What is the shared economy?

“What is mine is yours and what is yours is mine.” These are Vincentio's famous words in Shakespeare.”Measure for measure“. Like so many quotes from Shakespeare, this sentence has also become part of our modern lexicon and is more relevant today than ever. In recent years, we have seen the rise of the so-called “shared economy” or “sharing economy” (German: “economy of sharing”). It focuses on collaboration and teamwork and is used by companies to improve organization, development, and many other aspects of their business.

So what is the sharing economy business model, how can you use it and can the sharing economy improve your business results?

What is a shared economy?

Why own when you can rent, and why leave something unused when someone else pays for it? This is the basis of the shared economy, which also forms the basis for companies such as Airbnb. But it's not just about holiday homes. It includes everything from clothes and cars to ideas and time, and is a concept that can be found in many modern companies.

As a private person, you can participate in the sharing economy by renting out your personal property. For example, you might have designer clothes that you don't wear or an instrument that you don't play.

As a company, you can combine several work spaces, rent parking spaces/office space and ensure that every asset — and therefore every minute and every cent — is used optimally:

• A peer-to-peer network, which is based on asset sharing
• The assets include both wares as well services
• Is usually online transacted
• Also known as”Sharing Economy“,”collaborative consumption“and”Peer Economy“.
• Enables companies to have multiple Ideas, spaces and workplaces to bring together

Sharing economy examples

Some of the biggest tech companies use the sharing economy as the basis for their success. We've already highlighted Airbnb, but the entire crowdfunding sector is also a prime example. Consumers can donate money to creatives or charities and receive perks, products, and other rewards in return.

Other examples of the sharing economy include:

• clothes rental
• coworking spaces
• Couch surfing and office/room rental
• ridesharing
• Marketplaces for task sharing

Which industries benefit the most from the sharing economy?

Both business-to-consumer and business-to-business brands can benefit from the sharing economy. Companies generally benefit more if they meet one or more of the following conditions:

• They are capital-intensive - if they're an asset-intensive company, they could free up some important resources.
• They are geographically concentrated - most of their businesses are located in a single area, which makes renting easier
• They are underutilized, e.g. by unoccupied parking spaces and offices. And here comes Desk sharing into the game.

that Desk sharing conceptt is based on the shared use of resources, which in the case of desk sharing means that workplaces are flexibly divided among several users. This results in more efficient use of office space, which allows companies to save costs and make optimal use of their resources. Desk sharing also promotes networking and collaboration among employees by creating flexible working environments and thus improving internal communication and the exchange of information. Because desk sharing software, such as Flexopus, making it easier to access and manage these shared workplaces, it is becoming an indispensable tool in the modern, flexible working world driven by the principles of the shared economy.

Pros of the shared economy business model

The shared economy offers some clear benefits for companies across a range of sectors:

Improved capital efficiency

Investments are not underutilized, which helps to reduce costs and avoid unnecessary spending. Maximizing the cost efficiency of existing projects could also result in less investment in new and costly projects.

Reduced emissions and waste

Modern companies are increasingly aware of their CO2 balance. They are morally and legally obliged to to reduce emissions, and the sharing economy could help with that. For example, if only half of a large building is used, the additional rooms could be rented out so that other workers have the space they need and travel less or have to find alternative options.

Better ideas

The collaborative nature of the sharing economy fosters a creative community and helps companies find new ideas and promote promising talent. It is less rigid, and flexibility promotes creativity.

Disadvantages of the shared economy business model

Despite all the advantages of this promising business model, there are also some downsides. These usually result from uncertainty surrounding the sharing economy, which in turn is due to its relatively recent introduction:

Regulatory uncertainty

Many services offered by collaborative platforms focus on established industries that rely on strict regulatory practices, and these practices are difficult to maintain on such a large scale. In other words, it's easier to regulate a large hotel chain and ensure it meets the highest standards of fire and food safety than it is to supervise someone renting out their basement or guest room through Airbnb.

preoccupations

A hotel chain must not discriminate, otherwise there is a risk of expensive legal dispute. But if you allow homeowners to rent out their guest rooms and screen all visitors, they're more likely to be biased against specific races, cultures, religions, ages, or genders.

synopsis

The sharing economy has opened up new opportunities for both consumers and companies. It has changed the way we work, travel, shop, and create, and it continues to play an important role in launching and growing novel businesses. Thanks to innovative companies like Flexopus, it has never been easier for other companies to join the sharing economy and benefit from its many benefits.