Two different economies

World economies are constantly changing as a result of technological innovation. This results in the emergence of new professions, creative endeavors, and income-generating activities. While working only from offices used to be the norm, today’s society encourages telecommuting, flexible work schedules, and the accessibility of global internet service providers like Uber. The sharing economy and gig economy have resulted from them. The contrasts between the two, despite the fact that they are identical in many aspects, are covered in this article. 

Describe the sharing economy

An online platform is used to facilitate the sharing, buying, and offering of products and services in this economy. This makes it possible for people to monetise and share idle assets. Particularly in this day and age, connecting and facilitating trade between asset owners and seekers has never been simpler. For instance, Airbnb has made it easier to use vacant apartments. Clients can obtain lodging at a lesser cost than in resorts as a result, while homeowners can generate additional cash from idle assets. Among the additional participants in the sharing economy are:

Co-working spaces- With many sites globally, these provide working places for freelancers and work from home professionals. The fees vary according to how long is spent in the workspaces. Companies that offer money lending services at a lower cost than those provided by the conventional money lending institutions are known as money lending platforms.

Platforms for independent work—Online resources like Upwork connect customers with service providers all over the world. 

Regulatory Uncertainty- The sharing economy is governed by federal authorities. This is one of the difficulties experienced in a sharing economy. These services may be offered by unregistered companies that may benefit, ruining the market. Complaints have been expressed about the lack of protection for consumer data and its sharing with outside parties. Concerns about safety have arisen frequently on websites like Airbnb and Uber.

Describe the gig economy

Jobs that are transitory and flexible are prevalent in this economy. In this situation, businesses choose to use internet platforms to hire independent contractors and freelancers. Increased service efficiency and lower prices are the results of the gig economy, in addition to the convenience and flexibility that come with flexible working arrangements. For instance, finding a taxi before the advent of the internet was difficult and they weren’t always available. The ease offered by companies like Uber is unsurpassed. Companies gain from saving money that would otherwise be used to pay full-time staff or for offices, and employees gain from having flexible work arrangements. 

The gig economy has certain drawbacks in addition to its perks. Gig workers could not be eligible for certain benefits like insurance and paid time off. As there is no supervision in this workplace, establishing a routine could be challenging. They lead to problems including sleep pattern disruption and daily routine disruption, both of which may have an impact on mental health. Contracts may not always be in accordance with one’s professional route, which compromises the development of careers. The inability of employers to access employees when necessary can have an impact on business operations, not to mention the deterioration of relations between employers and employees. 

Comparative advantages of the gig and sharing economies

Both make use of the resources at their disposal to promote economic activity. They both act as a link between service providers and customers. 

Variations between the gig and sharing economies 

Definition

An economy centered on sharing, buying, and offering products and services through the use of an online platform is referred to as a sharing economy. A gig economy, on the other hand, is characterized by flexible and transient occupations involving freelancers and independent contractors. Also a gig economy bridges the gap between employers and independent contractors, whereas the sharing economy bridges the gap between owners of idle assets and customers.

Advantages

A sharing economy has the benefit of utilizing idle assets for asset owners, generating extra cash, and making these assets more affordable and convenient for consumers. On the other side, the benefits of a gig economy also include a rise in convenient and cost-effective services, as well as the freedom that comes with flexible working arrangements. Companies gain from saving money that would otherwise be used to pay for offices or full-time employees while employees gain from a flexible work environment. 

Disadvantages

Uncertain regulation, which could give an advantage to unregistered enterprises offering these services and destroy the industry, a lack of customer data protection, and countless incidents of safety concerns on some platforms are all drawbacks of the sharing economy.The lack of work benefits like insurance and paid time off, lack of a routine for employees that may damage mental health, and the delayed development of professions are some of the drawbacks of the gig economy. The inability of employers to access employees when necessary can have an impact on business operations, not to mention the deterioration of relations between employers and employees.