“Sharing economy” is an economic model based on sharing, rather than everyone owning everything they need privately. It works by renting, lending, exchanging and sharing items among people. For example, a group can share a car in what is known as a carpool.

Examples of a Sharing Economy

During the 21st century, there has been an expansion of services based on the sharing economy model. The most common examples are different taxi services with private cars, such as Uber. More so, house rentals between people, like Airbnb. Dogsitting, office spaces and delivery services are other common examples.

The expansion of these kinds of services is related to the internet and urbanisation. More so, the growing habit of using social media and the increasingly globalised world.

Environmental benefits

Since a sharing economy builds on the idea of sharing, it is good for the environment. Sharing things like cars and housing has a positive impact. For example, the items get used more frequently. More so, it contributes to fewer new productions, which generally have significant emissions. A sharing economy has many more positive effects. In the long run, it can also mean that people need less housing space. As much space gets taken up by the need to store items. At best, this economy could contribute to smaller housing needs per person.

Economical benefits

Another important benefit is that a sharing economy lowers the costs for people to access the items they need. It could also mean extra income for people who rent out their things. The latter can also positively influence the market, as there is greater competition. For example, traditional actors in the car rental sector have improved their services to keep up with the development.

Other things that are good for sharing are lawnmowers, tractors, washing machines and vacuum cleaners. Even more fun items like decorations and lights/sound for parties can be great things to share. Smart things to share can differ if you live in the countryside or the city. For example, neighbours in the countryside can share all motor- or electricity-driven items (such as chainsaws and pressure washers) which are not used daily. Neighbours in the city can naturally share these items as well, but if one lives in smaller apartments, it is better to share things like vacuum cleaners, washing machines and/or bikes.

More about a sharing economy

A sharing economy is also known as a collaborative economy and/or a peer-to-peer economy. The most common trait is that it facilitates transactions between people.

Finally, in some nations, the tax offices view sharing economies negatively since most transactions should be declared and taxed. Since the transactions of a sharing economy do not flow through traditional businesses, many collaborations are not taxed. In some nations, however, smaller incomes are below the limits of what needs to be declared.