Unstoppable Rise of the Share Economy
Unstoppable Rise of the Share Economy
Share economy is an economy where rent out whatever they have and they are not using at the moment. In this kind of business they able to net in some amount of money either daily or monthly according to the agreement agreed upon. This business has grown to be a formidable force that is very difficult to ignore according to the article. People are netting in from the extra they were not using before and now in a position to make a lot of cash from an asset previously idle. Different success stories ranging from the unbelievable like bikes and tents have managed to earn the owners a lot of money even if it is $10 a day or night. This is very worthwhile when considered that they were previously idle and could not generate even a dollar for the past uncountable year. Share economy is definitely a billion dollar business as people begin realizing and adopting it. People have a lot that they no longer use and thus contribute to its uptake. For this reason, it is an investment opportunity to invest in and trade in good that have once been used. Many are considering it and realizing its enormous potential as asserted by (Bataille & Hurley, 1991).
Our tradition is used to an economy where if it were a rental house, people would go and construct a house where they could charge people some amount after a certain period of time. According to (Eichengreen, 2011), this type of economy utilizes the places where maybe children have grown and moved out so they have now been turned into a revenue source at a cheaper price. People travelling will no longer consider expensive hotel rooms. They will prefer this kind of setting because it is a little cheaper. A price like $70 per night compared to triple or even more hotel room prices. In the past people were used to buying things that they might not use it every day. They were spending a lot of money when in fact they just needed that particular thing for some hours. They can now be able to rent it from someone who isn’t using it at that particular time and save a lot of money. The ever changing economy has also assisted it in shaping its economy in the long run. People do not have enough money and they are not willing to spend the little they have on a course that at long last won’t be worthwhile.
From this rise of share economy, it has not augured well with the traditional commercial business people who normally deal in brand new things. They are slowly losing and their profit margins are also slimming though they won’t diminish at all. People are beginning to adopt second hand things that are rented only when needed. There has also been a rise in the commercial industry that deal with this rental goods and belongings. Some companies are emerged that specifically deal in these goods. They are able to advertise and market them at fee. Most do some percentage from the final return that the customer is willing to pay. Traditionally, this hasn’t been the case. It is proofing to have disrupted the financial market to some point (Kruse, 2010).
Shared economy is creating value for consumers. Consumers who once bought the good or even spent money for other purposes are now able to make some more money from them. This was not possible in the past and for now; they have found a way to make some more money from it (Walljasper, 2010). Take an instance of someone who constructed a bug house way back then when they still had kids and many people around. Now that their children have grown and have their own houses, they have a lot of space in the house. They can economize this space and make extra cash from it. This is adding more value since they originally planned for other things but now they can still make some extra cash from it. In terms of completely replacing the market, I do not think it really will. The old market must always be there so that it can provide these goods. They will only be reduced in quantity but their value will still be held up high. The people looking to acquire the new goods so that they can rent them out when they don’t need it will have this old market. The people selling in these stores will have this market to explore and thus the old market will be supported and not come to an end.
In conclusion, shared economy is the way to the future. The way the economy is as per now will not allow the acquisition of more things. It is limiting people to acquiring the services they need from people that already have them. They people who also established them are finding an investment opportunity where they can make money from means they earlier thought were not possible (Bataille & Hurley, 1991). Though this is the way to the future, it is only limited to the people who already have made an investment and they want to benefit from it. Carefully understanding it and using it will bring value to the existing market and the people that use them. The owners will benefit from it and those renting it will have them at a cheaper price. This leads to the good of everyone and the market at large.
Bataille, G., & Hurley, R. (1991). The accursed share: an essay on general economy. New York: Zone Books.
Eichengreen, B. J. (2011). Exorbitant privilege: the rise and fall of the dollar and the future of the international monetary system. Oxford: Oxford University Press.
Kruse, D. (2010). Shared capitalism at work employee ownership, profit and gain sharing, and broad-based stock options. Chicago: University of Chicago Press.
Walljasper, J. (2010). All that we share: how to save the economy, the environment, the Internet, democracy, our communities, and everything else that belongs to all of us. New York: New Press.
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