The Concept of Shared Economy: What’s Behind It

Posted by on Dec 14, 2018 in Sharing Economy | No Comments

In this post, I’d like to talk about the shared economy model and its role in reducing the waste we produce. The concept is very simple: reduce your waste by sharing. Share your home, cars, bikes, tools, clothes, books, electronics, skills and even education with others to decrease environmental effects. You might be aware that our entire ecosystem is under a threat due to increasing temperatures and the technological growth that accumulates the e-waste dumps. Shared economy ensures products are rotated and reused to its complete life cycle, thereby, reducing the effects on the environment. But let’s start from the beginning. Today, I’d like to explain what is shared economy and how you can take part in it.

What Is Shared Economy

The shared economy has many names. You might also know it as collaborative consumption, collaborative economy or peer-to-peer (P2P) economy. Shared economy is an economic model based on providing or sharing access to goods and services facilitated by community-based online platforms. Morgan (2014) sums it up as “, consumers able to get what they need from each other instead of always going to large organizations,”. This includes goods, such as toys and clothes to services such as dog walking or ride sharing. Shared economy revolves around the sharing of underutilized assets in ways that improve sustainability and community.

The shared economy model started as a simple concept, but it has evolved over the past few years into a term that refers to a facilitator of online economic transactions, possibly including business-to-business (B2B) interactions. The examples include co-working platforms, peer-to-peer lending platforms or freelancing platforms. If you’re interested in digging a little deeper into how we should differentiate among the various “new economy” models, Rinne (2017) created a summary list. The list will clarify various economy models under the umbrella of the shared economy.

Watch this interesting discussion about the future of shared economy and how it might affect the individuals by World Economic Forum.

There are many shades of the sharing economy. It started as a simple term which has developed into a complex topic. I would like to focus on the environmental impact of the sharing economy and how we can become active participants in this phenomena. I’ve been living in Vancouver for the last few years where I had a chance to observe the expansion of community-based platforms that allow you to share anything from services and skills to various modes of transportation. I have to confess, it saved me a lot of money and space in my apartment, and most importantly my consumption habits decreased significantly. For that reason, I’d like to show you different ways how to become a part of sharing economy, reduce the negative impact on the environment by sharing and save a buck. Are you excited for my future posts? I sure hope so!

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