In addition to offering a marketplace, their experts also stay active in their fields, which allows them to deliver the most up-to-date content. Peer networks make it possible to access such things without asking participants to pay a lot or assume unacceptable amounts of risk. Among the most widely studied are local housing market distortions precipitated by short-term rental platforms in major cities and popular tourist destinations. They also offer an environmentally conscious community for their clients to explore. She spends the other two weekdays at home or at a coffee shop, working furiously on projects for them. Also, it provides capital to borrowers who may not be able to find a traditional loan at an affordable rate (or at all) due to a shaky credit history or a stingy bank. They also have third party smart lock integration that ensure the bicycles are GPS locatable. Based on the borrower’s credit history, the interest rate is typically set by the platform, which acts as the intermediary between the two parties. googletag.cmd.push(function() { What It Challenges: Taxi and rental car companies have become antiquated. If you like the idea of offering working people the opportunity to save money and meet new people on their daily commute, then this could be the sharing economy business idea for you. At whatever point in time a consumer wants to look ahead into the future, the needs that can be met by the online sharing economy must match up with the global economy. For instance, Advertiser partners include American Express, Chase, U.S. Bank, and Barclaycard, among others. However, due diligence still ultimately comes down to the homeowner to properly vet potential renters. You can launch anything from a jewellery rental business to an errand running platform. If solving this solution is interesting to you, you can launch your own sharing economy platform for parking space rentals. If you like the idea of increasing the number of bicycles on the road by creating a marketplace that enables bike-sharing, then this could be the sharing economy business idea for you. Though theories abound, no one is really sure how peer-to-peer networks might reorder our society and economy in the coming years. Tomayto, tomahto. According to Zillow, housing prices roughly doubled between early 2012 and early 2018. Sharing economy companies and examples. If you like the idea of operating a lending service for technology, this could be the sharing economy business idea for you. Coworking and task marketplaces are built on the idea of interpersonal collaboration and resource-sharing. Then this could be the sharing economy business idea for you. Though this creates risk for individual lenders who lend via peer-to-peer platforms, it also allows them to put some of their capital to use without researching stocks and funds or settling for meager interest payments from a savings account. In addition to offering a platform for clients and taskers to meet, TaskRabbit also offers to connect clients with skilled services, such as handyman services, personal assistants, painters, installations and organising services. For creative types, using a crowdfunding platform is less time-consuming – and offers a better shot at success – than applying for grants through government or nonprofit arts organizations. For instance, Spinlister lets you rent a bike when you’re traveling – or when you decide you need a pedal-powered ride for a bike commute on a beautiful day. But when you share a physical good, you cut out the middle man – the retailer or manufacturer – and recover some of what you paid for it. 1. In addition to their large offering of wedding jewellery, The Folly Boutique also offers jewellery for other events, and offer the ability for their clients to rent or buy their pieces. What It Is: Do you have a skill or knowledge base that you’re not using in your day-to-day job? In essence, the sharing economy cuts out the middle man, whether that’s a traditional employer or the company you buy goods and services from. You can now get an unsecured personal loan directly from your peers, share the same office space with dozens of different companies, and stay at a stranger’s house instead of a hotel when you’re traveling out of town. Companies also benefit in many ways from the sharing economy – provided they adapt to developments and are willing to invest capital and labor in expanding or realigning their business model. Sharing economy Airbnb One of the most well known examples of businesses operating in the sharing economy is Airbnb. Do you want to help people make extra money running errands? For instance, when you rent out your house on Airbnb or Vrbo, you basically invite strangers into your home. For instance, in a talent marketplace, there’s typically a finite number of jobs for which you’re qualified and thus no guarantee of a steady income – or even payment for completed work if the buyer isn’t satisfied. Upwork is a freelancing platform that allows users to list their special skills in a bid to find remote jobs and projects where they can be compensated for what they do. Since carsharing companies like Zipcar mostly charge for the time (minutes or hours) and distance you drive, they’re much cheaper than rental car companies, which typically charge by the day. In a hotel room, you don’t have to behave as if you’re a guest in someone’s home. If becoming part of the sharing economy interests you, here are ten examples of sharing economy business ideas you can learn from. The sharing economy continues to grow in high demand as consumers look for more cost-effective ways to fund, purchase and find items. Not having to deal with car insurance, maintenance issues, and potential thieves could be a big benefit. However, crowdfunding may make it easier for businesses and projects to obtain financing. Related: The Ultimate 101 List Of SA Business Ideas To Get You Started. Then this could be the sharing economy business idea for you. googletag.defineSlot('/1035677/MoneyCrashers_', [[300, 139], [300, 360], [630, 139], [630, 475], [630, 250], [1, 1], [300, 250], [300, 475], [630, 360]], 'div-gpt-ad-1590780665633-0').addService(googletag.pubads()); Peer-to-Peer Bike-Sharing Start-up. What It Challenges: Markets, retail outlets, and manufacturers often sell new items with a significant markup. For instance, according to TechRepublic, Airbnb has coordinated free accommodations for people affected by natural disasters, and TaskRabbit has experimented with organizing volunteers in crisis situations. Customers enter their departure and arrival destinations and times, then choose a driver that’s headed in their direction. This increases trust among participants, creating a clear contrast with an impersonal bike rental outfit or kennel. Before you start creating the platform, here is an example of a sharing economy business that you can gain insights from: BlaBla Car is a ridesharing service that connects drivers with empty seats to people looking for a ride. The global crowdfunding market will increase by 13.86% year-on-year in 2021, according to Technavio market research. And with newer companies like GetAround, you can rent privately owned cars by the hour or day when their owners don’t need them. 13 Best Cash-Back Credit Cards – Reviews & Comparison, 8 Best Low APR Interest Credit Cards – Reviews & Comparison, 20 Best Travel Rewards Credit Cards – Reviews & Comparison, 15 Best Hotel Rewards Credit Cards – Reviews & Comparison, 13 Best Gas Credit Cards – Reviews & Comparison, 12 Best Credit Cards for College Students – Reviews & Comparison, 26 Best Small Business Credit Cards – Reviews & Comparison, 10 Best Secured Credit Cards to Rebuild Credit – Reviews & Comparison. Though the most common type of peer-to-peer loan is an unsecured personal loan, offered on such platforms as Lending Club and Prosper, platforms like SoFi offer student loans and mortgage refinancing loans as well. Bike sharing services such as Bcycle, which has multiple locations in cities like Denver and Austin, allow members who pay manageable membership fees to rent bikes by the hour or half-hour, often for just a few dollars per session. Like other functions of the sharing economy, these services cut out the middle man, reduce costs, and connect like-minded people. Image credit: seaan via Flickr Ridesharing platforms feature the same constraints. googletag.enableServices(); In addition to flexible workspaces, The Business Exchange also offers state-of-the-art technology to enable high productivity and seamless connectivity. These facilities, stocked with coffee and connected to the outside world with phone lines and WiFi connections, typically feature large, bullpen-style space with office suites, conference rooms, and common areas. Then this could be the sharing economy business idea for you. Previously, when you were in an unfamiliar place and needed a bed (or a couch) to sleep on, you had to check in at a hotel or motel. On platforms such as Kickstarter and Indiegogo, entrepreneurs, artists, and others present startup or project ideas to a community of potential funders, and then set a target fundraising amount and date. If you like the idea of starting a platform where people can buy, sell and swap clothing, then this could be the sharing economy business idea for you. What It Is: Like peer-to-peer lending, crowdfunding connects people who need money with those willing to provide it. Opponents of the sharing economy point out that people who work under a shared economy are deprived of the benefits accorded to full-time employees such as paid leaves, sick pay and bonuses, not to discount the fact that they are often underpaid. If you have the requisite skills or knowledge, these platforms allow you to earn money by providing them, often from the comfort of your own home (or at least your own car). Methodology. Before you start investing in expensive pieces of jewellery, here is an example of a sharing economy business that you can gain insights from: The Folly Boutique is a place for brides to find something a little different in costume and statement jewellery. If you haven’t, take a moment to check out our comprehensive guide to selling on eBay, Amazon, Craigslist, and more. Want some sharing economy examples? Despite its increased prominence and continued growth, the sharing economy won’t completely displace traditional economic networks anytime soon. Brian Martucci writes about credit cards, banking, insurance, travel, and more. Vrbo encourages owners to collect a deposit from renters and draw up a rental agreement that specifies the rules that renters must abide by (such as quiet hours and whether guests are allowed). In addition to their wide variety of products and value-added services and products, Go Rental also offer rental finance options, and additional services such as logistics, warranty assurance, asset management and more. Reach him on Twitter, Workers’ Compensation & COVID-19 – What You Need to Know, Unemployment Benefits During the COVID-19 Pandemic – Guide, The Pros & Cons of For Sale By Owner (FSBO) When Selling Your Home, 9 Money Saving Tips for Families & Households on a Budget, 14 Best Paycheck Advance Apps to Help You Make It to Payday, 26 Best New Bank Account Promotions & Offers – May 2021, Where Should I Live? GetAround translates low overhead costs into savings, with rates starting at $5 per hour. Before you start investing in technology, here is an example of a sharing economy business you can gain strategies from: Go Rentals offers short-term, month-to-month and long-term rental options. Others call it the peer economy. Before you launch your product, here is an example of a sharing economy business you can gain insights from: ParqEx is a private parking marketplace that connects owners of underutilised parking spaces with drivers looking for parking. She spends one day a week at each and generates the majority of her business through referrals and informal contacts there. With more liberal lending standards than most traditional banks, P2P lenders offer opportunities for a wider range of borrowers. But these can be cramped and often lack amenities that make a longer stay more comfortable, such as a full kitchen. And some platforms use their influence – and the shared resources of their participants – to help those in need. Here is an example of a sharing economy business you can gain some strategies from before you launch your own business: Joyride provides a mobile app and backend solution to its clients that help them find customers, manage their bicycles and process payments. In addition to being a platform for moms to swap, buy or sell their clothing, SwapMamas also sells everything from houseware to handmade, for kids and grown-ups. You pay a weekly or monthly fee based on your space requirements and the amount of time you spend at the office. For instance, Airbnb rents outhouses, room, garage, and even the leftover food in the fridge. For instance, a lawyer I know by association (a one-woman operation focused on intellectual property issues) rents a desk at three Fueled Collective outlets in my area. The sharing economy can help. DogVacay and Spinlister allow dog lovers and cyclists, respectively, to turn their passions into income while addressing potential headaches for travelers. The network – we’ll call it the sharing economy, for simplicity – allows people to exchange tangible and intangible with one another at scale. Others, the collaborative economy, or “collaborative consumption.” Still others, the sharing economy. They also offer products and services such as 3g data, technical services, theft and damage waivers. Examples of collaborative consumption and the sharing economy are increasingly part of modern life, with Uber, Lyft, Zipcar, and bike sharing being just a few examples … Though taxis and rental car companies have been around almost as long as the automobile itself, the sharing economy dramatically undercuts their business model. Durable and consumer good are the first things that come in mind as objects of the sharing economy 1.0. New business models: As the examples of Airbnb, Uber, and Netflix show, the sharing economy offers the opportunity to mix up established industries. For instance, if you live in a city and only need to drive a few times per month, a car may be unnecessary. They showcase a huge selection of handpicked designers ranging from the relatively unknown to the veterans of the fashion jewellery world. In addition to the private parking marketplace, ParqEx also offers commercial parking solutions by assisting builders, developers, property managers, multifamily buildings, enforcement and security with parking solutions to increase revenue and decrease driver frustration and inconvenience. Related: 20 Innovative Business Ideas Doing Well Overseas (That Could Make You Money In SA). Over the past few years, the term ‘sharing economy’ has expanded and morphed to an extraordinary degree. Until recently, a lawyer without an office was unheard of. Before you start here are 10 examples of sharing economy business ideas you can learn strategies from: Do you love the idea of offering beautiful jewellery to anyone by renting it out? Other sharing functions, such as coworking spaces and task marketplaces, may be cheaper than their traditional counterparts. They offer courses in over 50 languages on practically any topic. Thanks to the sharing economy, there are a few popular services that connect people looking to rent out their apartment or home with travelers for as little as a day or two. Other sharing economy platforms focus on specific niches. Used wisely, a bike sharing membership can be significantly cheaper than traditional bike ownership after accounting for maintenance. Depending on the coworking hub’s policies, you may also need to pay to for conference room time, storage lockers, P.O. Crowdsourced Private Travel Experiences. What It Is: Coworking lets you share the cost of office rent, utilities, storage, mail, and office supplies with other professionals. By giving rides or working in a talent marketplace, you can replace or supplement the income you’d earn in a traditional job. Sharing economy companies and examples Source : Future Lab “What's mine is yours – for a fee.” Also known as the collaborative economy, peer-to-peer sharing, or social lending, the sharing economy emerges from the idea that people can save and/or earn money by renting, lending, selling, or exchanging unused or underused items/services. Collaborative consumption offers economic benefits for everyone involved. Many cities and university towns have at least one coworking hub, such as Minneapolis-St. Paul‘s Fueled Collective, Chicago‘s The Coop, and Austin’s Link Coworking. According to Sebastian C. Moenninghoff and Alex Wieandt, business experts at the Otto Beisheim School of Business, peer-to-peer lending is driven by the “emergence of the Internet, ongoing innovation by startup companies, and increasing financial regulation of traditional banks.”. The sharing economy is built on the idea that sharing certain goods, services, and skills is more efficient. It helps you to reduce waste by reselling and reusing your resources, instead of just throwing it … We strive to write accurate and genuine reviews and articles, and all views and opinions expressed are solely those of the authors. Likewise, if you can rent or share expensive tools or equipment that you only use for special projects, your tool shed or garage won’t be as attractive a target for thieves. They offer bike rentals, water sport equipment rentals and snow sport equipment rentals. If you can get more of what you need through the sharing economy, you may be able to live a leaner existence that requires fewer valuable possessions – and fewer worries about them. © 2021 Money Crashers, LLC. The sharing economy in China is expected to generate revenues of up to RMB 5.7 trillion (around US$915 billion) in 2017. This is known as equity crowdfunding, and it’s become far more common in recent years thanks to legislation such as the JOBS Act and regulations such as the SEC’s Regulation A+. You're reading Entrepreneur South Africa, an international franchise of Entrepreneur Media. boxes, and other perks. Bike sharing is another sharing economy application that’s disrupting traditional conceptions of ownership. Before you start stockpiling sporting equipment, here is an example of a sharing economy business you can gain insights from: Sharewood aims to give a chance to their customers to cultivate a passion for outdoor sports. However, now you can now find people willing to share their entire home and all the amenities that come with it – often at a lower cost than traditional lodging. In busy areas, parking can be in high demand. googletag.pubads().enableSingleRequest(); Before you launch your new platform/app here is an example of a sharing economy business that you can gain strategies from: TaskRabbit offers a platform where customers and errand runners can meet. Flight-Sharing Service Lets People Travel in a Network. What It Is: Peer-to-peer lending platforms allow individuals to lend and borrow money without going through a traditional bank. For instance, many people simply can’t afford a car or convince a traditional bank to extend a personal loan. googletag.pubads().setTargeting('subcat', []).setTargeting('category', ['savings']); Do you like the idea of creating a hub of creative, business activity? We’ve taken all the active companies listed under the sharing economy, collaborative consumption and peer-to-peer (AngelList & Crunchbase).We then cross-checked this against the company Appendix of The Business of Sharing (Palgrave Macmillan, 2015) by JustPark CEO Alex Stephany.. Before you start curating your platform, here is an example of a sharing economy business you can gain insights from: Udemy is a marketplace where teachers from around the world can offer their knowledge and expertise to students. According to inc, for a someone or a firm to partake in the sharing economy, the supplier must be offering an asset that would otherwise go unused. For instance, Kidizen is an online marketplace for used childrens’ toys and clothing. Hosts set the nightly price and specify available dates, typically when they’re not using the property. – 14 Factors to Help You Decide the Best Place, How to Save Money on Lumber Costs – 16 Tips to Reduce Wood Prices. The increased ease as brought about by the idea of sharing economy means that literally anyone having an internet connection may partake in it. Plus, renters in your home or riders in your car could cause damage that you have to pay for – either above and beyond a security deposit you require, or in the form of an insurance deductible. By using something or someone only when necessary, you don’t have to deal with the headaches or costs of ownership and employment, such as car and health insurance, maintenance, and HR issues. On the other side of the transaction, an owner can unlock the potential value of an item, such as a vehicle that would otherwise be sitting in the driveway or a talent that wouldn’t be utilized in a day job, by sharing it when it’s not in use. If you like the idea of increasing the number of bicycles on the … This may lead to tradeoffs that constrain your independence or self-reliance. In addition to offering a bicycle sharing platform, Joyride has also expanded into scooters. The term sharing economy refers to the economic activities in which partici- pants share the access to products and services through online market places. Behemoths like eBay and Amazon let you buy, sell and sometimes trade new and used goods (and, in Craigslist’s case, pretty much anything else you can imagine) without face-to-face interaction. Before you start gathering your second-hand clothing, here is an example of a sharing economy business you can learn from: SwapMamas is a platform for moms to swap, buy or sell their clothing. Id program requires hosts and visitors to provide it rent your unutilized resources and earn some extra from... Crowdfunding doubly potent as a top small business fundraising option and a brutally effective way to cut small expenses... – and the shared resources of their participants – to help those in need a lending service for technology and! 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