Posted by Kavita Jaswal on December 16th, 2015
In today’s need-based society, consumer wants are at the forefront of marketing and advertising plans. But ever since the economy crashed in 2008, consumers want to buy a company’s goods or services, but don’t want to pay a lot for them. Enter the Collaborative Economy or Sharing Network, which allows individuals to share goods and services with each other. This new business phenomenon has changed the way consumers use products and services, especially automobiles and hotels, because why buy something, when you can rent it?
The Collaborative Economy, which houses companies, such as Airbnb© and Uber,™ gives individuals the ability to simply tap their phone to request, book and confirm a product or service. This economy has formed seventeen billion-dollar companies and has increased 25 percent in 2015 alone.1 It would be hard to deny the simplicity of booking your vacation with another individual instead of booking your stay online, going through a third-party vendor, or, dare I even say, calling in your reservation. Airbnb is available in over 34,000 cities and 190 countries, scoring a value of $25.5 billion.2
Gone are the days you hail a cab and wait in hopes that a car will drive by without that “occupied” light on. Uber has taken the idea of a personal driving service and the relative lower fare of a cab and combined the concept to create an in-expensive alternative that appears with a click of the “submit” button. Even with competitors edging into the mix, they are staying ahead of the game being “valued at more than $50 billion.”3
These are just a few examples of successful Collaborative Economy companies, and, it is safe to say there are plenty more out there. The landscape of product and service offerings has changed with the continued emergence and use of technology, and the rising trend of peer-to-peer offerings is just another wrench thrown into the competitive environment of organizations.