Your Complete Guide to the Sharing Economy | Gigworker

The American economy is changing.

The sharing economy is now in full swing, and new companies using this business model seem to pop up every day.

It’s an exciting time for investors and others looking to cash in on this new economy but also a time of trepidation as these new businesses disrupt traditional industries.

But what exactly is the sharing economy?

You’ve probably seen the term in news headlines, but it can feel like a lot of journalists and analysts assume you already know what the term means.

If you’re feeling in the dark, then this article is for you.

Below, we define what the sharing economy is, as well as examine some of the major companies that are part of it.

Sharing Economy Definition

Lots of articles about the sharing economy can get quite technical, with discussions of economic models and lots of other jargon.

But the idea of the sharing economy is quite simple. It describes a system in which people or companies make money through sharing their assets.

“Assets” can refer to a wide variety of things, ranging from cars to houses to office spaces.

Within this sharing economy, you have a few different business models.

Most of the companies operating in this space serve as sharing platforms, which are basically middlemen that connect people who own assets with people who want to use them.

For this reason, you’ll sometimes hear people use the term “platform economy” when discussing sharing economy companies.

Of course, there are some cases where the sharing economy companies own the assets themselves (electric scooter companies like Bird are a good example), but it’s more common for the companies to ensure secure payment and trust between the people who are doing the sharing.

So what makes these new companies special?

After all, the idea of sharing assets in exchange for money is nothing new.

Car rental companies have been doing it for decades, as well as any other sort of business that rents out some kind of asset.

In fact, even individuals can participate in this sort of activity on a small scale, such as when you charge your neighbor a fee (or, more likely, trade some other kind of asset or service) in exchange for using your lawn mower or pickup truck.

What makes this new sharing economy business model different, however, is the way that companies are using online platforms to make sharing transactions easier.

These sharing platforms take a ton of the hassle out of sharing all kinds of assets.

For instance, you don’t have to go to the trouble of placing a classified ad, because the platform promotes what you’re sharing to a built-in audience.

Sharing platforms also ensure that the people who own the assets get paid and that the people renting the assets get treated fairly.

Finally, most sharing economy platforms include review or rating systems to keep all parties accountable.

Given all of the benefits, it’s no surprise that all kinds of businesses are adopting the sharing economy model.

And lots of individuals are also choosing to participate, which is having far-reaching economic effects both in the United States and abroad.

So what are some of the companies who are making waves in this space?

Let’s take a closer look.

8 Sharing Economy Examples Across Industries

A full list of sharing economy companies would be much too long to be useful or interesting.

Instead, we’ve picked some of the most influential, interesting companies in a variety of industries.

This way, you can get some real-world examples of the sharing economy without getting overwhelmed.

1. Airbnb

Almost no other company epitomizes the sharing economy better than Airbnb.

The company allows people to rent out their homes to travelers in exchange for money.

As the company’s name implies, they take cues from the long-standing bed and breakfast industry.

The difference, however, is that Airbnb makes it very easy for travelers to find, sort, and book properties almost anywhere in the world.

On the homeowner side, the listing process is also quite simple, leading to something that benefits everyone.

2. Uber and Lyft

Okay, so these are technically two separate companies, but the service they offer is so similar that it makes more sense to discuss them together.

Uber and Lyft are both ridesharing services.

Vehicle owners use a smartphone app to find and pick up passengers, who in turn pay for the “shared” ride that results.

The result is an opportunity for drivers to earn extra money while offering passengers greater convenience and lower prices compared to taxi services and other traditional transportation services.

Taxi drivers aren’t happy about the disruption this is causing in their industry, but the ridesharing apps are immensely popular among consumers.

Check out our introductions to Uber and Lyft to learn more about how these services work.

3. WeWork

If Airbnb is disrupting the consumer rental market, then WeWork (and other coworking space companies) are making a major disruption in the business-to-business rental realm.

Renting office space has traditionally been difficult and expensive.

Coworking spaces solve this problem, allowing freelancers and small businesses to save money by sharing office space with others.

Platforms like WeWork are particularly notable, as they make the process even easier through online systems that allow people and companies to find, rent, and use office space that suits their specific needs.

4. Zipcar, Getaround, and Turo

These three companies are all part of the growing car-sharing trend.

People who live in big cities with walkable layouts and robust public transportation often don’t need to own a car.

However, there are still times when having a car can be useful, such as when taking a weekend trip outside of town or traveling to a less accessible city.

Car rental companies have traditionally met this need, but they have their flaws.

To start, they didn’t offer a way to rent a car for just a couple hours at a time.

They were also notoriously difficult to deal with and failed to adopt new technologies.

It’s no surprise, then, that a new set of car-sharing companies arose to solve these problems.

Zipcar, Getaround, and Turo all offer essentially the same service, albeit in different ways.

Zipcar owns fleets of vehicles that are parked in central locations in cities across the United States and the world.

In exchange for a monthly subscription and hourly rental fee, users can rent these cars on demand.

Turo and Getaround also offer short-term car rental, but they take a slightly different approach.

Instead of owning the vehicles themselves, they allow car owners to list their vehicles for rent on the platform.

The result is an easier rental experience for customers and a way for car owners to earn extra money from vehicles that would otherwise just sit idle.

5. Spinlister

Renting cars is cool, but what if you need to rent a bike or other sporting equipment?

This is the service that Spinlister provides.

They connect equipment owners with renters around the world.

The focus is definitely on bikes, but you’ll also find skis, surfboards, snowboards, and more.

Owners get to earn extra money from their unused gear, and renters get the benefit of the equipment they need even while traveling.

6. Lending Club

So far, we’ve discussed services that involve sharing physical assets.

However, the sharing economy can also include financial assets in some cases.

Lending Club is a prime example of this.

They offer a more affordable way for people to pay off debt through a process known as peer lending.

Qualified investors can put their money to work through loans to individuals, offering a way to earn independently of the broader stock market.

At the same time, borrowers get competitive interest rates and the chance to consolidate debt or finance large purchases such as cars or home improvements.

7. JustPark

Sometimes you need to get a car, but other times you just need a place to park the car you already have.

If you regularly drive in the city, you know how difficult it can be to find a parking space.

And even when you do find one, you often have to pay exorbitant prices.

JustPark is an app that aims to help you find parking at an affordable price.

They partner with property owners around the world to offer affordable hourly, daily, and monthly parking.

Property owners get the benefit of earning money from their vacant land, while drivers get the peace of mind that comes with a guaranteed parking space.

8. Bird and Lime

If you’ve walked around any major city lately, you’ve probably seen (or almost been run over by) people riding electric scooters.

Electric scooters are nothing new, but a new wave of scooter sharing companies has made these vehicles much more accessible and prominent.

With both Bird and Lime, you can rent an electric scooter by the minute using your phone.

When you’re done with the scooter, all you have to do is park it in pretty much any (legal) spot and go about the rest of your day.

These companies are controversial, but they do offer an easy way to get around, particularly when used in combination with public transit or ridesharing services.

We should also mention that Lime offers dockless electric bikes for rent using much the same model.

The Sharing Economy Is Here to Stay

We hope this guide has helped you understand how the sharing economy works, as well as get a better sense of which companies are (and aren’t) a part of it.

The sharing economy will continue to evolve as more companies and people take part in it, but it appears that, at least for now, this new economy is here to stay.

It may mean the end of certain traditional companies, but it’s also the beginning of a new era of economic opportunity for both corporations and individuals.