Introduction to Sharing Economy
Author: Vignesh Srinivasan
1. What is Sharing Economy?
Sharing economy, also called the Collaborative Economy. It all started like an epiphenomenon, but the collaborative economy has become a deep socio-economic trend that is fundamentally changing the way we live our lives and it appears to be here to stay. Not only because sharing is innate to humanity but also because new technology allows for new ways to share. It’s contributed to some of the most impactful innovations the world has seen in the last few years, and as it continues to grow, it will remain an influential component of the global economy.
2. What does the Sharing Economy constitute of?
The definition of sharing economy given above can be decomposed in three constituting parts.
First, the sharing economy is about peer-to-peer exchange or, more precisely in this context, consumer-to-consumer interaction.
Second, the sharing economy involves temporary access either by borrowing or renting.
Third, the sharing economy is about a better use of otherwise underutilised physical assets.