The sharing economy’s success: advantages, drawbacks, and applications

Abstract

The emergence of intermediary platforms created networks that facilitate peer-to-peer interactions, as well as encourage the sharing of goods and services within the context of collaborative consumption and cost saving. This article sets out to inspect “why the sharing economy is so successful” and provide a critical viewpoint on the topic's essential ideas, while also taking a perspective on the advantages and disadvantages that affect the end users. A literature review paired with case studies of Airbnb, Uber, and other applications of the shared economy, looks upon how despite their rapid market growth in the past decade and public approval, such platforms caused disruptions to the markets they operate in. Results indicate that by being involved as a part of the collaborative consumption ecosystem, either as a provider or a user, the absence of personal ownership is key, while the utilisation of the product needs to be maximised to result in a pleasant experience. However, it is critical that the development of these platforms which thrive on connecting people stays closely monitored by regulatory bodies, and that the legislation needed for prevention of unethical practices follows quickly enough to ensure rightful operation.