Unfolding the Power of Sharing

Sharing is a true symbol of human willingness to help each other and enjoy a sense of belonging and social inclusion.

Unfolding the Power of Sharing

All across the world, a new wave of peer-to-peer, collaborative consumption is shaking up established business categories. Whether by borrowing goods, apartment or house renting, crowdfunding, or providing micro-skills in exchange for products or services, consumers are showing a substantial appetite for the gift and sharing-based economy.

Companies like Uber and Airbnb have taken the world by storm and boosted the sharing economy’s rise and development. But what is the sharing economy? Where did it come from, and where is it heading?

Sharing Economy Definition

The sharing economy, also known as collaborative economy or peer-to-peer-based sharing, is defined as a concept that highlights the ability and the preference of people to borrow or rent goods rather than buy and own them. However, trying to explain exactly what the sharing economy is would not do the term justice. In general, it is used as an umbrella term for various services, products, and apps.

For instance, you can cycle around town on a Lime bike and go home in an Uber. You can leave your pet to a specialized pet-sitter from Rover and order your food from Deliveroo. These examples show us how, from the modern consumer’s point of view, sharing and using is more important than having. The goal is to actively participate in reducing environmental expenses and fight against waste and overproduction.

How Did the Sharing Economy Grow So Quickly?

The biggest driver behind the growth of the sharing economy is technology. Numerous platforms, apps, and distributed networks have made it possible for people to share and inspire entrepreneurs to build their businesses around this economic model.

Ming Hu, professor of business operations and analytics at Rotman School of Management at the University of Toronto, says: “These apps have brought underutilized resources online and efficiently matched them to demand.” Young people, such as Millennials and Generation Z-ers, are more comfortable borrowing and using goods than owning them.

Energy also seems to be a sharing opportunity. Community microgrids enable access to renewable energy on a small scale, sharing the cost among users and selling surplus to regional and national grids.

The Effects of the Sharing Economy on the Macro Scale

The sharing economy keeps on growing and amassing enormous wealth, with some researchers expecting it to grow to more than $300 billion by 2025. Convenience, trust, and a sense of community are all factors for the adoption and further development of the sharing economy. Thanks to consumers’ willingness to try out various mobile apps, there are fewer obstacles for building brands from a company’s point of view, reducing waste, earning money, and enjoy

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