Ride-hailing apps, bike rentals, and vacation rentals.
You've certainly used one of these services before, or at least heard of them, right? These are just a few examples of a new global trend known as the Sharing Economy.
The new model is transforming the way people consume goods and services, thus revolutionizing the economy. So, if you've never heard about it, we're here to tell you why you need to learn about it right now!
But what is the sharing economy?
The sharing economy is an economic model that allows users to share products and services through rentals, subscriptions, exchanges, and loans. Over the last decade, society has witnessed the rapid growth of this form of economy, which values convenience, allowing consumers to use a good or service only for the time that suits them, without the need to purchase it.
According to IDP professor Pedro Nery, "consumers benefit from lower costs and a greater range of choices."
Some of the most popular examples are ride-hailing apps and vacation rentals. But did you know that nowadays it's possible... Renting everything from maintenance tools and storage space to luxury handbags and toys?
Gabriela Koetz is a civil servant and mother of two children. She says that she has rented various items for her children, such as walkers and playpens, but that she also rents toys like bouncy castles and activity centers.
Temporary rental offers financial benefits: "These were items that my children would use for a short time and were of high value, so renting provided good value for money," explains Gabriela.
Furthermore, she says she was so satisfied with the experience that she has stopped buying items in favor of renting them!
The civil servant recommends sharing for people in the same situation: “the service allows us to diversify the children's toys without having to buy them. Furthermore, it's a form of sustainable consumption,” explains Gabriela.
The issue of sustainable consumption is truly gaining relevance. The sharing economy, by promoting the reuse of products, reduces the environmental impact caused by the overproduction of underutilized, easily discarded, and highly polluting items. Pedro Nery states that "this trend is here to stay, especially in light of climate change, which will continue to put pressure on traditional forms of consumption."
And if you doubt the satisfaction of little ones with toys for a limited time, Gabriela assures that the experience also brought advantages to her children. "Children get bored of toys quickly, and renting allows for more variety in their repertoire," says the public employee. In other words, no more toys abandoned at the back of the closet!
Offering goods or services in a shared ownership model.
Shared services apps provide numerous opportunities for those who want to generate income.
Among the best-known examples are ride-hailing companies, which allow drivers to register and receive a fee for each ride completed, providing a source of income. Since the service is offered within a platform, part of the amount paid by the consumer goes to the company, and the driver keeps the rest.
In this regard, Professor Pedro Nery warns that the main challenges of the sharing economy are legal, especially in labor relations.
“Many platforms have benefited workers with job opportunities, but it is considered that there is precariousness in some cases – such as with app drivers,” explains the expert. According to the professor, disproportionately regulating these activities can generate costs that consumers are not willing to pay, making the system unviable.
However, other types of apps also offer financial advantages, such as vacation rental apps, which allow owners to offer their spaces to users who wish to stay for a defined period of time. These platforms offer various types of accommodation, such as single or shared rooms, apartments, houses, flats, and studios, all around the world!
One person who found a way to earn extra income through this service is lawyer Gabriela Barbosa, who has been renting out her studio apartment in the Southwest Sector of Brasília through the Airbnb app for about eight months. She says that... With vacation rentals, you can achieve higher earnings than you would through an annual rental contract, for example..
The lawyer identified the business opportunity when she learned that the previous owner was already renting the space: "I found it interesting, so I went ahead with it," she explains.
However, some issues should be taken into consideration before offering a property for rent. Expenses such as condominium fees, water bills, and electricity bills are the responsibility of the owners, as is all maintenance of the space, including cleaning and changing bed linens.
Gabriela points out that the app "is very user-friendly, easy to use, and adds value to my unit because it has a low daily rate, so there are always guests."
Opportunity or risk for companies?
“Well-positioned companies can profit, but of course not all of them do. Those stuck in the old model can even go bankrupt,” comments Pedro Nery.
The professor points out that, in a way, from the perspective of progress, it's interesting that the old gives way to the new, freeing up physical and human capital for this new sector that better meets the demands of families. "It has a lot to do with what in microeconomics is called 'creative destruction': the DVD ended VHS and is now threatened by streaming, and so on," he comments.
Therefore, it's necessary to be aware of the new market trends: how does this influence my company? How will I position myself? How does it affect the relationship with customers?
Sharing to be happy?
Pedro Nery explains that the trend of the sharing economy follows a movement that has always existed. "Cities have existed and grown based on the specialization of the economy, with consumers unknowingly associating themselves to pay for a series of services they didn't realize they needed," explains the economist. In this way, it's possible, for example, to keep a restaurant running – through small contributions from several people.
Similarly, technological advancements are bringing this movement to other markets where high transaction costs existed, such as real estate and automobiles. "But we already shared, for example, books, with libraries," the professor points out.
Pedro also points out that, from a behavioral economics perspective, it makes perfect sense to prioritize experience over product ownership.Studies show that it's the path to a happier life. Possessing goods brings happiness for a short period. "In our daily lives, we only consider the time we actually spend with the item in question, such as when we drive a new car," says the professor.
Because it allows consumers to use the product only for the desired time, in addition to enabling greater diversity in consumption, the sharing economy ends up enhancing this feeling of satisfaction!
So, it's quite likely that you didn't even know that, through some routine choices, you end up contributing to this multifaceted and attractive system, isn't it?
But now, tell us: what types of shared services have you used?
