In the era of the digital revolution, another phenomenon is arising. It’s the sharing economy.

Many of the most successful new companies of the last decade are based on that exciting sector.

It’s Airbnb, Uber, Lyft, WeWork, BlaBLaCar, and others. The mobility of people plays an important role in all this. All is in motion, even the market of hospitality, the housing sector, car rent. Established companies like big Hotel chains, carriers, car vendors, and local taxi enterprises are losing ground.

A new generation of consumer groups is not willing anymore to spend horrendous money on a car that is only used a few hours a day. In developed countries possessing an own car is not a status anymore. It’s more a residual of the old mind. Environmental issues and an increased need for lifetime efficiency’, demands new solutions and services.

What seems to be just a shift into another lifestyle will bring a fundamental change on all levels, in the good and in the bad. If we watch the opportunities, for getting money-saving services, it will be for sure a benefit for many. If, on the other hand, we watch the conditions for workers, the development will create some new challenges for those workers. Self-employment will become a standard because companies will develop more and more also shared workplaces and shared workplace contracts. The Uber driver is already self-employed competing not anymore only with other taxi drivers but competing with hidden algorithms.

IoT and cloud-based platforms will distribute the workloads for less and less retribution for the single workers. Humans will get integrated more and more into a system of digital preferences instead of personal interaction and empathy. The working time will be extended, although it will become more flexible. Also, the lifetime working time will get longer. For digitally skilled senior remote workers it will be possible to work from everywhere. Coworking housing concepts are the answer to that new trend. While Cohousing once was the first choice for students, it’s nowadays a way to share spaces for essential living. Saving money and consumption and fight against loneliness.

Nevertheless, the sharing economy will foster personal development and consumption reduction.

And much more:

Reducing negative environmental impacts through decreasing the number of goods needed to be produced, cutting down on industry pollution (such as reducing the carbon footprint and overall consumption of resources).

Strengthening communities.

Lowering consumer costs by borrowing and recycling items.

Providing people with access to goods who can’t afford to buy them. Or have no interest in long-term usage.

Increased independence, flexibility, and self-reliance by decentralization, the abolition of monetary entry barriers, and self-organization.

Increased participatory democracy.

Accelerating sustainable consumption and production patterns.

Increased quality of service through rating systems provided by companies involved in the sharing economy.

Increased flexibility of work hours and wages for independent contractors of the sharing economy.

Increased quality of service provided by incumbent firms that work to keep up with sharing firms like Uber and Lyft.

Flexible and convenient work hours: The sharing economy allows workers to set their own hours of work. An Uber driver explains, “the flexibility extends far beyond the hours you choose to work on any given week. Since you don’t have to make any sort of commitment, you can easily take time off for the big moments in your life as well, such as vacations, a wedding, the birth of a child, and more.” Workers are able to accept or reject additional work based on their needs while using the commodities they already possess to make money.

Low barriers to entry: Depending on their schedules and resources, workers can provide services in more than one area with different companies. This allows workers to relocate and continue earning income. Also, by working for such companies, the transaction costs associated with occupational licenses are significantly lowered.

Maximum benefit for sellers and buyers: Enables users to improve living standards by eliminating the emotional, physical, and social burdens of ownership. Without the need to maintain a large inventory, deadweight loss is reduced, prices are kept low, all while remaining competitive in the markets.

Environmental benefit: Access economies allow the reuse and repurpose of already existing commodities. Under this business model, private owners share the assets they already possess when not in use.