Definition: The sharing of goods and services with other people either free or by fee is sharing economy. It has transformed the whole world and divert the people toward business and created the industries for entrepreneurs.
“The main driving force of sharing economy is technology, as business can now be handled through mobile phones and computers without being physically present in office. Due to sharing economy, it has become easier for new entrepreneurs to search investors for starting up new businesses. New companies trying to enter huge market of business have more access to previous private resources which has reduced overhead for them. Increased number of businesses of same kind has also gave a green signal for high competition, due to which consumers can get more quality at less rates.” (Bylund, P. (2016, January 21). 3 Ways the Sharing Economy Changes Entrepreneurial Opportunity. Retrieved January 11, 2018, from https://www.entrepreneur.com/article/254725)
The advantages of sharing economy are for consumers, entrepreneurs as well as the platform. It has increased number of available jobs as well as the utilization of resources. Not only Skill development but sharing economy has also affected environment and infrastructure. It has successfully brought transparency and accountability in business as well as making sellers more convenient.
“North America is one such country which has been considerably affected by the sharing. The pragmatic effect is that this concept has allowed the companies to gain better outputs with lesser exploitation of resources. This is a great leap in the path of economics resource creation. Moreover, the sophistication of any task can be lessened by making them simple yet effective. Another factor that cannot be overlooked is that increased availability of resources lowers the costs of companies, thus, paving their path to enter the market. Sharing of assets provides a nosedive to the capital which means there are better chances of success, especially at starting stage.” ( Sharing economy. (2018, January 10). Retrieved January 11, 2018, from https://en.wikipedia.org/wiki/Sharing_economy)
Uber is one of the crystal-clear evidence of the success of sharing economy. It is a business model based entirely upon other people resources -private cars which are people for the purpose of locomotion/transportation.
At the end, sharing economy is inevitable. It has entered the to stay. Since it cannot be put on a back burner, efforts should be made to adopt and embrace it.