Sharing Economy is the peer to peer based activity of sharing assets, products, services in an online-based community. It enhances the usability of underused assets and expands their lifetime in the sharing economy platforms.
Benefits of sharing economy
As the sharing economy ideas become increasingly prevalent because of the benefits of this platform are innumerable
New inventions and modern technologies like Big data, AI, Machine learning algorithms are discovering to advance the progress of the sharing economy that helps in reaching a wider audience.
The sharing economy has the ability to provide a more personalized and unique experience for users on the basis of their behavior on the platform. It helps to increase user engagement and retention rates in those platforms.
Above all, there are several business models in the sharing economy like commision, subscription model, listing fee, lead generation fee, and freemium service. Above all, It helps in earning steady revenue and helps them to scale.
For more information regarding the business model of online marketplaces, refer to this post.
Is sharing economy safe?
In the sharing economy, users share their individual properties, spaces, accessories, equipment with unknown people for a limited time. In this mode of peer-to-peer sharing, trust and security act as the driving force to bring in more users to the platform. Hence, it is important for every sharing economy company to protect its platform with tamper-proof security giving no room to illegal activities.
The most common way used by sharing economy is verifying the user’s email address and phone numbers with a one-time password(OTP) but the consumers no longer like to use this verification method anymore as it is less secure.
Biometric authentication, the most welcoming technology used in many industries. Now it’s time to enter sharing economy platforms for user authentication frictionlessly. It is even more seamless and secure too.
In addition, Sharing economy platforms requires new users to verify their identity by submitting identification documents online. Hence, Identity verification is also important because it helps for both check-in and check-out process to avoid fraudulent transactions.
Similarly, many sharing economy platforms are actively researching to provide secure login methods for seamless user experience, keeping the data and transactions more secure. By providing these kinds of security purposes, users are extremely satisfying their needs and it automatically builds trust.
Countries welcome Sharing Economy
The sharing economy is estimating to grow from $14billion to $335 billion by 2025. However, this estimate depends on the high-level growth of the sharing economy.
In the US, the sharing economy is used by 44.8 million users and 162 million people providers on sharing platforms. The user’s growth will expand upto 86.5 million by 2021.
The sharing economy in China is already impressive in growth. China’s sharing economy is using by 700 million people and 10 million users were increasing. It has already reached $763.5 billion, 47.2% has been increasing and expecting to grow more than 30% from the current value.
Uk is encouraging the sharing economy in many ways. In terms of revenue, total transactions will take place at 140billion by 2025 and this is expected to grow 60 percent.
The sharing economy in Europe is tipped for rapid growth. According to the survey, the expected growth will be worth €570billion in the upcoming years.
Future of sharing economy
The sharing economy is necessitous because underutilized assets are abundantly available in the world because people are shifting to renting rather than buying. However, Sharing is increasing globally and is projected to grow from $15billion to $335 billion in 2025.
Employment in sharing economy
Employment is still the biggest concern in many developing countries. Thanks to the sharing economy, as there are millions of self earning opportunities are creating each and every day as it is scaling globally.
We are very well known about how platforms like Airbnb, Uber are generating many opportunities for people to earn income because it is exponentially increasing in every part of the world. In fact, It is much easier to get income without undergoing a much complex process. People who need extra income list out their properties or services and earn money for what they shared.
The market reach of the sharing economy occurs at a higher rate because the smartphone users are increased by 79.3% from 64% globally. Above all, the revenue in this sharing economy has increased from ($5 billion USD) to ($35.5 billion) and will expand to many important sectors at a higher rate in the upcoming years.
Here are the reasons behind the successful growth rate of Sharing Economy industry,
- Community driven business
- It’s flexible and scalable
- Technology advancements
- Low entry barriers
- Increased mobility
- Attracts many users
- Operational efficiency
Now it is clear that you get to know about how the sharing economy will be in the future and how it is impacting the lives of people. The ideology of the sharing economy is applying in diverse sectors such as finances, equipment, food, education, and dressing accessories. Above all, It continues to adapt to new challenges and certainty in the time ahead.
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