What is the sharing economy?
Airbnb, Uber, Lime or Fiverr - they all are currently disrupting entire industries. If you take a closer look at these companies, you can see what they all have in common - they are part of the sharing economy. But what exactly is this sharing economy that you hear about more and more often? The sharing economy refers to companies, business models, platforms, and online and offline communities that enable the sharing of fully or partially unused products and resources.
Current trends in the sharing economy
Basically, this sharing economy can be thought of as a large market shaped by trends that almost everyone has probably come into contact with.
One example of such a trend is the will of consumers to sustainably reduce their own Co2 footprint. In addition, these consumers also expect companies to operate more sustainably.
A second trend that should not be underestimated is an increasing economic rationality, which can be observed especially in the younger generation. This shift in thinking primarily addresses the question 'why buying when you can rent'.
A third development that is having a significant impact on the sharing economy is the spread of digital platforms. This trend is arguably one of the most important, as it allows potential players to easily participate in the sharing economy. Not only does this lead to a much wider spread of the sharing economy, but it also enables founders to build disruptive business models from their own homes and scale them much more easily.
A fourth trend strengthening the sharing economy is globalization as well as urbanization. The result of globalization is that people on different continents can participate in the sharing economy. An example of this is the company Kickstarter, which makes it possible to invest in the same venture project from anywhere in the world. At the same time, urbanization is bringing people closer together, making peer-to-peer renting, such as that offered by www.rentya.de, much easier. People from the same area can share products and resources much more easily.
What is part of the sharing economy market?
If you look at data on the sharing economy from well-known management consultancies, you can quickly see the extremely large size of the market. Since the sharing economy phenomenon is still in its infancy, there are often difficulties in properly defining the market. However, there are some sectors that allow to at least partially segment the market. The mobility sector is particularly evident through the various car sharing companies such as WeShare. The retail sector, as well as the tourism sector, are also currently experiencing great growth, which is largely due to companies such as Airbnb. Other sectors include entertainment/telecommunications with companies like Deezer, finance with companies like Kickstarter and Lending Club, energy with companies like Solar Share, and human resources with companies like Skill Share.
The sharing economy in numbers
The global market volume of the sharing economy, in the previously mentioned sectors, was approximately $13 billion in 2013 and is expected to grow to approximately $335 billion by 2025. 53% of sharing economy participants are between 18 and 39 years old. However, this share of market participants is accountable for a full 62% of total spending within the sharing economy (PWC, 2018). That the concept of the sharing economy works and is accepted by the market is beyond doubt. Thus, this is also true for peer-to-peer rentals. According to a survey by Goldman Sachs, 65% of respondents would prefer renting over buying. In Germany in particular, the sharing economy is enjoying increasing popularity. Already in 2018, 38% of Germans participated in the sharing economy - this trend will certainly have increased even more by today.
Rentya brings together product owners and potential renters, allowing them to exchange everyday items, tools and other products in an easy and secure way. Learn more at www.rentya.de.