Collaborative consumption: Technology makes it easier for people to rent items to each other. But as it grows, the “sharing economy” is hitting roadblocks
WHY pay through the nose for something when you can rent it more cheaply from a stranger online? That is the principle behind a range of online services that enable people to share cars, accommodation, bicycles, household appliances and other items, connecting owners of underused assets with others willing to pay to use them. Dozens of firms such as Airbnb, which lets people rent out their spare rooms, or RelayRides, which allows other people to rent your car, act as matchmakers, allocating resources where they are needed and taking a small cut in return.
Such peer-to-peer rental schemes provide handy extra income for owners and can be less costly and more convenient for borrowers. Occasional renting is cheaper than buying something outright or renting from a traditional provider such as a hotel or car-rental firm. The internet makes it cheaper and easier than ever to aggregate supply and demand. Smartphones with maps and satellite positioning can find a nearby room to rent or car to borrow. Online social networks and recommendation systems help establish trust; internet payment systems can handle the billing. All this lets millions of total strangers rent things to each other. The result is known variously as “collaborative consumption”, the “asset-light lifestyle”, the “collaborative economy”, “peer economy”, “access economy” or “sharing economy”.
It is surely no coincidence that many peer-to-peer rental firms were founded between 2008 and 2010, in the aftermath of the global financial crisis. Some see sharing, with its mantra that “access trumps ownership”, as a post-crisis antidote to materialism and overconsumption. It may also have environmental benefits, by making more efficient use of resources. But whatever the motivation, the trend is clear. “People are looking to buy services discretely when they need them, instead of owning an asset,” says Jeff Miller, the boss of Wheelz, a peer-to-peer car-rental service that operates in California.
As they become more numerous and more popular, however, sharing services have started to run up against snags. There are questions around insurance and legal liability. Some services are falling foul of industry-specific regulations. Landlords are clamping down on tenants who sub-let their properties in violation of the terms of their leases. Tax collectors are asking whether all the income from sharing schemes is being declared. Meanwhile, the big boys are moving in, as large companies that face disruption from sharing schemes start to embrace the model themselves. As the sharing economy expands, it is experiencing growing pains.
The Latest Bing News on:
Sharing economy
- California’s fight over the gig economy underscores the need for labor law reformon January 15, 2021 at 9:57 am
Big tech and organized labor are battling it out—and Californians are getting caught in the crosshairs. Proposition 22, a ballot measure that classified app-based drivers as independent contractors, ...
- This Men’s Rental App Is Rethinking Fashion’s Sharing Economyon January 12, 2021 at 1:30 pm
Seasons is a new rental platform with the best new menswear designers, but its potential goes further than that: It’s also fostering a community and creating space for people to engage with fashion ...
- Charge Enterprises and Naki Power, Europe’s Largest Power-Sharing System, to Bring Power Sharing to North Americaon January 12, 2021 at 4:27 am
The popular portable charger company shares the same vision for the future of mobility and power sharing, with plans to expand reach alongside TransWorld in North America. PARIS, ...
- This fake toothbrush-sharing startup brilliantly mocks all things Silicon Valleyon January 8, 2021 at 2:50 pm
A fake toothbrush sharing startup fooled people on Twitter. Here's why people are laughing — and what it says about the venture industry.
- Gig Economy and Sharing Economy Market to See Major Growth by 2021-2026 : Upwork, Couchsurfing, Uber, Door Dash, Airbnbon January 6, 2021 at 11:30 am
The Gig Economy and Sharing Economy Market has witnessed continuous growth in the last few years and is projected to grow even further during the forecast period of 2020-2026.
- Marsh Launches UK & Ireland Sharing Economy & Mobility (SE&M) Industry Groupon January 6, 2021 at 4:25 am
Marsh, the insurance broker and risk adviser, has launched a dedicated Sharing Economy & Mobility (SE&M) industry group in the UK & Ireland.
- Global Sharing Economy Based On Smart Contracts Market Report 2021: Industry Size, Share, Development, Growth, and Demand Forecast to 2026on January 4, 2021 at 8:26 pm
Final Report will add the analysis of the impact of COVID-19 on this industry." The Global "Sharing Economy Based On ...
- The sharing economy will be worth $335 billion by 2025on January 2, 2021 at 1:53 am
Once worth $15 billion in 2014, the sharing economy is set to grow in value by $320 billion in the space of a decade. Logistics will play a major role in shaping the sharing economy. DHL has released ...
- Sharing Economy Based On Smart Contracts market Analysis Reveals Explosive Growth | Steemit, ShareRing, IBM, Soramitsu, Intelon January 1, 2021 at 6:28 pm
Sharing Economy Based On Smart Contracts market Analysis Reveals Explosive Growth | Steemit, ShareRing, IBM, Soramitsu, Intel []
- China’s Thriving Bike-Sharing Economyon January 1, 2021 at 4:00 pm
In China today, the bike-sharing economy is booming. If you happen to walk around in some first or second tier city in China, you’d find that the sidewalks of streets are filled with yellow or ...
The Latest Google Headlines on:
Sharing economy
The Latest Bing News on:
Peer-to-peer rental
- WSGF To Publish Real Estate Cryptocurrency Survey Results Next Weekon January 15, 2021 at 12:57 pm
(OTC Pink: WSGF) ("WSGF") is developing a cryptocurrency strategy in conjunction with the company's overall fintech short-term rental property acquisition alternative finance business. In conjunction ...
- Blockchain Beyond Bitcoin: Transforming FinTech, Healthcare, And Moreon January 15, 2021 at 8:23 am
The origin of blockchain dates back to 1991, when researchers Stuart Haber and W. Scott Stornetta outlined a system to document timestamps that could not be altered. However, it is most widely known ...
- How I got dream £355,000 two-bed house WITHOUT getting a mortgageon January 15, 2021 at 4:42 am
EMPLOYED homebuyers are turning to investing in new property schemes as a way to move up the property ladder. Tom and Stef Lee, both 31, and daughter Iris, 3, had outgrown their ...
- 9th Circ. Mulls Undoing Car-Share Co. Turo's LAX Injunctionon January 13, 2021 at 6:15 pm
A Ninth Circuit panel on Wednesday questioned whether there was enough evidence showing that online car-sharing platform Turo Inc. has contributed to Los Angeles International Airport's notorious ...
- WSGF Vaycaychella Fintech App Could Fuel Post Vaccine Real Estate Marketon January 13, 2021 at 5:43 pm
WSGF has recently entered and set its primary focus on the short-term vacation rental market through the acquisition of Vaycaychella. Vaycaychella plans to beta launch a peer-to-peer (P2P) application ...
- Want To Drive a Ford Bronco Sport Before Your Friends? Rent One on Turoon January 13, 2021 at 12:15 pm
Bronco Sports are finally hitting the road, but there might be a much easier way to get your hands on one than by futzing around with a dealer: Turo.
- RVing on a Budget: The Biggest Costs and How to Saveon January 11, 2021 at 11:00 am
It’s a great, cheap way to travel, or even a low-cost alternative for living full time. What you may not know: RVing costs can ...
- Tillou: Supporting Small Business in Orange, a More Balanced Approach to STRson January 10, 2021 at 11:49 pm
Short Term Rentals (STRs) operate across an astonishing 220+ countries worldwide but are, by design, small and local home-based businesses. They provide affordable lodgings for visitors and generate r ...
- Ejaro raises $850,000 seed roundon January 10, 2021 at 1:04 am
Saudi Arabia-based peer-to-peer (P2P) vehicle sharing platform Ejaro, has raised a $850,000 (SAR 3.2 million) seed round, led by ...
- Car Rental Startup Turo Plans 2021 Public Offeringon January 4, 2021 at 1:43 pm
Car rental website Turo is planning to pursue an initial public offering in 2021, either traditionally or via a merger with a blank-check corporation.