HOW SHARING ECONOMY CHANGES TRADITIONAL INDUSTRIES
What is sharing economy?
The concept of sharing is not new, as they lived in a primitive society. Libraries, cinemas and rental offices existed long before Airbnb and Uber, but with the development of the Internet and mobile technologies, sharing has become much easier and more convenient.
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At the heart of the sharing economy is the idea that people can benefit from products and services that they don’t currently use.
It is not necessary to constantly possess an item to use it. One PwC survey respondent said, “I don’t need a drill, I just need a hole in the wall.”
How the sharing model affects the global economy
The sharing economy, or the economy of joint consumption, is one of the most actively developing business trends in history. Since 2010, investors have invested more than $ 23 billion in sharing startups.
A few facts:
In 2017, the global volume of the sharing economy was $ 18.2 billion. By 2025, it can grow to $ 335 billion (PwC).
By 2025, half of the global economy will be involved in the sharing model (McKinsey).
Key areas for the development of sharing: transport, travel, finance, personnel search, streaming video and music (PwC).
The sharing economy employs 162 million workers in the United States and Europe. This is 20-30% of the total workforce in these regions (McKinsey).
The total capitalization of Airbnb ($ 31 billion) and Uber ($ 72 billion) is $ 103 billion. If these companies were one country, such a state would be in 38th place in the list of the richest countries.
How does sharing change specific industries?
The sharing model is effective for business because it reduces downtime and reduces storage costs. Moreover, rental income exceeds the cost at which a one-time sale could be made.
For the user, sharing is a way to save and not litter space.
“I don’t need a drill, I just need a hole in the wall.” 0
The idea of paying only for the time the item is used is very attractive to the consumer. And if the old companies do not adapt to the new model, they may lose their leading position.
The advent of Uber is a prime example of how the sharing economy is blowing up a traditional industry.
In New York alone, Uber drivers are 4.5 times more than regular taxis. As a result, the cost of a taxi license in New York fell from $ 1 million (in 2015) to $ 200 thousand.
The transport industry as a whole is one of the most developed areas of sharing.
“I don’t need a drill, I just need a hole in the wall.” 1
In addition to the usual car-sharing, sharing of bicycles and scooters, joint trips (Blablacar), there are more unusual ones – from sharing parking spaces in Justpark (USA) to private Flyxo aircraft and SmartBoating yachts.
According to a PwC study, Americans who are familiar with the sharing economy believe that it makes their lives more efficient, and the world as a whole is greener and kinder by interacting with other people instead of companies.
But for now, the main reason is money. 86% of the survey participants admitted that sharing makes their life more accessible, 81% are sure that things are cheaper to share than to own them.
At the same time, accessibility, convenience and efficiency are the key factors that influence the purchase decision. It is not surprising that sharing platforms capture the niche of consumer goods.
The largest platform for P2P sales (peer-to-peer, from user to user) is eBay, its market value is $ 36.8 billion. The next largest is the vintage-design Etsy ($ 5.2 billion) and rental of exclusive clothing Rent the Runway ($ 800 million).
Regional popular sites for sale and exchange are OLX in Ukraine, Avito in Russia and Kufar in Belarus.
Where else are things rarely used
Spinlister: sharing of bicycles, surfboards and winter sports equipment.
Happy Tree: Christmas tree sharing in Germany. After the holidays, the trees in tubs return to the nursery until next year.
UmbraCity: Per Minute Umbrella Rentals in Vancouver.
BookBox: a library for companies in Kiev. You can rent business and fiction books in different languages.
Professional and personalized services
Workers can also be fumbled. On freelance platforms and platforms for searching for performers, there are any specialists – from builders to accountants.
The largest representatives of this sector of the sharing economy are the international freelance marketplace Fiverr, UpWork for creating online teams and TaskRabbit, where you can find helpers for homework.
Healthcare revenues are expected to reach $ 8.7 trillion in 2020. Venture investors are actively investing in medical digital startups. It is expected that medicine will become a new niche for the active development of sharing.
The sharing model will solve the health problems associated with the lack of resources and the high cost of equipment, which as a result is idle 58% of the time.