Sharing economy as a new business model or just a phenomenon?

A brief introduction to the sharing economy

Abstract

Th e average electric drill is used between 6 to 13 minutes over its lifetime.’ [Reissman, 2015, p.1.] It is the most common example which is used to illustrate the meaning of the sharing economy. In my study I examine the new phenomenon called ‘sharing economy’. In the research literature there is no widely accepted defi nition for this new appearance so I summarized the characteristics of the phenomenon based on the literature available. Th e sharing economy is a new socio-economic trend that is greatly changing our life. Th e development of the technologies created online platforms where individuals can share goods and services like cars, houses, household products and services. Th e expansion of the number of mobile devices and the increasing internet penetration contributed to the spreading of the collaborative communities. Th e new business solution has got plenty of benefi ts: on-demand access to goods and services, effi cient utilization of unused assets, growing employment, consumption and productivity. Th e sharing platforms can create win-win situations for both buyers and sellers. Th e collaborative for-profi t businesses have many disadvantages, too. Th ere may be unsafe products or ones with substandard quality with no state control; producers may evade local regulation more easily than traditional companies. In my working paper I am focusing on the following question: Can we call the sharing economy a new business model or is it just a passion of the millennia? I further consider the dangers and opportunities they may provide for businesses and the degree to which they challenge traditional business models. In the fi rst part of my paper I wrote a brief review of the new phenomenon and I examine the working environment of the new business solution. In the second part of the study I analysed the advantages and issues regarding the sharing economy.