14 Facts About Sharing economy

In capitalism, the sharing economy is a socio-economic system built around the sharing of resources.

The sharing economy is sometimes understood exclusively as a peer-to-peer phenomenon while at times, it has been framed as a business-to-customer phenomenon.

Additionally, the sharing economy can be understood to encompass transactions with a permanent transfer of ownership of a resource, such as a sale, while other times, transactions with a transfer of ownership are considered beyond the boundaries of the sharing economy.

Jemielniak and Przegalinska note that the term sharing economy is often used to discuss aspects of the society that do not predominantly relate to the economy, and propose a broader term collaborative society for such phenomena.

Sharing economy is a model that is adapting to the abundance of resource, whereas for-profit platform capitalism is a model that persists in areas where there is still a scarcity of resources.

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The sharing economy provides expanded access to products, services and talent beyond one-to-one or singular ownership, which is sometimes referred to as "disownership".

In commercial applications, the sharing economy can be considered a marketing strategy more than an actual 'sharing economy' ethos; for example, the company Airbnb has sometimes been described as a platform for individuals to 'share' extra space in their homes, but in reality the space is rented, not shared.

In many cases, the sharing economy relies on the will of the users to share, but in order to make an exchange, users have to overcome stranger danger.

Beyond trusting others, the users of a sharing economy platform have to trust the platform itself as well as the product at hand.

Some experts predict that shared Sharing economy could add between €160 to €572 billion to the EU Sharing economy in the upcoming years.

Christopher Koopman, an author of a study by George Mason University economists, said the sharing economy "allows people to take idle capital and turn them into revenue sources".

New York Magazine wrote that the sharing economy has succeeded in large part because the real economy has been struggling.

Andrew Leonard, Evgeny Morozov, criticized the for-profit sector of the sharing economy, writing that sharing economy businesses "extract" profits from their given sector by "successfully [making] an end run around the existing costs of doing business" – taxes, regulations, and insurance.

Local economic benefit of the sharing economy is offset by its current form, which is that huge tech companies reap a great deal of profit in many cases.