Why Sharing Economy Seems Lucrative?

 

In the perspective of today's fast-paced and technology-oriented world where large majority of people, institutions, and businesses are connected on 24/7 basis through vast global networks of internet, undersea cables, satellites, communication towers, websites, e-commerce, Cloud Computing, e-store, Internet of Things, and other powerful digital applications, so, the concept of sharing economy is gaining momentum with the passage of time.

This excellent collaborative mechanism provides the viable technology supported platforms to all those people who want to share their tangible assets and services which remain underutilized most of the time, so, by renting different assets and services like car, house, office, equipment, boats, clothes, delivery services, online services, logistic enterprises, warehouses, human skills, and more options on short-term specified period of time, thus, as a good result, people get lucrative benefits in the form of periodic rental payments, tips, and commissions which increase living standards and level of prosperity among participating economic agents.

Organized collaborative platforms whose most of the operations are based on latest online applications, ensure maximum capacity utilization of their idle resources, underutilized assets, and various types of professional services providing to different communities, areas, businesses, and social sectors.

Projection

According to the study, Sharing Economy market size was valued at US$ 113,000 million in 2021 and is expected to expand at a compounded average growth rate of 32.08% during the forecast period, reaching US$ 600,000 million by 2027. 

The above cited projection indicates increasing pie of sharing economy on global level giving a unique model to work for all activities such as trading, businesses, on-demand works, house and office sharing, and lots of on-demand temporary services possible under this organized working model. 

Employment Generations

Various economic participants working under the vast networks of technology-based mutual cooperation mechanism which all combining make sure optimum level of comfort, peace of mind, saving of precious time, reduction in cost of living, enhanced efficiency, so, whenever you hire a quick ride from Uber or arrange short term homestay through Airbnb, or get airline tickets from Booking.com, and get freelance jobs from gig economy, so, all these well-organized activities provide lucrative businesses to the operators in the form of commission and tips, generate employments, and save valuable time and money of people.  

Smart Offices

There are lots of startups and small companies which face space constraints, have lower revenue streams, and experience mismatching in their operational costs and consistent inflows of income, so, such types of organizations can benefit from office sharing mechanism, and consequently, they curtail maximum amount of cost of doing business in the form of less rental payments on their need-based projects.

Time and Money Saving

Shared economy is an effective platform and technology-oriented set of tools which not only provides workable practical solutions in prompt delivery of goods and services, but this also saves precious time and valuable money of buyers and sellers. 

People save their time and money whenever they use established applications for obtaining different goods, services, and ideas at their doorsteps and electronic devices such as car riding, airline tickets, booking for hotel stay, temporary homestay, buying of clothes, reselling of stuffs, grocery shopping, renting office space, freelancing services, online tuition, arrangement of carpenters and plumbers, and many more options people can avail, so, as a consequence, buyers and sellers are happy to interact in a peaceful manner. 

Under shared economy, all what you do is to use relevant online apps for getting products, services, professional advice, and online solutions in less amount of time at lower cost.

 

Enhanced Collaborative Efficiency

To maximize level of efficiency and productivity in all areas of society, mutual cooperation is the right answer because in today's world every produced assets and high human skills are not in abundance and most of the time these valuable assets and human based skills remain unutilized, therefore, sharing economy comes to play its major role in bringing together all economic agents whether they are sellers, distributors, creators, traders, writers, and buyers under one organized umbrella which combining enhance total level of efficiency, productivity, and effectiveness of the societies.

Importance of Smartphones and Websites

In today's modern digital economy, lots of works are performed just click through options which are available on e-commerce based websites, digital stores, and more importantly, by using powerful functionalities of smartphones, so, whether you hire a car, or get temporary homestay, or sell your used stuffs, or get delivery of groceries, or secure freelancing jobs, or buy airline tickets, or make hotel arrangements, or obtain home repairing services, so, for all types of on-demand online secured services and deliveries, you cannot ignore the importance of smartphones.

For the sake of prompt convenience, you always need to use your smartphone, tablet, laptop, personal computer, and more notably, website that has inbuilt efficient online payment systems connected through banks and communication avenues with the support of powerful medium of internet. 

You can say that the working mechanism of shared economy is deeply interconnected through world wide web which never sleeps, so, penetration ratio of smartphones and importance of websites have increased manifolds because these powerful electronic devices and applications instantly create enormous business avenues and job opportunities worldwide.

Safety and Privacy Issues

All economic sharing platforms are based on uninterrupted internet connections and there may be concerns for hacking of personal data of the users and service providers if the data packets are not encrypted and properly protected. 

Vehicle riding apps record all online tracking of the riders and their regular journey points, likewise, other home sharing applications collect all online personal data of people, so, in case proper online safety measures are not in place and rendered vulnerable for cyber hacking, then it can create financial and reputational losses for users.

On the other hand, there are also regulatory issues in documenting temporary hiring or services and calculations of taxation on income earned. 

Final Thought

Despite few drawbacks which can be resolved by the regulators, the dynamic concept and strong practical application of 'Sharing Economy' seems lucrative from the point of businesses, institutions, and billions of people because this platform ensures a win-win situation for all parties involved in renting, selling, and buying products, services, and ideas on specified short or stipulated period of time.

Hope you have enjoyed this post! 😊