Sharing Economy
The sharing economy (also called the collaborative economy or peer-to-peer economy) refers to economic activity in which individuals share access to goods, services, or resources—often through digital platforms—rather than owning them outright. It enables the more efficient use of underutilised assets.[1]
Definition
The sharing economy encompasses peer-to-peer exchanges mediated by digital platforms, in which participants share or rent assets, services, or skills. Examples include ride-sharing, home-sharing, and the sharing of tools, equipment, and workspaces. The essence of the model is the utilisation of idle or underused capacity.[1]
Key features
| Feature | Description |
|---|---|
| Peer-to-peer | Interactions between individuals rather than firms. |
| Platform-mediated | Digital platforms match supply and demand. |
| Access over ownership | Users access goods and services rather than owning them. |
| Asset utilisation | Idle assets are put to productive use. |
Benefits and challenges
Benefits include lower costs for users, higher utilisation of assets, additional income for providers, and reduced resource consumption. Challenges include regulatory uncertainty, inadequate labour protections for platform workers, safety and quality concerns, and competitive pressures on traditional industries. The sharing economy overlaps with the platform economy and the circular economy.[1]