Sharing Economy

Naomi Fernandez, Fernando Fernández Castillo,

Carolin Marie Gaiser, Micaela María Nanni
 Agenda
1. Definition
1. Social Impact
2. Growth of the sharing economy

2. Sharing Economy Platforms

3. Positive Aspects of Sharing Activities
4. Policy Gaps and Regulatory Issues
5. Comparison of the Sharing economy
1. in Europe
2. in Latin America
3. in Argentia
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 1. Definition

➔ Term created in 1978 (P2P or Collaborative consumption)

➔ Digitally connected (Social Commerce)
➔ Underutilized physical assets
➔ No transfer of ownership
➔ Meets a variety of consumer needs
➔ Based in economic transaction

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1.1 Social Impact

➔ Trust - it’s your property

➔ Sharing, new consumption
➔ Fear of ownership
➔ Convenience for everyone

Figure 1

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1.2 Sharing Economy is growing

➔ Strong network effects (Boosts markets for service suppliers)

➔ Accelerated growth due to Globalization and advanced technologies

➔ P2P transportation leads revenues

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 2. Sharing Economy Platforms

Peer-to-peer lending:
• Lend and borrow money
• Lower interest rates
• Investors earn solid returns
• It could compel banks to be more accommodating

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Crowdfunding:

• Connects people who need money with those willing to provide it

• Recipients aren’t always expected to repay the funds (grants)

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Apartment/house renting:
• Connect homeowners with people who need a place to stay when
they’re traveling

• Hosts set the price per night and the available dates

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Carsharing/Ridesharing:
• Some benefits of car ownership such as easy access to a city without
having to rely on public transport
• Few of the drawbacks such as paying for gas, insurance, and
maintenance

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Coworking:
• Lets you share the cost of office rent, utilities, storage, mail, and
office supplies with other professionals
• Fee based on the amount of time

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Reselling and trading:
• Let you buy, sell and sometimes trade new and used goods without
face-to-face interaction

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Niche services:

• Some sharing economy platforms offer services that are extremely

useful to smaller slices of the population

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Knowledge and talent sharing:
• Do you have a skill or knowledge base that you’re not using in your
day-to-day job? The sharing economy can help

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 3. Advantages of the sharing economy:
1. Cheaper goods and services
2. Extra income for providers
3. New and better opportunities
4. Stronger communities
5. Low entry barriers for workers
6. Less worry about valuable possesions
7. More adaptable businesses

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 4. Policy gaps and regulatory issues

➔ Regulations are tailored to coordinate B2B or B2C transactions

➤ not applicable to C2C market

➔ some governments have recently passed laws and regulations that apply to sharing-
economy transactions but the majority has not

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Disrupting established markets

➔ Sharing platforms challenge the markets of incumbent businesses by

offering unregulated products at more competitive prices

➔ directly compete with established businesses in the same market

➔ Service providers on the platforms don’t comply with regulations,

circumvent taxes and permissions

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Sharing activities vs. commercial activities

At which point should the

occasional and paid
renting of privately owned
resources be considered as
commercial activity ?

Figure 3 Figure 4

Consequence: Businesses exploit loopholes in regulatory framework

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Insurance and Liability

To what extent is the sharing

platform liable for property Company who runs the online marketplace
damages or the security of the does not provide service directly
service provided?

Problems :

Liability and risks mainly lie on users of the platform

Sharing activities do not fit into existing insurance frameworks

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Increase in precarious work

➔ Trend towards alternative working

arrangements

➔ uncertainty about exact legal status and

rights of workers

➔ arrangements intended to avoid labour

laws, minimum wages,working
conditions, benefits Figure 5

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 5.1 Sharing Economy in Europe
Based on recent research (March 2016) in the EU

● 52% of respondents are aware of the services offered by the collaborative economy.
● 17% say that they have used these services.
● 46% have never heard of collaborative platforms.
● 35% have heard of these platforms but have never visited them.
● 4% have been on one or more of these platforms and paid for a service once.
● 9% use the services of these platforms occasionally - once every few months.
● 4% use the services of these platforms regularly - at least every month.
● Men are more likely than women to use the services (21% vs. 15%).

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 Main
● benefits
The access to services is organized in a
more convenient way.
● It is cheaper or free.
● The ability to exchange products or
services instead of paying with money.
● It offers new or different services.
● Other (SPONTANEOUS).
● None (SPONTANEOUS).
● Don’t know.

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Main problems

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 5.2 Sharing Economy in Latin America
Main aspects

● It is seen as a resolution of latent problems in highly regulated markets.

● It has an impact on existing industries that can not act under similar conditions because
of regulation.
● Increase in the offer at a better price.
● The most developed market is Brazil: young companies that operate mainly in
internationally well-known areas. Following the path of large companies so that this type of
economy is understood and spread more quickly in the region.
● Optimism towards future growth in the market is great. The formulas have already been
tested in other areas, and if you manage to break the barriers of distrust and ignorance, the
future is bright. 36
Main limits of
growth
● 60% Unawareness of the type of business.
● 43% Access to financing.
● 42% Distrust of customers.
● 23% Regulation.
● 20% Access to technologies by customers.
● 17% Access to payment systems by customers.
● 16% Competition of traditional companies.
● 7% Others.
● 6% Access to foreign markets.

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 5.3 Sharing Economy in Argentina
Example given: Airbnb

● 22 thousand available accommodations, half located in the city of Buenos Aires.

● In 2016 more than 338 thousand travelers found accommodation through this method in
the country.
● It helped to democratize the income generated by tourism by consuming a wider range
of neighborhoods in the destinations they visited.
● The platform helps boost the local economy by attracting more travelers, for longer
periods and neighborhoods that traditionally benefit less from tourism.
● In the City of Buenos Aires, there were 150,000 guest arrivals in 2016. The consequent
economic activity was 1706 million pesos, a sum that includes the income of the hosts.

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 Conclusion
● We can for sure say that the globalization has contributed to the growth
of Sharing Economies.

● Sharing Economies are changing the structure of the entire market.

● Nowadays, a new understanding of the consumer it is required , to

successfully drive this new , upcoming model.

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Discussion
 Questions to discuss
➔ What are your experiences with sharing platforms , which ones have you used ?

➔ Is it still “sharing” when a monetary transaction is involved ?

➔ Does the sharing economy create new value or is it only disrupting existing
businesses?

➔ What does the sharing economy mean for emerging growth markets: business
innovation, urbanization, inclusive growth, sustainable consumption and well-being?

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List of Figures
Figure 1: http://www.vegaspubcrawler.com/wp-content/uploads/2016/01/Melbourne_City_Bikes.jpg

Figure 2: https://ec.europa.eu/growth/sites/growth/files/collaborative-economy.png

Figure 3: http://clipart-library.com/image_gallery/71409.png

Figure 4: http://clipartix.com/wp-content/uploads/2016/05/House-for-sale-clip-art-free-clipart-images.png

Figure 5: https://sociable.co/wp-content/uploads/2017/03/gig-economy-2.png

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