspective. While the former focuses on
market models, the latter investigates strategies, processes, and systems for companies and their interaction with consumers.[2]
From a macro-economic perspective,
the Sharing Economy follows a hybrid
market model. Exchang- ing goods and services has predominantly been a do- main
of market-based models. These models focus on transferring ownership of
economic resources between two parties. Depending on the involvement of money,
either the traditional market model where two actors exchange the ownership of a good
or ser- vice for money or gift giving, where a good is do- nated to another actor
without any money involved in the transaction process, can be dierentiated.
From a micro-economic perspective, the Sharing Economy is part of the
discussion in various dis- ciplines.
For example, marketing analyzes the relevance of brands that seem to become less rele- vant if consumers are able
Scope
HISTORY
Examples
The phenomenon of the Sharing Economy may be rec- ognized in many industries
which reects their macro- economic importance. The solutions dier from a microeconomic perspective regarding the providers and the in- teraction types.[2]
Uber
Collaborative Communities
Make your lunch with organic food...
cu ltivated by a gro-ecological communities like YoComproSano or
tangible assets such as time, space, skills, and money. An example would be
Taskrabbit, which match users that need tasks done with runners who earn money
by help- ing them complete their to-do lists. The growth of mobile technology provides a
platform to enable location-based GPS technology and to also provide real-time sharing.
[16]
History
Donate things you ...or order a pizza are not going to use
and pay it with
early 2000s, as new business structures emerged due to the Great Recession,
enabling social technologies, and an increasing sense of urgency around global
population growth and resource depletion. One inspiration was the tragedy of the
commons, which refers to the idea that when we all act solely in our selfinterest, we deplete the
you read...
Use BookMooch to give them and receive points to get other books or share it and collect another anywhere in the world with Bookcrossing
Use GoodReads to give your opin ion and discover what others think
and somebody
needs...
using nolotiro.org or Freecycle
Bitcoins
putting an ad on Ebay
est proponents of open source software, posited that net- work technology could
mitigate this issue through what he
Examples of Commons-based peer production (CBPP) commu- nities a.k.a. P2P communities
al- ternative to owning a car. Users can access a car when and where they need
them and pay for their usage by the minute.[15])
called 'commons-based peer production', a concept rst articulated in 2002.[17]
Benkler then extended that analy- sis to shareable goods in Sharing Nicely: On
Shareable goods
and the emergence of sharing as a modality of eco- nomic
production.[18]
The term collaborative consumption was coined by Marcus Felson and Joe L.
Spaeth in their paper Com- munity Structure and Collaborative Consumption: A rou- tine
activity approach published in 1978 in the American Behavioral Scientist.[19] The term
was used in more con- temporary times by Ray Algar, a UK-based management
consultant in an article entitled Collaborative Consump- tion in the Leisure Report
Journal in 2007.[20]
In 2011, collaborative consumption was named one of
5.5
Waste as food
3
TIME Magazines 10 ideas that will change the world.[21]
The UK Government in its 2015 Budget set out objectives improve economic growth
including to make Britain the "...best place in the world to start, invest in, and grow
a business, including through a package of measures to help unlock the potential of the
sharing economy...[22]:4
In 2015, The Business of Sharing by Alex Stephany, CEO of JustPark, was published by
Palgrave Macmillan.[23] The book features interviews with the high-prole entrepreneurs such as Martin Varsavsky and venture cap- italists such as Fred Wilson.
5.3 Trust
The Sharing Economy relies on the will of the users to share, but in order to make
an exchange, users have to be trustworthy. Sharing economy organizations say they
are committed to building and validating trusted relationships between members of their
community, including produc- ers, suppliers, customers or participants.[30]
Driving forces
The driving forces behind the rise of sharing economy organizations and businesses
include:
1.
2.
3.
economy
will
By sharing transportation and assets the benets of a shar- ing economy are said to
include the following:
4
9
CRITICISM AND CONTROVERSIES
Reducing negative environmental impact (such as reducing the carbon footprint
and consumption of resources)[40][41][42]
Stronger communities[41]
Saving costs by borrowing and recycling items[41]
Providing people with access to goods who can't af- ford buying them[43] or have
no interest in long-term usage
Increased independence, exibility and self-reliance by decentralization,
of certain entry- barriers and self-organization[44]
the abolition
Transport
The Harvard Business Review argues that sharing econ- omy is a misnomer, and
that the correct word for this activity is "access economy. The authors say,
When sharing is market-mediated when a company is an intermediary between
consumers who dont know each other it is no longer sharing at all. Rather,
consumers
are paying to access someone elses goods or services.[9] The article goes on to show
that companies (such as Uber) who understand this, and whose marketing highlights
the nancial benets to participants, are successful, while companies (such as Lyft)
whose marketing highlights the social benets of the service are less successful.
Salon writes that the sharing economy ...
[is] not the Internet 'gift economy' as
originally conceived, a utopia in which we all benet from our voluntary
contributions. Its something quite dierent the relentless co-optation of the gift
economy by market capitalism. The sharing economy, as practiced by Silicon Valley,
is a betrayal of the gift economy. The potlatch has been paved over, and replaced
with a digital shopping mall.[50][51][52][53]
Andrew Leonard,[54][55][56] Evgeny Morozov,[57] Bernard Marszalek,[58] Dean Baker,[59][60]
and Andrew Keen[61] criticized the for-prot sector of the sharing economy, writing
that sharing economy businesses extract prots from their given sector by
successfully [making] an end run around the existing costs of doing business taxes, regulations, and insurance.
Susie Cagle wrote that the benets big sharing economy players might be making
for themselves are not exactly trickling down, and that the sharing economy
doesnt build trust because where it builds new connections, it often replicates
old patterns of privileged access for some, and denial for others.[62] William
Alden wrote that The so-called sharing economy is supposed to of- fer a new kind of
capitalism, one where regular folks, en- abled by ecient online platforms, can turn
their fallow assets into cash machines ... But the reality is that these markets also
tend to attract a class of well-heeled pro- fessional operators, who outperform the
amateurs just like the rest of the economy.[63]
New York Magazine wrote that the sharing economy has succeeded in large part
because the real economy has been struggling. Specically, in the magazines
view, the sharing economy succeeds because of a depressed labor market, in which
lots of people are trying to ll holes in their income by monetizing their stu and
their labor in creative ways, and that in many cases, people join the sharing
economy because they've recently lost a full-time job, including a few cases where
the pricing structure of the sharing economy may have made their old jobs less
protable (e.g. full-time taxi drivers who may have switched to Lyft or Uber). The
magazine writes that In almost every case, what compels people to open up their
homes and cars to complete strangers is money, not trust.
... Tools that help people trust in the kindness of strangers might be pushing hesitant
sharing-economy participants over the threshold to adoption. But whats getting them to
the threshold in the rst place is a damaged economy, and harmful public policy that has
forced millions of people to look to odd jobs for sustenance.[64][65][66]
The Hungton Post wrote that some people believe the recent recession lead to the
expansion of the sharing econ5
omy because people could easily employee themselves through the services that
these companies oer. How- ever, this concept is only hiding the fact that such employment is only a new face for contractual work and tempo- rary employment that
doesnt provide the necessary safe- guards for modern living. When companies use
contract based employment, the advantage for a business of using such non-regular
workers is obvious: It can lower labor costs dramatically, often by 30 percent, since
it is not re- sponsible for health benets, social security, unemploy- ment or injured
workers compensation, paid sick or va- cation leave and more. Contract workers, who
are barred from forming unions and have no grievance procedure, can be dismissed
without notice.[67]
Furthermore, Uber, Airbnb and other companies have had drastic eects on
infrastructures such a road conges- tion and housing. Major cities such as San
Francisco and New York City have become even more congested due to ride sharing.
According to transportation analyst Charles Komano, Uber-caused congestion has
reduced trac speeds in downtown Manhattan by around 8 percent.[67]
Xconomy wrote about the debate over the status of the workers within the sharing
economy, whether they should be treated as contract workers or employees of the
com- panies. This issue seems to be most relevant among shar- ing economy companies
such as Uber.
The reason this has become such a big issue is that the two types of
work- ers are treated very dierently. Contract workers are not guaranteed any
benets and pay can be below average. However, if they are employees, they are
granted access to benets and pay is generally higher. The State of Cali- fornia is
trying to go after Uber and make them pay a ne to compensate workers fairly. The
California Public Util- ities Commission was working on a case that addresses the
same underlying issue seen in the contract worker controversywhether the new
ways of operating in the sharing economy model should be subject to the same
regulations governing traditional businesses.[68] Business Insider wrote that companies
such as Airbnb and Uber do not share their reputation data with the very
users who it belongs to. This is an issue since no matter how well you behave on
any one platform, your reputation doesnt travel with you.
This fragmentation
has some negative consequences, such as the Airbnb squatters who had previously
deceived Kickstarter users to the tune of
$40,000.[69] Sharing data between these platforms could have prevented the repeat
incident.
Business Insiders view is that since the Sharing Economy is in its
infancy, this has been accepted. However, as the industry matures, this will need to
change.[70]
Giana Eckhardt and Fleura Bardhi say that the sharing economy promotes and
prioritizes cheap fares and low costs rather than personal relationships, which is tied
to similar issues in crowdsourcing. For example, Zipcar is advertised as a ride-sharing
service, but its been brought into consideration that the consumers reap similar benets from Zipcar as they would from, say, a hotel.
In
this example, there is minimal social interaction going on and the primary concern is the
low cost. Other examples many include myriad other sharing economies such as
AirBnB or Uber. Because of this, the sharing economy may not be about sharing but
rather about access. Giana Eckhardt and Fleura Bardhi say the sharing economy
has taught people to prioritize cheap and easy access over interpersonal communication,
and the value of going the extra mile for those interactions has diminished.[71]
The New York Times wrote that there was a recent cor- porate decision by Uber
which aimed at lowering its fare rates by 15% in over 100 cities in the United
States.[72] This decision caused many Uber employee drivers to as- semble and
express their disagreement with the recent pay cut. Uber has made a statement
claiming that when it cut prices previously, the amount of time drivers spent
waiting for fares fell, meaning drivers did more business and ultimately earned more
money.[72]
The local economic benet of the sharing economy is o- set by its current form, which is
that huge tech companies reap a great deal of the prot in many cases. For example, Uber, which is estimated to be worth $50B as of mid2015,[73] takes up to 30% commission from the gross rev- enue of its drivers,[74] leaving
many drivers making less than minimum wage.[75]
10
news, action
and
and the primary
connection
global on-
Echo (Economy of Hours):[79] A UK based non- prot providing infrastructure to, and
lobbying at national level on behalf of, local time banking projects.[80][81]
European Sharing Economy Coalition:[82]
The Coalition is the rst multi-stakeholder
European network created to mature policies, markets and sec- tors in Europe for the
Sharing Economy to become mainstream.
Shared Economy CPA:[83] Shared Economy CPA is a U.S. based accounting rm that
specializes in assisting the workers of the Sharing Economy. Lo- cated on their
site is numerous free resources that assists those who are looking for tax
guidance.
6
13
NOTES AND REFERENCES
NASE:[84] stands for The Norwegian Association for Sharing Economy, NASE
supports all organi- zations working within the sharing economy.
11 Types of sharing
12
See also
Access economy
Co-creation
Collaborative nance
Collaborative innovation network
Commons-based peer production
Cooperative
Creative Commons
Digital Collaboration
Internet of Things
Internet of Services
Open Knowledge Foundation
Open Source
P2P Foundation
Peer-to-peer (meme)
Recommerce
Reputation capital
Reputation systems
Secondhand good
Social collaboration
Social commerce
Social dining
Social Peer-to-Peer Processes
Two-sided market
13
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Hamari,
Juho;
Sjklint,
Mimmi;
Ukkonen,
Antti (2015).
The
Sharing
Economy:
Why People Par- ticipate in Collaborative Consumption.
Journal of
the Association for Information Science and Technology. doi:10.1002/asi.23552.
[2]
(Puschmann & Alt, 2016) Puschmann, T., Alt, R., Shar- ing Economy, in: Business &
Information Systems Engi- neering, 58 (2016), 1, pp. 93-99
[3]
Cohen,
Boyd;
Kietzmann,
Jan (2014).
Ride On!
Mobility
Business
Models
for
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[4]
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[5]
[6]
[7]
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[9]
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Mondays Musings:
Four Elements for A #SharingEconomy Biz Model
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7
[17] Benkler, Yochai (2002). Coases Penguin, or, Linux and
The Nature of the Firm (PDF). The Yale Law Journal
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[18]
Benkler, Yochai (2004). Sharing Nicely: On Shareable goods and the emergence of
sharing as a modality of eco- nomic production. The Yale Law Journal 114. Retrieved
9 July 2014.
[19]
Felson,
Marcus
and
Collaborative Consumption:
(MarchApril), 61424.
Joe
L.
Spaeth
(1978),
Commu- nity
Structure
and
A rou- tine activity approach, American Behavioral Scientist, 21
[21]
Time.
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[22]
Support for the sharing economy (PDF). H. M. Trea- sury, Budget 2015, section 1.193.
[23]
[25]
[26]
open
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Boudreau, Kevin; Karim R. Lakhani.
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[34]
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A Global Redesign?
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[41]
[42]
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evolution. opendemoc- racy.net. Retrieved 10 July 2015.
[43]
[44]
Williams-Grut, Oscar (20 March 2015). Silicon Round- up: Blockchain banking to be on
the slate for new reg- ulator?". London Evening Standard. Retrieved 10 July
2015.
[45]
Cohen, Boyd; Muoz, Pablo (2015). Sharing cities and sustainable consumption and
production: towards an in- tegrated framework.
Journal of Cleaner Production.
doi:10.1016/j.jclepro.2015.07.133.
[46]
Afp (2015-02-03). "'Sharing economy' reshapes markets, as complaints rise | Daily Mail
Online. London: Daily- mail.co.uk. Retrieved 2015-03-13.
[47]
[48]
[49]
Natasha Singer and Mike Isaac (May 9, 2015). An App That Helps Drivers Earn the Most
From Their Trips. The New York Times.
Retrieved May 10, 2015.
At rst I thought I
was earning money
[50]
[51]
Andrew Leonard, Youre not fooling us, Uber! 8 reasons why the sharing economy is
all about corporate greed, Salon.com, 2014.02.17
[52]
[53]
Anya Kamenetz,
AirBnb wins New York court victory, but the city still present
challenges for the popular room- nding site, Fast Company and Salon, 2013.09.30
8
14
FURTHER READING
was
an
lower
under- cover
income
Uber
groups.
driver.
[54] Millennials
Salon.com, 2013.09.20
will
not
be
economy
regulated,
muscles
crusade:
Now
Andrew
Leonard,
Andrew
Leonard,
up,
[56]
Libertarians anti-government
Andrew Leonard, Salon
theres
[57]
Evgeny Morozov.
Don't believe the hype,
economy (September 2014), The Guardian (UK)
[58]
The New Boss You Just Like the Old Boss: The
Brand Yourself (2014.05.26), BERNARD MARSZALEK, CounterPunch
[59]
How AirBnB and Uber Cab are Facilitating Rip-Os: The Downside of the Sharing Economy
(2014.05.28), Dean Baker, CounterPunch
the
'sharing economy'
masks
Sharing
failing
Economy
The Internet is not the Answer, an interview with Andrew Keen at the Digital Life Design
(DLD) 2015 Annual Con- ference. Posted on the ocial You Tube Channel of DLD
[62] The Case Against Sharing: On access, scarcity, and trust
(2014-05-28), Susie Cagle, Medium.com
[63]
[64]
[65]
Silicon
Valley
Have
Sharing Economy
Xconomy.
Xconomy.
2016-02-29.
Companies
Retrieved
Sharing
the
Airbnb
Heat
In
Squatters
Con- tractor
Also
Controversy
Swindled
Giana Eckhardt and Fleura Bardhi, The Sharing Economy isn't About Sharing at All (2015-02-09),
Harvard Business Review
[72]
[73]
Afp (2015-02-03). "'Sharing economy' reshapes markets, as complaints rise | Daily Mail
Online. Dailymail.co.uk. Retrieved 2015-03-13.
City
Protest
[74]
Fare
About. Shareable.net.
Retrieved 2015-03-13.
[79] Banking Time.
Retrieved 2015-03-13.
[80]
Our Vision.
Economyofhours.com.
Economyofhours.com.
2014-06-20.
2014-06-20.
[81]
About us.
Economyofhours.com.
2014-06-20.
[82]
[83]
sharedeconomycpa.com.
14
for
Economy.
Further reading
A Policy Agenda for the Sharing Economy, The Ur- banist, October 2012
Kostakis, V., and Bauwens, M. (2014) Network So- ciety and Future Scenarios for a
Collaborative Econ- omy. Basingstoke, UK: Palgrave Macmillan.
All Eyes on the Sharing Economy, The Economist, March 9, 2013
The Twilight of the
Dawn?, The Atlantic, May 7, 2013
2013
Sharing
Economyor
Boston Magazine,
the
May
Adapting to the Sharing Economy, MIT Sloan Man- agement Review, 56(2), 2015, S.
71-77.
Doddle CEO: the value of empty space. Written by
Tim Robinson (CEO of Doddle), Hot Topics, 2015
9
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