As has often been said, two of the most obvious instances of the sharing economy are carpooling and renting out homes on a short-term basis. For instance, Airbnb gives homeowners the opportunity to rent out a portion of their entire property to travelers for shorter or longer periods of time.

The operation is as follows:

Airbnb is an online marketplace that brings together homeowners who have extra space with others who are interested in renting that space. When someone leases a room or the entire home through Airbnb, they pay the homeowner directly. Airbnb, on the other hand, takes a fee in exchange for the service it provides in facilitating the transaction. Similar functionality can be found on other vacation rental websites, such as Homeaway and Booking.com.

Other instances of the sharing economy include the following:

Workspace sharing, such as that which is provided by Wework Reselling via apps or websites, such as eBay or LetGo Peer-to-peer lending sites, such as Prosper or LendingClub Equipment rental apps, such as Sparetoolz Clothing rental services, such as Rent the Runway or Tulerie Delivery services, such as DoorDash or Seamless Grocery shopping and delivery services, such as Instacart or Postmates Workspace sharing, such as that which is provided by Wework

Note

Consumers may be required to pay a charge in order to utilize sharing economy applications, despite the fact that these apps may provide more easy access to services or items. 

Comparing the Benefits and Drawbacks of the Sharing Economy

Both consumers and those who engage in gig work stand to benefit and suffer from the sharing economy to varying degrees. A look at the benefits and drawbacks of a shared economic paradigm is provided here.

Pros

Possible reductions in the costs of various goods and services

Taking up gigs can result in additional sources of revenue.

Access to more goods and services has been expanded.

Cons

Concerns for the well-being of both employees and customers

The absence of regulation can sometimes cause problems.

There may be threats to one’s data and privacy.

The Positives Exposed

Sharing resources has the potential to result in lower costs for customers, which can be translated into cheaper prices for a variety of goods and services. For instance, spending $20 per week on shared trips can be a more cost-effective option than purchasing, insuring, and maintaining an own automobile. Work in the sharing economy is common among Americans, who make up a significant portion of those who participate in side hustles and other forms of supplemental employment. If you have experienced a salary reduction or if your wages have been stagnant, it may be difficult for you to keep up with the rising cost of living. 5 Gig job may be able to provide the much-needed additional cash you require.

The sharing economy can make it simpler to acquire goods or services, which can result in increased access to such goods or services. If you spent the most of the year 2020 at home, with the exception of going out for absolutely necessary errands, you might have relied on a supermarket delivery service to keep your kitchen filled with food. The sharing economy is characterized by an increase in conveniences such as these. 

Defining the Drawbacks

Gig employment, whether it be doing the work yourself or hiring someone else to do it, can involve certain dangers for both the worker and the customer. An Uber safety report that was published in 2019 indicated, for example, that between 2017 and 2018, there were approximately 6,000 incidents of sexual assault and 19 fatalities involving drivers and riders.