The last decade has seen a huge rise in companies called the sharing economy. You’ve probably used the sharing economy. You could stay at an Airbnb, share a ride with BlaBlaCar or Lyft, or get help with tasks on TaskRabbit. You can work for a sharing economy business as a service provider. You might also engage with the sharing economy in a business-to-business context.
And you may have questions about the sharing economy. What does its growth mean for sustainability? How can you influence it positively?
Our study explores how far the sharing economy reaches and what effects it has on society and business. We reviewed studies and tracked key players since they started. For example, Airbnb began in 2008 and Uber in 2009. In this section, we explain how the sharing economy influences sustainable business practices.
In today’s world, platforms like 22Bet connect people across the globe. This makes the lessons from the sharing economy even more important. They help us understand how shared experiences can bring us together.
What the Sharing Economy Is
The sharing economy has changed many traditional industries. It is set to grow even more. Sharing economy companies have four common features:
- These platforms operate digitally but connect people for real-world exchanges and services.
- They make it easier for people to trade directly. Suppliers and consumers are often regular people or small business owners, not major firms.
- They emphasize temporary access rather than ownership.
- They provide access to unused resources. This can include an empty room, a parked car, or an open seat. It can also be about someone’s skills, talents, or time.
Blablacar is a good example of a sharing economy firm. It operates as an online platform and an app. The actual activities — such as shared rides — occur offline, even though the coordination happens online.
The platform doesn’t own cars. Instead, it connects drivers with passengers heading to the same place. This peer-to-peer system lets people share empty car seats. It helps use the unused space better.
Today, platforms offer short-term access.
- Properties (like Airbnb, HomeAway, Love Home Swap),
- Products (such as Peerby)
- Car-sharing (like Turo, Getaround)
- Ride-hailing (like Lyft)
- Crowd-shipping (like PiggyBee)
- Tutorials (like SuperProf)
- Other services (like TaskRabbit).
Some of these companies are already global and public, like Uber and Lyft. Others, like Airbnb, will go public soon. By 2025, Europe’s sharing economy is predicted to bring in €80 billion, up from €4 billion in 2015. The Chinese government hopes that 10% of the nation’s GDP will come from the sharing economy by 2020.
The Sustainability of the Sharing Economy
The idea of promoting sustainability originally helped inspire the rise of the sharing economy. (Other contributors were technology development, population growth, urbanization, and the economic crisis of 2007-2008.)
The sharing economy promised:
- Economic and social benefits. Suppliers of services could make extra income. Customers enjoy increased convenience, more options, and lower costs.
- Sharing platforms have environmental benefits by maximizing the use of underused resources. A common analogy is that a car or home drill sits unused for the majority of its existence—95% of the time. By increasing access to these items, we boost efficiency and reduce waste. There are numerous ways in which the sharing economy impacts sustainability. Yet, little research has been conducted to fully comprehend it. After a decade, some argue, the sharing economy has shifted its focus from sustainability and community to convenience and efficiency.
Many people are concerned that companies use sharing as a way to attract customers. Some companies in the sharing economy might push workers and customers to earn more for the platform owners. Making goods and services cheaper and easier to get can actually lead to more buying. Researchers Cristiano Codagnone and his team say this causes more waste, not less.
Sometimes, the positive outcomes of the sharing economy services can be somewhat unexpected. Brad Greenwood and Sunil Wattal studied UberX’s entry into California. They found it reduced alcohol-related vehicle fatalities.
The negative consequences of the sharing economy may be easier to notice. Uber and other ride services might be making traffic worse, not better, says researcher Mary Sutherland. Dayne Lee discovers that Airbnb can make the lack of affordable housing in some places worse.
Your Role in Driving Sustainability
Achieving sustainability in the sharing economy requires cooperation across all stakeholders—regulators, platform managers, service providers, and consumers alike. Here’s how you can contribute.
As a platform owner or manager, treat sustainability as a core objective, not just a marketing buzzword. Sharing platforms should consider the other reasons individuals care about sustainability. This can create more value for everyone involved.
As a service provider or consumer, your choices matter. You can influence the environment by being aware of how you consume. When we borrow or rent an item from a sharing economy platform, we help local sustainability. This small choice makes a difference.
This also applies when we, as suppliers, share an asset instead of keeping it idle at home. Customers and suppliers have the option to select sharing systems that prioritize both financial success and sustainability.
Choose to back local grassroots initiatives in the sharing economy. These efforts aim to make the most of current resources. They do this without needing more output or spending money.
As a regulator or policymaker, back regulations and taxes that aid sharing firms. Their work boosts both economic and environmental sustainability.
Distinguishing Good and Bad Actors
Identifying responsible versus irresponsible actors in the sharing economy can be challenging, especially when evaluating company policies and management practices. Regulators and others can check if the platforms act fairly in their practices. Are they paying taxes? Bending rules?
Regulators should encourage sharing firms to be more transparent. They need to pay attention to whistleblowers among employees and participants. This will improve the understanding of business practices in these companies.
Activities that aren’t sustainable need closer inspection and stricter rules. Bike and scooter-sharing companies discard millions of damaged vehicles. These vehicles often end up in scrapyards and bicycle graveyards.
It’s Up to Us All
By holding each other accountable, the sharing economy can thrive sustainably. Every participant—businesses, individuals, and society—has an important role to play.
About the Authors
At Brunel Business School in the United Kingdom, Dr. Oksana Gerwe is the Deputy Director of the MBA Program. She is an instructor at the Division of Strategy, Entrepreneurship, and Globalization. Oksana earned a PhD in Business Management at IE Business School in Madrid. Her focus was on strategy.
Innovation, entrepreneurship, and corporate and competitive strategy are the main topics of Oksana’s research and teaching. She conducts research in several fields. The sharing economy, peer-to-peer business models, and disruptive innovation are a few examples.
Innovation that is disruptive and the sharing economy are upending our world. They’re also altering competition across many industries. I like to use my research to inform the students about these relevant and cutting-edge issues.
Dr. Rosario Silva is a professor of Strategy at IE Business School–IE University. She covers competitive strategy and strategy in several master’s programs. She holds a PhD from Carlos III University of Madrid.
She has taught in-company courses for over twenty companies in various sectors. Her current research explores the sharing economy. She looks at what drives its growth. She also examines how traditional businesses respond to sharing platforms.
