How Technology has Created a Sharing Economy?
In the last decade -or even more- we have been hearing something like “in the future, we may own much less and share much more”. Why? Some people say that the reason is internet and big data. Is this a good thing? That’s up to you to figure out, but in this article, we explain to you how technology has helped building a sharing economy.
Sharing economy is a term with several meanings, but it’s used to describe economic activity involving online transactions. It’s a mystery who was the first person to use this concept, and according to sharing economy expert, Alex Stephany, it’s a term “vulnerable to loose definitions”.
So, how technology has an impact on this new economic activity? Think about it: From renting homes to borrowing things. Uber is shaking the taxi industry but doesn’t own car and Airbnb is dominating the hotel market despite not owning a single building. These apps are transforming our economy.
From real-time transactions through the use of mobile to consumers sharing social feedback, companies must understand how their products and services change their customers’ value delivery frameworks. In the sharing economy, reputation is your best asset: technology has allowed users and hosts to ‘rate’ a service in a very easy way.
According to Forbes magazine, Uber is doing on average 1 million rides per day and Airbnb is active in over 192 countries around the world. Some people say that the currency of this new economy is trust. These are 5 ways technology is affecting sharing economy:
- It’s breaking with traditional and established ways of doing business. Some of these ways have been in existence for hundreds of years and now they need to adapt to the new digital trends.
- It’s changing -for the better- our day-to-day life. Research by PwC found that, among adults who are familiar with the sharing economy, they see many benefits in it. Surveyed said it makes life more affordable (86%), more convenient (83%), is better for the environment (76%), helps build a stronger community (78%) and is more ‘fun’ than engaging with traditional companies (63%).
- It’s making companies “more open”, by sharing technology and ideas publicly. With a sharing economy, companies are able to connect with and help other like-minded businesses around the world.
- Reputation is made -or broken- online. In the digital world, reputation is essential and vital for our businesses. Technology makes incredibly easy to ‘rate’ a service you use, and thus it’s paving the way for a new kind of customer service.
Now, are these technology advances changing our lives forever? Tell us in the comments below what do you think about sharing economy.