sharing economy

Question 1

what is the definition of sharing economy from the reading?

Answer 1

CONSUMERS GRANTING EACH OTHER TEMPORARY ACCESS TO UNDER -UTILIZED ASSETS FOR AN EXCHANGE OF MONEY.

Question 2

examples of a sharing economy

Answer 2

Uber, Airbnb, Bixi, sharing ecosystem within apartment (not necessarily exchange of goods), coworking spaces, library

Question 3

company examples of sharing economy

Answer 3

• Rent the runway
• library of things
• Task Rabbit (mostly services)
• wework
• Hello Tractor (access for farmers to tractors in Nigeria, Uber but with smart tractor operators)

Question 4

Types of sharing economies

Answer 4

• recirculation of goods
• exchange of services
• increased utilization of durable assets
• sharing of productive assets

Question 5

describe some considerations of understanding the sharing economy?

Answer 5

• Does it matter who is benefitting (C2C vs. B2C)
• Who owns the asset?
• Who is responsbile?

Question 6

Describe car sharing

Answer 6

-Short term
-Often for local travel
-For a few hours at a time
“. . . the short term rental of automobiles for individual use, often for local travel for a few hours at a time . . . provid[ing] private vehicle access on an as needed basis without the burden of car ownership.”
-could be peer to peer models or B2C

Question 7

What differentiates car sharing from rental?

Answer 7

• Ease of reservation and use of car
• Shorter length of rental period
• Likely shorter travel distance
• Cost structures and what’s included eg. Gas, insurance
• Locations of cars
• Variety of vehicles

Question 8

describe the customers and market for car sharing

Answer 8

• Niche market: plenty of room to grow, but limited market
• Customers’ characteristics:
– Urban
– Drive less/use public transit
– Singles or couples with no or few children
– In their 30s to 40s
– Higher education level
– Higher income level
– Environmentally conscious
– Alternative to owning a second car

Question 9

What are the key learning points of the sharing economy? (3)

Answer 9

1. Business model where economic and environmental goals are aligned
   - ->Attractive and cost effective offering that does not require users to sacrifice in order to benefit the environment
2. Accurately assessing environmental impact is difficult
   - -> Crucial to develop a meaningful and effective strategy for sustainability.
3. Social entrepreneurship can take many guises
   - ->No preferable mode (for-profit or not-for-profit)

Question 10

what is the take-away of the sharing economy vs. traditional capitalist model?

Answer 10

• Traditional capitalist model
– Make – Use –Waste regular profit-making business models
– Huge environmental impact which does not allow for sustainable growth.
• Sharing Economy
– Reduces the number of things being consumed
– If evidence supports a net green result …
– Promoting growth for profit seems realistic in the short-term to change consumption habits.