Peer-to-peer (P2P) transactions are increasingly taking the stage when it comes to buying and selling, or sharing, goods and services. Selling used goods online, sharing your car for money, and hiring out your home to people on holiday when you’re away is now commonplace. Many people enjoy the lower costs associated with the sharing economy. And who can argue with them? Brand names are available for far less and the quality of goods often remains high. With sharing platforms, your money can go farther than it can in the traditional marketplace. The fact the sharing economy also leads to increased sustainability and helps the planet is an added bonus for some. For us at Y’earn, it’s core to why we exist and the reason we spend time writing articles like this.
In our previous two articles we looked at the evolution of the sharing economy and which industries are currently leading the pack. In this third instalment of five posts, we will now consider who is doing the sharing.
What generations are sharing and what do they like best? Do grandparents today love to grab an Uber downtown as much as millennials?
Who doesn’t like the sharing economy, or simply isn’t using it? And why is this?
To answer these questions, we examined Who shares and who doesn’t? Results of the UK Sharing Economy Consumer Survey 2017, put out by Warwick Business School. In addition, we turned to other sources for a peek at additional and complementary information.
A word of warning: this article is not a comprehensive analysis of all who are using the sharing economy and why. That would be too vast a topic for this space. Our brief examination does strive to provide a solid glimpse into the people involved, however. Learning who is doing what could help you make better consumer and business decisions. It may be interesting to know the reasons behind participating in the sharing economy, or not, may be more nuanced than they seem on the surface. What do we mean? Read on.
Younger people are “sharing” the most
As you might expect, Warwick’s survey found that younger people are using the sharing economy the most. Usage decreases as groups get older.
The following age groups in the UK were found to have participated in the sharing economy at least once, at the following rates:
Who participates in the sharing economy UK
Age 18–24 77.9% ( Gen Z)
Age 25–34 70.4% (Millennials)
Age 35–44 59.4% (Millenials/ Gen X)
Age 45–54 54.3% (Gen X)
Age 55+ 39.2% (Boomers II, Boomers I, and Silent Generation)
Many, if not most, organisations and companies that participate in the sharing economy do so via the internet. Because of this, it makes sense that the age groups with the highest smartphone penetration, (younger people), participate in this economy the most. According to Statista.com, 98% of people aged 16 to 24 in the UK use a smartphone. But there’s a catch to this simple line of thinking.
Smartphone usage in 2020 wasn’t found to decrease considerably until you reach the 55 + age category (or even the 65+ category), according to Statista. This is unlike the pattern in participation rates shown in the sharing economy above.
Statista reported people aged 25 to 44 had a smartphone usage of 98% in 2020. It was also found that people aged 55 to 64 had a smartphone usage of 87% in 2020. It wasn’t until you reach the “65 and over” age group that significantly fewer people were shown to use a smartphone. Just 65% of the 65+ age group reported using a smartphone.
This shows it isn’t smartphone usage alone that is leading younger generations to participate more in the sharing economy UK. We’ll get to what may be contributing to the differences in a minute.
Sharing pre-owned goods is the most popular practice
Buying and selling pre-owned goods is the most popular way people participated in the sharing economy in 2017. Warwick’s survey found that slightly over 47% of the entire UK population participated in this way during that year.
Sharing money through things like peer-to-peer lending and crowdfunding came in second place. Sharing places to stay, rides, and professional services followed.
Percentage of the entire UK population to participate in sharing categories
- 47.1% shared pre-owned goods
- 20.5% shared money
- 18.7% shared a place to stay
- 15.7% shared rides
- 13.0% shared professional services
Younger and older groups like used fashion, but not others
There are many items bought and sold as preowned, used goods. One of the most popular is used clothing. A poll of 1500 people conducted by BusinessWaste.co.uk found some interesting insights. About 80% of young people (16 to 21 years old) were comfortable buying used clothing. So were 91% of respondents over the age of 60. These are high results.
The overall percentage of people who said they would buy used clothing, however, sat at just 45%, however. This indicates that many people aged 22 to 60 aren’t comfortable buying used clothing just yet.
What would spur them to do so? Surprisingly, almost all respondents said they would buy preloved fashion if celebrities also did so. Others said they would jump on the bandwagon if their friends and family did first.
A larger number of people (80%) said they would be comfortable purchasing second-hand clothing from a high street retailer. Fewer (62%) reported being comfortable making purchases in a charity shop.
According to Mark Hall, communications director of BusinessWaste.co.uk, there is now a huge opportunity for retailers to improve their so-called “green credentials”.
“Some well-known retailers already feature vintage or pre-loved selections in store and there’s clearly room for these to be more widely available,” Hall commented to FashionUnited.uk. “Consumers still have the benefit of shopping curated lines of (second-hand) pieces in line with their preferred style, but without the environmental impact.”
Increased options, convenience, and cost drove participation
Warwick’s survey found that people participate in the sharing economy for a few primary reasons. These can differ from one category of sharing to the next. Overall, however, participants said they used the sharing economy because of:
- Increased options (such as when sharing accommodation) Allowed them to save money
- Convenience
- Meeting new people (couchsurfing)
- Being part of a movement
- Helping the environment
Researchers found that once consumers participated in one sharing platform, they were more likely to use additional ones. Sharing becomes a lifestyle.
Sharing is highest in Greater London, Scotland, and Wales
Warwick’s survey found that participation in the sharing economy UK was highest in the Greater London area, as well as in Scotland, and Wales. In Greater London, ride sharing was more popular than sharing accommodations. Outside of this area, the reverse was found to be true.
It was found there are far more consumers in the sharing economy than providers. In addition, those individuals surveyed who use sharing platforms at least once a month use more than one platform.
Many non-users are simply unaware of sharing platforms
The biggest reason people aren’t using sharing platforms is that they aren’t aware of them. In Northern Ireland and Wales, for example, over 55% of respondents said they didn’t know about sharing platforms at all. The next most-cited reason for not participating is safety concerns.
Higher earners use sharing platforms because of convenience
It’s worth noting that motivations for participating in the sharing economy UK were found to change according to a person’s income. The vast majority of people who earned less than £40K participated in order to access cheaper goods and services, thus saving money. People who earned over £80K, however, used sharing platforms because they are easy to access and convenient.
Overall, helping the environment was a bigger motivating factor for women than men.
Participants value the Trust Seal
In order to participate in the sharing economy it’s important to first establish trust. About 95% of consumers and providers in the sharing economy reported the Trust Seal as being an important part of platforms. This seal is a kitemark developed by Sharing Economy UK, a trade body representing the UK’s sharing businesses. The Trust Seal indicates that a business is adhering to, and maintaining, high standards as a set of good practices in their sharing business. This indicates all involved in the trade of sharing want some level of guarantee in their activities.
Education/targeted marketing could reach even more people
If you are a provider in the sharing economy a few things are clear. Having your business approved with the Trust Seal matters quite a lot. Getting this one step done could potentially draw in many more customers.
In addition, Warwick’s study makes it evident that education and awareness campaigns informing the public about the existence of sharing platforms are needed. Word-of-mouth goes a long way. This method clearly isn’t reaching everyone it could, however. Clearer laws and regulations around the sharing economy could also increase participation.
Finally, as with traditional economies, it’s key to recognise that within the sharing economy there are different tastes, needs, and motivations. This leads to subgroups within the industry. Knowing where your business fits within this spectrum can be huge. This can lead to audience awareness and help you better market your goods or services to the right people. Not everyone participating in the shared economy is doing so to access cheaper goods, for example. As mentioned previously, higher earners like the easy access and convenience the P2P economy provides via services like ride sharing. Knowing where you fit is elemental.
There’s room for white-glove service
A company like Y’earn has a unique space to fill. Y’earn connects consumers and providers with a focus on baby and children’s goods. People looking to hire furniture, toys, prams, and more for their child can do so through the platform. This space gives consumers access to high quality pre-loved goods for a certain time period. Conversely, if you already own high quality children’s goods but don’t currently need them, you can earn money by hiring them out.
A system like Y’earn’s allows for white-glove service. Users (or members) have pickup, cleaning, and delivery of their items done for them. Unlike purchasing baby goods for a platform like Facebook Marketplace, Y’earn provides solid guarantees. The items available are carefully inspected, cleaned, and delivered. You don’t have to leave your house to access them, and you know the person providing them to you is safe to contact. A business like Y’earn can connect with people who would not bother with marketplaces such as Facebook, filling a unique space. As a sustainable business, it offers membership and access to a coveted white-glove service within the sharing economy with exceptional value on all fronts.
This is just one example of how the sharing economy has numerous niches within it that need filling. As a business, by finding out why consumers choose to connect with you, you can expand your outreach to connect with the right groups. It’s important to remember that people buying a pre-loved scarf online through a used goods store have multiple motivations. These individuals aren’t simply looking for something to warm their neck. They don’t only want a bit of extra style. The motivation to buy goes deeper than in the traditional market.
Is your customer looking to save money, find an exclusive look, or to access a brand name they couldn’t otherwise? Does saving the environment matter to them? By surveying your existing customers, you can target your marketing to suit your niche.
In addition, the research detailed above shows that those who use one sharing platform tend to gravitate towards others. By advertising to your target market on other sharing economy platforms, you can potentially increase your reach.
Read our next article: how the sharing economy is creating less waste
The sharing economy UK is vast and burgeoning. It has a huge potential to impact our relationship with consumption. Follow us on LinkedIn, Twitter or Medium to read our next article focused on the environmental benefits of the sharing economy with a key focus on helping consumers create less waste for a better planet.
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