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Are you looking at how your business could transform to benefit from the sharing economy and stay relevant to your customers?
Are you looking at how your business could transform to benefit from the sharing economy and stay relevant to your customers?

Get ready to share: The new sharing economy

Original content by ChangeDriver

Over the past 10 to 15 years, a new economic system has entered the world stage. It’s the first since capitalism and socialism: the sharing economy.

The sharing economy is transforming the world of business by changing the relationship between customers and products and services. People are shifting from owning things, like cars, to thinking of automobiles as a service on demand.

One of the best-known sharing economy businesses is Uber, the ride-sharing service. Uber made it big by attracting significant investment from investment banks such as Goldman Sachs and Morgan Stanley, and large fund managers such as BlackRock during the sharing economy’s first decade.

By using a mobile application and a network of vetted drivers, Uber satisfies consumers’ transportation demands while providing an arguably better user experience. In New York City alone, there are roughly 4.5 times more Uber drivers than yellow cabs. This has caused the price of owning a taxi cab in New York City to drop from $1 million to less than $200,000 today.

The other well-known sharing economy success is Airbnb. After emerging in the marketplace in 2008, the online platform for accommodation rentals leads the world’s top hoteliers in the number of check-ins by guests and places to rent. Unlike traditional hotels, Airbnb establishments are owned and run by individuals, so profits are shared across a huge network.

In just over 10 years, the sharing economy has turned the hotel and transportation industries on their heads. What’s next?

Are you looking at how your business could transform to benefit from the sharing economy and stay relevant to your customers?

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