What is the Sharing Economy?
The sharing economy is an economic model defined as a peer-to-peer (P2P) activity of acquiring, providing, or sharing access to goods and services that is commonly facilitated by a community-based online platform.
Sharing economy or sharing economy is a collaborative economy that includes the shared creation, production, distribution, trade, and consumption of products and services by different people and organizations. This concept saves resources, thereby avoiding unnecessary wastage of money.
Sharing economy decreases costs, better quality, higher revenue, top quality over affordable prices, more variety, and lower commitment, which is inspiring many startups to adapt to this new economy by launching their online sharing and rental business. Allow MartPro to assist you if you are ready to launch your on-demand marketplace solution.
The shared economy platforms and portals are making a difference. They are driving the future & how people consume products and services in their day-to-day lives.
The emergence, growth, and success of shared economy platforms for car sharing, room sharing, personal services, and so on have sparked plenty of other new ideas and experiments.
Airbnb is one of the most well-known shared economy platforms, allowing you to rent out a spare room and earn money from it. Ridesharing apps such as Uber eliminate the need for you to drive, park, or even purchase a new car. Retailers such as Alibaba offer a complete ecosystem for vendors and customers.
The shared economy platforms are used for renting or selling products and services. The online platform connects the service providers and users in real-time. The sharing economy has been accelerated by smartphones.
The shared economy platforms serve as a platform for connecting products/services with users who require them. Several startups are capitalizing on the opportunities in the sharing economy, 17 of which are worth more than a billion dollars each.
The Impact and Opportunity of the Sharing Economy for eCommerce
There are numerous lucrative opportunities for starting and scaling businesses in the growing sharing economy. Here are some of the reasons why shared economy platforms will be the driving factor in the future:
1. Win-Win Opportunities
Everyone benefits from the sharing economy. As a user, you can benefit from easily finding what you're looking for and at lower prices. As a service provider, you get customers without the additional marketing and advertising costs.
The shared economy platform offers a complete ecosystem for managing booking and customers for your business. The on-demand economy connects users and service providers, encourages collaboration, and creates a win-win situation for everyone.
2. New Business Model
Many traditional businesses employ shared economy platforms to run their businesses. Car owners, fleet operators, and service providers are looking at online platforms for getting business.
Many industries are getting reshaped with the sharing economy platform. The finance industry is shifting to modern peer-to-peer lending platforms for loans, and hotel rooms can now be booked online and at discounted rates through platforms such as booking.com.
The shared economy platforms are creating an inclusive economy and even the traditional businesses are gaining from it.
3. Earn & Save Money
The shared economy platforms are centered on minimizing expenses. Booking a room on Airbnb, for example, is far less expensive than booking a hotel room. Even ridesharing apps like Uber, Ola, and Lyft help you save money. As a user, it is easier to save money using sharing platforms.
As a service provider, you can generate more revenue and volume of customers using the shared economy platforms. For E.g. an online rental platform allows people to rent things, services and earn money.
Whether its renting cars, buying spares, or selling goods through online marketplaces, the logistics and transactional costs are highly subsidized. As a result, service providers earn more money through the use of online platforms.
4. Promotes Barter Economy & Reduces Wastage
Shared economy platforms can play an important role in economic growth and environmental sustainability. With ridesharing platforms, transportation is changing rapidly. You won't have to worry about car insurance, new car purchases, or parking issues.
The sharing economy promotes resource efficiency and sustainability. It increases customer accessibility, business reach, and sustainable development for all.
5. Scale & Reach
Disruptive technologies are transforming the world. Take e.g. the peer-to-peer accommodation platforms are reshaping the hotel industry. People now use room-sharing platforms as their first preference for traveling and booking rooms.
E-commerce platforms have a massive scale and reach for service providers and businesses. E.g. Airbnb in 2018 has over four million listings in 65,000 cities across 191 countries.
Uber currently operates in over 65 countries and completes 15 million trips per day.
Digital platforms are transforming the way people travel. According to the World Bank, there were 1.2 billion international travelers in 2017, with 1.8 billion expected by 2030. The digital tools and shared economy tools provide the scale and reach to connect with customers all over the world.
Here are the top sharing economies, conducted by the industry sector that plays a significant role in the marketplace.
Tools and household items
Food and many more
Sharing Economy Ideas to Build a Profitable Rental Business
The sharing economy and digital platforms will undoubtedly shape the future. The expanding shared economy and its enormous success point to a more inclusive and collaborative world.
You can book a taxi, a hotel room, order food from your favorite restaurant, or find services near you; you can opt to do it online. The sharing economy is here to stay.
While businesses have always strived to provide solutions that make their customers' lives easier, the sharing economy is effective because it encourages frugality and social responsibility. It allows users to interact in more activities in a much more affordable and sustainable manner.
Users benefit from sharing economy platforms, especially as they have easier access to a broader range of products, services, and information, usually offered at a low cost. As a result, a more equitable and environmentally friendly market economy is achievable.
Companies that adapt to the sharing economy's business models have a better chance of achieving high profits with relatively low investment costs. The digitization of customer relationships also allows the collection of a plethora of user data and information.
If you want to incorporate your shared economy platform, feel free to contact us so that we can assist you in knowing your next big idea.
With a significant investment in software solutions, MartPro continues to improve community build-out, adaptability, interoperability, and scalability to gain a competitive edge. Partner with us to steer your business growth in the market of sharing economy.
We assist you in leveraging the booming trends of the Sharing Economy by utilizing our hands-on experience in developing SaaS applications, distributed systems, and software-defined infrastructure.
We facilitate you in utilizing business data to streamline your decision-making process and make the business management system more accessible.
You want to rent or exchange goods and services with other customers? Don't wait and join the Sharing Economy by creating your Marketplace with MartPro!
P2P, B2C, and B2B: what are these in the sharing economy?
The role that businesses play in providing services is hugely affected by the business model. They provide the necessary technical infrastructure, such as an app or an online platform, in the long term.
While sharing economy platforms are frequently peer-to-peer, the systems that enable them to do so can be applied to conventional B2C and even B2B models.
The B2C and B2B models have existed for decades and are only being accelerated and simplified by technological advancements. As a result, the peer-to-peer model is the most fascinating for grasping the new possibilities and dimensions of the sharing economy.
P2P: With peer-to-peer business models, companies provide the technical infrastructure that those willing to exchange or rent can use to find others.
B2C: In the case of business-to-consumer, companies use new technological possibilities to make their products easily accessible to customers.
B2B: Businesses lend production machines or services to other companies via business-to-business. This saves them from having purchased expensive equipment or hire experts.
The Sharing Economy - Benefits
Here are the lists of advantages for both users and companies.
Advantages of the sharing economy for users
The sharing economy has greatly increased in recent years, owing driven by the fact that users enjoy numerous advantages over established business models such as online stores or long-established service providers.
Due to the platform’s high user-friendliness, it is quick and easy to use. Above all, mobile accessibility via Smartphone apps allows users to access sharing economy services while on the go.
At the same time, the prices of the goods and services offered are generally lower than those of established competitors. Buying used items, renting apartments, and using private transportation services are less expensive than purchasing new products, booking a hotel room, or taking a taxi.
Conscience is also rewarded – fewer goods have to be produced when vehicles are shared and products are re-used and this saves resources and ultimately protects nature. However, this enhancement of the sharing economy should be enjoyed with caution, since consumption or use can also increase as a result of easier availability and lower purchase and usage costs.
For sellers and service providers, the platforms mean new sources of income. As no special vocational training is required, lateral entrants have a variety of flexible opportunities to earn money and thus increase their revenue. Many providers even make their profit solely from the income generated by the sharing economy.
Advantages of the sharing economy for businesses
Companies also benefit in many ways from the sharing economy – provided they adapt to developments and are willing to invest capital and labor in expanding or realigning their business model.
The sharing economy, as illustrated by Airbnb, Uber, and Netflix, provides an opportunity to blend established industries. If this succeeds, the earning opportunities can significantly increase. Even if markets are not disrupted, the sharing economy has the advantage of opening up new economic fields and reaching customers who might not have been interested in the company's products before.
By facilitating goods, services, or information through corresponding apps, personnel costs or business premises costs can be simplified. Consequently, developing and maintaining software also costs money.
By interacting with customers online, businesses can gather a wealth of valuable information about the platform's users. This information can be used to further evolve the service to customer desires and enhance it but is also wise to invest in gold – for example as a starting point to delivering personalized advertising.
MartPro – A Dedicated eCommerce Platform to Start an Online Rental Business Marketplace
The most important aspect of running a successful business is selecting the right technology partner.
Websites built though MartPro is also incorporated with selling functionality so that customers could not only rent items but can also sell them according to requirement. It means, if a user wants to sell anything that he doesn’t need anymore, he can sell on your website. It's one of the features that made MartPro an exciting platform to start an online rental marketplace.
It aspires to revolutionize the renting economy by providing entrepreneurs with an efficient and seamless platform for launching a scalable marketplace. The system can be tailored as per the entrepreneur’s need and you can add any feature at any stage. Furthermore, scalability allows you to expand your business without difficulties.
MartPro provides the tools you need to launch your own competitive, cutting-edge eCommerce website. The aspects of renting and selling are already there in the platform and you can customize it further to suit your business model rather than building a website from scratch. It allows you to save both time and money.
The future of the rental business appears to be bright, and with a great website, you can go ways and make unmatched profits.