Examples, Pros & Cons of Sharing Economy

Author: Vignesh Srinivasan

24/05/2018

1. What are some examples of Sharing Economy?

  • Ride Sharing (For e.g. Grab, ComfortDelgro)

  • Home sharing allowing different consumer to use an entire car or house at different times (For e.g. Airbnb)

  • Sharing can also entail access to parts of a good (e.g. carpooling where a peer is granted one seat in a car)

  • Bike Sharing (For e.g. Obike, ofo etc.)

2. What are the benefits/advantages/pros of being a part of the Sharing Economy?

  • Sharing economy opens up opportunities for people to work for themselves full time or make extra money on the side. It is creating vast numbers of flexible jobs that help the economy.

  • Sharing Economy from a retail perspective, it becomes clear that a number of categories are better suited to the concept than others

  • This offer is especially enticing to millennials, as it leaves them with more spending power and choice, without having to commit to full, on buying the item.

  • Intention to participate in the Sharing Economy is increasing, driven by a willingness to make money but also to do good for the environment and to build communities.

3. What are the cons/disadvantages of being a part of the Sharing Economy?

  • Trust remains the critical enabler of the sharing economy and will naturally grow as the sector expands and people become more comfortable with the wide range of products and services that the sharing economy captures.

  • The impact of the sharing economy on legal services is only starting to play out. But it looks certain to drive significant change in a profession that has seen little fundamental change to business models for many years. It’s a development that no firm can afford to ignore.

  • HIPAA/Privacy concerns, trade secrets confidentiality, transference of licenses to own specific assets and to perform operations, legal liability: who is responsible for misconduct during a sharing situation?

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