Never heard about this term? Sharing Economy…
Lets see what its definition:
“An economic model in which individual’s are able to borrow or rent their assets when not in use” This generally happens when price of owning some asset is too high and asset remain idle most of time.
Uber, one of the successful model of the sharing economy, promotes itself as a platform where anyone can sign up and make an alternative living by giving rides anytime, anywhere. However, in India, Uber’s fastest growing market up until the Delhi incident, the company had attracted predominantly existing licensed taxi drivers instead of individuals operating their own vehicles.
It actually created lots of small entrepreneurs in India
There is one story about Silicon Valley executive who went all -in on this model.
1) He sold his good Car and using Uber/others for transportation.
2) He rented his garage (Now of no use) as a office space to a company.
Now what he is saving money and earning too , Interesting ahh…
A study shows that this model of economy will grow multi-folds in coming years, Think Uber is now around $20 bn company.
Let me list down some advantages of this model:
1) Cheaper Goods and Services
2) Extra Income for Providers
3) New and Better Opportunities
4) Stronger Communities
5) More Flexibility in Work and Life
So, As there are some advantages there must be some disadvantages too:
1) Privacy/Safety Concerns
2) No or Few Guarantees
3) Some rules to to be redefined for associations
This is very short description of Sharing Econmy, you will be hearing this term more frequently in near future, might be our next generation will grow in this kind of model only.
Your comments/Suggestions are welcome