The sharing economy is an economic model in which individuals are able to borrow or rent assets owned by someone else. This model is also referred to as collaborative consumption, the gig economy, or peer-to-peer economy.
In the sharing economy, the sharing of resources is facilitated through technology which is a platform in a network. The sharing economy enables individuals to rent assets owned by someone else. The sharing economy is thought to be related to the gig economy that is platform-mediated employment.
This is something that is not new. People have always shared goods and services. What is new is that the internet and mobile technology have created a platform that makes it easier for people to share.
Understanding the Sharing Economy
When you want to a share a car, a house, or a bike, there are a lot of tools to help you do it. But, what exactly is the sharing economy? At its core, the sharing economy is all about using technology to match people who have with people who need. As a result, it has also become known as the peer economy. In the sharing economy, it’s all about people.
If you’ve ever had a need or want that was fulfilled by a stranger, you’ve engaged in the “sharing economy.” It’s a loose term for a variety of business models, including car-sharing, peer-to-peer lending and couch-surfing.
These services are designed to make it easier for people to rent, borrow or swap goods and services, using the Internet to find people with things and people with needs. The sharing economy has actually been around for a while, though it’s only in the past few years that it has become a hot topic in the media.
The Sharing Economy is Evolving
In the 1970s, futurists predicted that the world would be run by a collection of supercomputers called the “information grid.” Back then, it seemed like a logical step.
Computers were getting faster and more powerful every day, and we were using them to solve more problems and create better products. But it turns out that the future wasn’t set in stone.
That’s because the sharing economy is taking shape all around us. It’s transforming the way we work, and the way we live. By cutting out the middle man, the sharing economy is lowering costs and making products more readily available.
Cities have traditionally been built around the idea of individual transportation, with shopping centers and housing developments built around people’s need to drive.
Today, with the idea of the sharing economy, that’s changing. Cities are becoming more and more walkable, and more and more people are starting to think about ways they can contribute to their communities.
Current Criticisms of the Sharing Economy
There is no question that the sharing economy has changed the way we live. Homeowners who once rented out their extra rooms on Airbnb and VRBO now rent out their entire houses on Airbnb. Drivers who had cars to get to work now drive for Uber.
Airbnb hosts who once rented out a spare room for a few nights a week are now renting the whole house out for weeks or months at a time.
In the sharing economy, the emphasis is on sharing. The companies are trying to help you share your house, your car, or your ride.
As the sharing economy grows in popularity and market size, it also comes under attack by those who don’t believe it is a legitimate way of doing business or that it is a major cause of the economic downfall of the American dream.
Treatment of workers as independent contractors and not employees
As the world moves forward in the 21st century, the workforce continues to evolve as jobs are lost or created. In the United States, the changing employment environment has played a big role in how workers are treated.
As of 2016, the number of workers classified as independent contractors is growing in the United States. At the same time, the number of workers who are employees has declined by almost half.
When a company hires independent contractors, not only does it save money by not paying payroll taxes, it also saves money by not providing benefits, like health insurance, or paying costs like workers’ compensation and disability insurance. On the whole, workers themselves tend to prefer being treated as independent contractors.
However, the new regulations should encourage companies to reconsider whether they are really doing the right thing for their workers best interests, or whether the real answer is to start treating them as employees, with all the rights and benefits that come with that.
Does the Sharing Economy Do Any Good?
The sharing economy is not something new. Even in ancient times, people shared with each other. The economy of Greece in the 5th century B.C. was a sharing economy. In Athens, people shared their houses with visitors, the potters shared their wheel with others to make a pot, and the shoemakers shared their tools with apprentices.
In today’s economy, we share our cars, our clothes, and even our food. We see it as a way to save money, but what effect does it have on the environment? When we share a car, we are taking cars off the roads, which is good for the environment. We are taking cars like the Nissan Leaf and the Chevy Volt, which use electricity from renewable sources,
The sharing economy has been touted as a solution that will bring down costs for consumers, while at the same time doing some good for the environment.
But does it? The Sharing Economy is an economic model of peer-to-peer exchange. It’s often associated with the lessening of global carbon emissions, thanks to an increased use of shared services, such as cars or accommodation, and the reduction of material waste.
As we know, the sharing economy has grown rapidly in the past several years. This is not surprising given the fact that our lives have become increasingly busy and we no longer have the time to store and maintain extra cars, bikes, etc. However, the sharing economy is not just a convenient service. It has truly helped to reduce our carbon footprint and benefit the environment. In fact, according to the Center for Sustainable Energy, the sharing economy has the potential to reduce overall energy consumption.