It’s Time to Embrace the Sharing Economy (Again)
With the world economy currently gripped by COVID-19, average Americans are already looking for ways to save money by any means possible.
During The Great Recession, tech company’s like Air BnB and Uber shone above all by developing high value services at a low price point.
How did they do it? By connecting users looking to leverage assets for temporary use. Our tech industry was quick to capitalize on Americans being terrible at utilizing the things they own.
Our emotional recovery from the pandemic should start from a financial standpoint — helping families get back on track by welcoming new services will be essential.
What is the Sharing Economy?
Peer-to-peer collaborations is nothing new. Societies have been directly exchanging goods and services for decades.
Social connectivity via the internet primed tech companies to develop platforms which allowed users to exchange goods and services at a faster rate than ever before.
“The concept is to enhance the usability of assets, making their lifespan more worthwhile.” — Forbes
In the age of Marie Kondo, what may be considered clutter in our lives doesn't necessarily equate to waste. Re-purposing the things we own could mean saving yourself (or someone else) a lot of money.
For example, why buy a $600 designer dress you’ll likely only wear once when you could rent it like a modern fashionista from Rent The Runway :)
It’s Growing:
During the financial crisis of 2008, when money started getting tight people finally began to understand the need for and actually utilize services like AirBnB and Uber in order to be more fiscally responsible.
According to Statista, the graph below shows the number of users in the sharing economy has been steadily increasing for years.
Number of Sharing Economy Users in the United States from 2016 to 2021 (in millions):
In a separate study by the Pew Research Center, Americans have been increasing their use of the sharing economy without even knowing it.
According to their research, 72% of American adults have used at least one of the 11 different shared and on-demand services — and yet, 73% of Americans say they are not familiar with the term “sharing economy”.
How Can We Benefit?
1. Get more bang for your buck
Start ups like Evita Leto are helping new parents save a ton of money on baby clothes.
This Brooklyn based start up rents out gently worn baby clothes on a monthly subscription — sending bigger sizes as the newborn continues to grow.
Upon receiving their latest order, parents will simply send back their previous clothing package using a prepaid shipping label. This service saves money, time, and storage space.
2. Leverage Underutilized Resources
Who doesn't like to earn some extra cash on the side? The average Uber driver in NYC makes roughly $20.96 per hour which isn't bad — but like most New Yorkers, you’re more likely to own a bike than a car.
Spinlister is a start-up connecting bike enthusiasts from around the world. If you’re a passionate biker, surfer, or ski/snowboarder this could be a great way to provide support and earn some extra cash on the side.
Spinlister guarantees up to $5,000 in theft or damages to their listers so no need to worry about letting someone borrow your gear.
They currently operate in the following cities with more on the way:
- New York City
- Amsterdam
- San Francisco
- Los Angeles
- Portland
- London
3. Be Your Own Boss
Flexibility is a major factor that differentiates the sharing economy from traditional forms of business. Graphic designers know better than most the benefits picking up side work on your own time.
One of the best platforms to kick off a side hustle is definitely Fiverr.
Creating a profile is super easy and only takes a few minutes. Fiverr promotes collaboration by allowing direct communication among its users.
Similar to most peer-to-peer platform services, reviews mean everything. Be sure to communicate timeline expectations and make any reasonable adjustments to make your collaborator happy :)
As of right now, Fiverr offers 9 different services including:
- Graphics & Designs
- Digital Marketing
- Writing & Translation
- Video & Animation
- Music & Audio
- Programming & Tech
- Business
- Lifestyle
- Industries
Disclosure: I currently work for Evita Leto
