The collaborative economy is here to stay
ase with which we’re able to connect with others via an array of smart technology. This has given rise to new ways of doing business, a practice that’s collectively known as the collaborative or sharing economy. In short, individual sellers and buyers are connecting online, with time, currency and location being immaterial.
Two companies who’ve used the collaborative economy model – with great success – are AirBnB and Uber.
By monetising what’s essentially a sharing economy, these two pioneers of profitable business based on a collaborative economy have successfully introduced and firmly established an entirely new way of doing business.
Companies need to find innovative ways to solve common irritations and improve people’s quality of life.
This is why the collaborative economy has taken root, and is where companies can take advantage of it in order to expand their customer base. It’s estimated that the five main sharing sectors: peer-to-peer finance, online staffing, peer-to-peer accommodation, car sharing and music streaming have the potential to increase global revenues from around $15 billion now, to $335 billion by 2025.
The collaborative economy empowers both the individual and business by enabling them to form a mutually beneficial relationship.
Owjang predicts that the collaborative economy will evolve to see a new class of corporations host their own communities that enable customers to trade, rent and resell their goods and services in a brand-hosted community. This will enable new value for the brand by offering new ways to extract value thanks to a larger, diversified market.
As the collaborative economy takes root and grows from strength to strength, one thing’s for sure: it can only benefit established businesses who embrace this new way of doing things. Just like the internet, which is now an indispensable tool for all businesses, the sharing economy is set to rise from relative obscurity to an accepted and welcomed way of doing business.