Tuesday, January 18, 2022

The “sharing economy” is knocking on the doors of the future with a spirit of trust and monopoly concerns

Some describe the “sharing economy” as a pleasant term, and at a time when the businessmen who dominate the market buy, sell and rent, others in the sharing economy seek to facilitate things and build trust, as they put it.

Shared economy flag-bearers such as Uber Technologies Inc. and Airbnb Inc. provide easy and affordable access to products and services that would not otherwise be used without the burden of ownership.

Fans of these companies based on the sharing economy claim that it would bring social benefits, such as building society and achieving equality, while skeptics predict that it may lead to lower wages, raise the cost of homes, undermine health and safety rules, and expose women to harassment and insult. Harvard Business Review in 2015: “The sharing economy is far from participatory.”

current situation
The winners and losers from the sharing economy are beginning to emerge, and among the winners were companies working in the on-demand transport sector (which falls under the sharing economy) such as Uber, Lyft Inc, and Didi Chuxing. China and Airbnb are emerging to rent or share homes.

Most of the bizarre and absurd ideas in this field have been absent, and food delivery services companies such as Maple, Sprig, and SpoonRocket Inc, along with Washio Inc, have collapsed. Iron and clothes.

Meanwhile, the most successful firms based on this system (although they are still mostly losers) have avoided using the term “sharing economy” recently.

Uber, for its part, acknowledged nearly halving the time that full-time professional motorists spend behind the wheel. When it comes to financing, the sharing economy peaked in the third quarter of 2015, the year in which investors spent $ 8.3 billion on the economy based on on-demand services.

Uber maintained its lead in raising funds with more than $ 15 billion alone, and despite the public relations crisis it suffers from, the company that achieved $ 20 billion in bookings in total during 2017 still dominates most of the sector, and the matter is now suspended. Its CEO, Dara Khosrowshahi, the former CEO of Expedia Inc, must pull the company out of the impasse caused by ethical lapses.

Theme wallpaper
The idea of ​​a distinct economic system embodied in participation has emerged at least since the publication of an academic paper in 1978 on car sharing under the title “Community structure and cooperative consumption”. So what is new? They are smartphones.

The sharing economy escalated in 2008 when Apple Inc. introduced its own app store, which made it easy to secure a business partner within minutes. Then, in the same year, TaskRabbit Inc was founded and became one of the first companies to exist. On the sharing economy; To connect it between job seekers and others who wish to avoid doing housework, such as cleaning the tank of dead fish.

Innovations such as computer systems available over the Internet and economic conditions have contributed to the expansion of this field, through the increase in the number of people looking for work in weak economic systems since the outbreak of the financial crisis. With the release of smartphones, it has become easier for companies to manage their workforce using advanced organization, logistics, and communications programs, in addition to monitoring workers’ performance through classification systems.

Ongoing controversy
Opponents of the sharing economy argue that it makes employees slaves due to their lack of access to health insurance or job security, in addition to what this type of transactions leads to exacerbating inequality, so that apartments that are “shared” in big cities, for example, are not available for long-term tenants, which leads to housing shortages and high rental rates.

At the same time, competitors – both hotel and taxi operators – are protesting against Silicon Valley startups using venture capital to subsidize costs, giving them an unfair advantage.

That may be the case for Uber, which in 2016 lost nearly $ 2.8 billion excluding its China operations, while Airbnb made a profit. Firms based on a sharing economy make it easier for low-wage workers to boost their wages so that they can make the best use of time and resources.

For example: Why do we establish a new hotel at a time when people have rooms that they can dispense with? And given that companies based on the sharing economy are subject to the regulatory authorities, they are like other companies. In this context, Airbnb settled a case with San Francisco and agreed to register hosts in New York State in a database, while Uber drivers are subject to excessive control in New York and London.

On the other hand, deals such as Uber’s merging of its operations in China with Chinese company Didi Chuxing and its armistice with Yandex NV in Russia raise the question of whether monopoly-sharing or monopoly-sharing is characteristic of Features of the future economy.

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