The Rise of Peer-to-Peer Marketplace

The world is changing. Never before in history have humans been able to maximize their daily routines through a few clicks of an app on their phones. Car-service app Uber reportedly sends riders 1 million trips each day and have had 1 billion rides taken so far. Accommodations-rental app Airbnb is shaping the sharing economy’s landscape with 60 million users and a total valuation of $25 billion. The sharing or Peer-to-Peer (P2P) economy may have been a bleak and idle concept in the past, but advances in technology and connectivity have allowed an immense growth in the market.

What’s mine is yours, with a fee

We all know about eBay and how it allows virtually anyone to become a retailer. Nowadays, other peer-to-peer businesses are popping up in every corner of the globe, adding to the competition. Principally, P2P is a decentralized economic system that functions because of collaboration between individuals and resources being shared. It exists to connect potential consumer and seller directly, in a much easier way. Through a mobile or web based application, a marketplace is created to facilitate transactions by a third party with a fraction of a fee.

Beneficial collaborative consumption

Peer-to-peer marketplaces have several advantages that have helped sector accelerate quickly. It allows individuals to generate income from underused resources and assets. Take Airbnb for example, a host who rents out their home to guests through the service can make additional income easily. That extra revenue wouldn’t be there if Airbnb didn’t exists to make it happen. Guests are also at an advantage because they would often get better prices that come along with a more unique experience, compared to what they would get in traditional hotels. Another example is Turo, a car-renting app; a car owner can make extra income by renting their car to others. Renters, in the other hand, spend less money than they would if they bought a car, or go to a car-rental place. Additionally, it’s good for the environment too: renting a car instead of owning one means fewer cars required, thus reducing carbon emissions and saving resources needed to make them.

Most likely a promising future with the help of technology

Comprising of almost 630 million people, Southeast Asia remains one of the most favorable markets for the peer-to-peer business model. Digital connectivity in Southeast Asia has grown over the years, currently standing at 250 million active internet users, with 27.4 million users added since March 2015 alone. Even though the peer-to-peer model is being challenged in countries with their established laws and regulations, the governments seem to be growing in favor of this model. They will realize that traditional laws and regulations have been effective for a time, but also need to be improvised to adapt with the modern technological world.

So what’s next?

It may be still an early dawn for peer-to-peer marketplaces, but the sun is rising fast. It’s evident that the global economy has been affected favorably with the addition of the sharing economy. Innovation in technology and collaboration between individuals will revolutionize the way we do business and disrupt businesses that fail to adapt. The model is already transforming all kinds of aspects of economy, solving problems and improving lives. Challenges may come, but it’s likely that they won’t be able to keep up with the rising demand and support for peer-to-peer marketplaces.