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Sharing Economy

Media (R)evolutions: What’s the future of the sharing economy?

Darejani Markozashvili's picture
New developments and curiosities from a changing global media landscape: People, Spaces, Deliberation brings trends and events to your attention that illustrate that tomorrow's media environment will look very different from today's, and will have little resemblance to yesterday's.

Globally, more and more people are embracing the sharing or platform economy. Some estimate that the sector’s revenues will increase to $335 billion globally by 2025. According to the  Future Jobs Survey, conducted by the World Economic Forum , among top technological drivers of industrial change by 2020, the sharing economy, crowdsourcing takes the fifth place, with mobile internet, cloud technology taking the lead.
 


So what will the impact of these drivers be on the industries? Will there be new industries born as a result of these transformations? If so, will we be able and ready to respond to those changes? Will we have necessary skill sets to compete in the work force? Future holds both opportunities and challenges for industries, corporations, governments, and others concerned with the technological advancements.
 
What exactly is the sharing economy? Are you using some of its platforms? Do you benefit from their services? 

The things we do: Why people hate Uber’s surge pricing so much

Roxanne Bauer's picture

Globally, citizens from Guadalajara to Chengdu both love and loath ride sharing app, Uber. 

We love it for the convenience, the ease with which we can pay, and the ability to avoid intemperate weather conditions— all though a few taps on our mobile phone. 
But… we loath it when surge pricing is in effect.  “Surge pricing” increases the cost of rides by many times the normal fare when demand is swelling, most commonly at rush hour, during inclement weather, or on a public holiday.  In these cases, the supply of drivers is constant or even low, creating a shortage of available rides.  By raising the price of each ride, Uber encourages more drivers to pick up passengers and rations the available supply of rides to the customers who value the service the most (those who are willing to pay more).
 
Nevertheless, while surge pricing may make economic sense, it feels like price gouging for many customers.  The recent clampdown on surge pricing by the Delhi and Karnataka governments illustrates the intense debate over Uber’s policies that has been circulating worldwide. Delhi chief minister Arvind Kejriwal even called surge pricing “daylight robbery”.
 
The debate has polarized opinion not just in India, but also in cities as diverse as Sydney, Paris, New York and Budapest. The reaction is even more severe when there is an emergency, such as during the December 2014 hostage crisis in Sydney, where a masked gunman held people captive in a café. As the central business district was cleared out by police, surge pricing automatically kicked in. Customers were appalled by Uber’s apparent insensitivity to the situation. The outrage grew so intense that Uber was forced it to suspend surge pricing and offer free rides.

Media (R)evolutions: Digital companies don't need to 'own' anything when they can share

Roxanne Bauer's picture

New developments and curiosities from a changing global media landscape: People, Spaces, Deliberation brings trends and events to your attention that illustrate that tomorrow's media environment will look very different from today's, and will have little resemblance to yesterday's.

Traditionally, those with the largest empire or who controlled the most resources were considered to be the most powerful and successful. However, recent developments in digital technology have spawned a new breed of enterprise that dominates their respective industries without actually “owning” tangible assets.

The world's largest accommodation provider, Airbnb, doesn't own real estate. Alibaba, the world's leading e-commerce company, doesn't have any inventory. Facebook, the most popular media owner worldwide, doesn't create its own content. And Uber, the largest taxi company in the world, does not own any vehicles.

Nowhere is the sharing economy more disruptive than in rental/leasing services. This graphic, from PricewaterhouseCoopers in the UK, illustrates the expected growth of various rental sectors within the sharing economy.  These sectors are likely to grow much quicker than traditional rental sectors, and "the least developed sectors today, such as P2P finance and online staffing, could grow the quickest of all."

PWC Sharing Economy graphic