Want some real talk? The sharing economy isn’t actually about sharing. The buyer doesn’t care if they’re sharing, renting, bartering or buying — so long as they get what they want at a good price. And the seller just wants to make some cash, preferably without working too hard.Psst, it's not much of a secret.
A Few Case Studies
Don’t believe me? Let’s look at a few of the leading companies in the space formerly known as the sharing economy. Airbnb? Okay, they let you share (or rent) your apartment — fair enough. Lyft? That one’s harder. You’re renting your car, but, more than that, you’re selling your time. And Uber, Lyft’s archrival, is simply a better interface to limousine and car services — a massive industry that employs hundreds of thousands of drivers and has existed for decades.
It goes on from there. Looking through AngelList’s top 20 collaborative consumption startups (“collaborative consumption” is a synonym for the sharing economy), it’s clear that some of the early breakouts have a relationship to sharing that’s tenuous at best. Homejoy is a better interface to housecleaners. Rent the Runway is an online dress rental service. Gazelle is a convenient way to sell your old electronics. My company, Twice, is a marketplace for pre-owned fashion.
What These Startups Have in Common
Despite my semantic grumbling, however, some important commonalities truly do exist. First, in all cases, the allure for the seller (if there’s a seller) is easy access to cash. Sometimes it’s through an under-utilized asset, for example selling the clothes you no longer wear on Twice. Other times it’s through convenient scheduling and flexible hours, for example cleaning apartments on Homejoy. Second, the allure for the buyer (if there’s a buyer) is more flexible access to products and services. This, in turn, often reduces prices, since buyers can pay for only what they need. For example, ten years ago you could have employed a chauffeur to drive you around, but hardly anyone could afford it. Uber lets buyers access that convenience on-demand, so you only pay for what you use....MORE
Previously:
Dear Airbnb: Charging Rent to Someone Is Not "The Sharing" Economy
I usually side with the upstart against the incumbent but this guy sounds seriously manipulative.The Economist on The Rise of the Sharing Economy
On Airbnb's $10 billion Valuation and the 'Sharing' Economy in General
"Airbnb Is Worth $10 Billion Because The Sharing Economy Is a Farce"
No, not much of a secret at all.
