What the Sharing Economy Is

Sharing economy platforms let people rent out things they own but don't use all the time, from spare rooms to cars and tools.

The sharing economy, or collaborative economy, uses digital platforms to match people who have spare assets or skills with people who need them for a short time.

Idle capacity

A car sits unused most of the day; a spare room is empty most of the year.

Platforms

Airbnb, Uber, Rapido and rental marketplaces connect owners and users.

Ownership to access

Users pay for use, not ownership.

A spare room

A family rents out an empty room to travellers and earns extra income.

Assuming every 'sharing' platform involves sharing

Many are simply commercial services.

Key takeaways

Idle assets are rented out.
Platforms match supply and demand.
Access replaces ownership.
Not all platforms are truly peer-to-peer.