The disruptive element of the technology is that it allows a user to connect to people who have spare resources and are willing to share them (hence the term sharing economy).

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As the name suggestssharingeconomybasicallyenable peopletoshare theiridle cars,accommodation,
bicycles,householdappliancesandotheritems oranyservices withthe peoplewillingtopaythemfor
the use. These servicesconnect the ownerof underusedassetswith otherswillingtopaytouse them.
Accordingto ResearcherChristopherKoopman,anauthorof the George Mason report,sharing
economyallows people totake idle capital and turn them intorevenue. The serviceswhichare based
on sharingeconomyactsas a matchmakerwhoallocate resourceswhere theyneededandtakesasmall
cut in return. . The disruptive elementofthe technologyisthat it allowsa user to connect to people
who have spare resourcesand are willingto share them (hence the termsharingeconomy).
Sharingeconomyis basically sharingofcreation, production,distribution,trade and consumptionof
goods and servicesby differentpeople andorganisations.
This sharing economyworks on "peer-to-peer" (P2P) model whichoffersnumerousadvantagesby
tappingunderutilizedresources. Thiseconomy canimprove consumerwelfare byofferingnew
innovations,more choices,more service differentiation,betterpricesandhigherqualityservices.The
internetmakesitcheaperandeasierthanevertoaggregate supplyanddemand. Smartphoneswith
maps andsatellite positioningcanfinda nearbyroomto rentor car to borrow. Online social networks
and recommendationsystemshelpestablishtrust;internetpaymentsystemscanhandle the billing.All
thisletsmillionsof total strangersrentthingstoeach other.The resultisknownvariouslyas
“collaborative consumption”,the “asset-lightlifestyle”,the “collaborative economy”,“peereconomy”,
“access economy” or “sharing economy”.Thissharingeconomyismore flourishedmainlyinUS,Eastern
Europe, SouthKorea,NewZealandandinAustralia.

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It is whole newdisruptivemodelwhichenteredintoseveral segments.Letshave alookat some of it
segments.
Sharing economy segments:
1. Accommodation
People are takingspare bedroom,cars,toolstheyare notusingand becomingtheirownentrepreneurs.
Such peer-to-peerrental schemesprovidehandyextraincome forownersandcanbe lesscostlyand
more convenientforborrowers.Occasionalrentingischeaperthanbuyingsomethingoutrightorrenting
froma traditional providersuchasa hotel.
The best-knownexampleisAirbnb,basedinSanFrancisco,whichhashelped4mpeople findplacesto
stay since itwasfoundedin2008—2.5m of themduring2012 alone. Travelerscan rent a room or a
whole home or a British castle on Airbnb.Airbnbtakesa cut of 9-15% of the rental fee.Othersoffering
similarservicesincludeRoomorama,Wimduand BedyCasa.
2. Ride sharing
Car-sharingschemesdivide intopeer-to-peercar-rental servicesinwhichyoupaytoborrow someone
else’scar(Buzzcar,Getaround,RelayRides,Tamyca,Wheelz,WhipCar) andtaxi-like services(Lyft,
SideCar,Uber,Weeels)inwhichpeople use theircarsto ferrypaying passengers. Some peer-rental
schemesfocusonparticulartypesof customer,suchas students,orparticulartypesof vehicle,suchas

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high-performance cars.Peer-to-peertaxi servicesuse location-awaresmartphoneapps,coupledwitha
central dispatcher, tobringdriversandpassengerstogether.
Some peer-rentalservices(includingAirbnb,RelayRidesandLyft) integratewithFacebooktoletowners
and renterscheckto see whethertheyhave friends(orfriendsof friends) incommon. All the above
servicesfocusoncreatingtrustingcommunitywhenitcomestoattractingusers.
Uberis the bestknown platform in the sharingeconomy, havingreached a valuation of $40 billion
while expandingto more than 200 citiesin54 countries. Getraround,Relay Rides, Liquidto rent bike ,
Lyft, SideCarare some of the otherpopularride-sharingservices.
Park at my House providesaffordableandfine-free parkingwhichenablingproperty-ownerstorentout
theiremptydriveways,garages,andcar parksto driversneedingsomewhere topark.
3. Logistics
Logisticscompanieshave come upwiththe share-economymodeltoimprove theirgreensustainability
and eventocope up withskyrocketingpricesof fuel. inanyconsignmentwhenthere isfree space in
theirvehicle theyallowotherbusinessestobookinforthe extraspace left.Thisreduce theiroperational
cost, evenbusinesses are benefitedwhentheircostsare cut for the idle space theyare notusing.
Schneider’sIntegratedDeliveryService (IDS) isa shared-channel approachwhere competitorswho
move freightinthe same geographicmarketsare actuallysharingsupplychains.Kimberly-Clarklogistics
are alsointhisspace.
4. Warehouse (Multi-ClientWarehouse)
Idle warehouse spacesare alsorentoutto the businessinneedof it. Thiscollaborative warehouse
space,whichincludesitslaborandequipment,drivesdownthe cost perunit. It alsoletsthe businessto
economicallyexpandthe warehouse footprinttoaccommodate growth. Thisrequires lettingabusiness
pay onlyforthe space andlabor theyrequire. Multiple clientsinasingle distributioncentershare costs.
Californiabased WeberLogistics,Ohiobased ODW logisticsare some of the well-knownmulti-client
warehouse serviceprovider.

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5. Co-workingSpace
Coworkingisa flexibleandcommunity-orientedworkspace optionforbusinesstravelers,independent
workers,andentrepreneurs. The startupsin these sectors are the real-timemarketplace model tooffice
and meetingspace which are shapingthe future of commercial real estate.
LiquidSpace is the largestreal-time marketplace forprofessionalmeetingandworkspace.
6. Finance
The sharingeconomy isalreadyreshaping the industrythroughP2Plending,social payments,
crowdfundingandP2Pinsurance.All kindsof crowdfunding sitescanbe consideredoverhere.
Kickstarter isa crowd-fundingsite poweredbyaunique all-or-nothingfundingmethodwhere projects
mustbe fully-fundedornomoneychangeshands. LendingClubisthe well-knownonlinelending
platform.Policybazaarinindiaisanotheronline service providerwhichhelpsfindingsuitable policyto
the buyer.
7. Food
There are some peer-to-peerplatforms where people make foodandsell tothe people inneedtobuyit.
Here the sellersare willingtoshare theirresources withthe buyer. Thisprovidesagreatoption tohome
cookedfoodlover.
EatWith andMealSharing can connectyouwitha personwhois willingtocooka meal foryou.

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8. Market-place
HouseholdServices
Thissegmentcanbe calledasthe most disruptedof the sharingeconomy. These marketplaces connect
the blue collarprofessionals forhouseholdwork withotherswillingtopayto use them. Theybasically
acts as peer-to-peermarketplace forthe commonyetcomplicatedhouseholdtasksuchasrepairing,
cleaning,handiwork,movingof assetsworkandotherblue-collarjobs.
TaskRabbit isa mobile marketplace forpeople tohire people todojobsandtasks, fromdelivery,to
handymanto office help.Foundedin2008, the site has4,000 Taskrabbitsonthe service nationwidewho
bidto do tasksthat are postedbypeople lookingforaservice.All the "rabbits"are interviewedandhave
theirbackgroundscheckedbefore goingonthe system. SimilarservicesinIndiaare Housejoyand
Doormint whichare popular.
DogVacay isa pet-sittingservice whichallowsdogownerstoleave theirdogwithahost whowill take
care of them.It'scheaperthana kennel andgivesdogsamore comfortable place tostay,the company
says.
9. HouseholdLending
There are variouspeer-to-peerrental sitesforhouseholdgoodslike kitchen appliances, gardeningtools,
home décor,apparels, handbags,populardesignershoes, toys,childrenwearingandmanymore.
Snapgoods isthe site for lendingandborrowinghigh-endhouseholditems,suchascameras,
kitchenware ormusical instruments.
10. Music or Videostreaming,Booksandothermedia
In thisspace music,video,booksorgamesare sharedwitha charge rent onit.
Swap.com isthe leadingonlineswapmarketplaceforbooks,movies,musicandgames.Theyare now
swappingeverythingfromapparelstotoysandbabyproducts.
11. Others
StartupFon enablespeopletoshare some of theirhome Wi-Fi networkinexchange forgettingfree Wi-
Fi from anyone of the 7 millionpeopleinFon'snetwork. Boatboundoffersshort-term, peer-to-peer
boat rental.There are alsopeer-rental sitesforcar-parkingspaces(Airbnbforcars,ineffect),bicycles,
photographickit,musical instruments,garden equipment,outdoorgear,andsoon.
The researchfirmPwC estimatesthat these fivesharingeconomy segmentscouldbe worth $335 billion
by 2025, up from just$15 billiontoday. All these servicesrelyonratingsandreciprocal reviewstobuild
trust amongtheirusers. Many platformsalsocarryout backgroundchecks,lookingintotheirusers’
drivingandcredithistoriesandcheckingforcriminal records
As theybecome more numerousandmore popular,however,sharingserviceshave startedtorunup
againstsnags.There are questionsaroundinsurance andlegal liability.Some servicesare fallingfoul of
industry-specificregulations. Asthe sharingeconomyexpands,itisexperiencinggrowingpains.
Landlordsare clampingdownontenantswhosub-lettheirpropertiesinviolationof the termsof their
leases.Tax collectorsare askingwhetherall the income fromsharingschemesisbeingdeclared.

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Meanwhile,the bigboysare movingin,aslarge companiesthatface disruptionfromsharingschemes
start to embrace the model themselves.
Thistransitionwill have apositive impactoneconomicgrowthandwelfare,bystimulatingnew
consumption,byraisingproductivity,andbycatalyzingindividualinnovationandentrepreneurship.
Some industries -- liketaxi servicesintransportationandB&Brentalsintravel – are envisionedtobe
completely transformed,while others,suchasfinancial services,will be onlyperipherallyimpacted.This
ispart of the 'technologyrevolution,'aswell asa new norm. It is alsodiscussed bymanyresearchers
that itis greatfor people tohave an optiontoworkin theirspare time andmake extramoney, butthat
it still lacksthe benefitsof full-time employment. Whatlookslikeadisruptive newmodel will probably
endup beingmixedintoexistingmodelsandembracedbyincumbents.

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Ref:
http://www.stern.nyu.edu/experience-stern/news-events/prof-arun-sundararajan-s-congressional-
testimony-sharing-economy-cited
http://www.dailymail.co.uk/wires/afp/article-2939000/Sharing-economy-reshapes-markets-complaints-
rise.html
http://www.thepeoplewhoshare.com/blog/what-is-the-sharing-economy/
http://www.economist.com/news/technology-quarterly/21572914-collaborative-consumption-
technology-makes-it-easier-people-rent-items
http://techcrunch.com/2015/01/03/the-sharing-economy-and-the-future-of-finance/
http://www.prnewswire.com/news-releases/liquidspace-raises-14-million-in-additional-funding-
280902432.html
http://www.collaborativefinance.org/sharing-economy/
http://www.insightonbusiness.com/5735/shipping-logistics-%E2%80%93-sharing-the-ride-%E2%80%93-
local-shipping-logistics-companies-use-technology-to-innovate-for-clients/
*A Peer-to-Peer,orP2P,Economyisa decentralizedmodel wherebytwoindividualsinteracttobuyor
sell goodsandservicesdirectlywitheachother,withoutintermediationbyathird-party,orwithoutthe
use of a companyof business.The buyerandthe sellertransactdirectlywitheachother.Because of this,
the producerownsboth theirtools(ormeansof production) andtheirfinishedproduct.