In the digital disruptive time, it is very important for a business to quickly adapt to the change of the world. Many business have digitally transformed, using digital as a tool to create new value to the customers. The sharing economy has seen notable growth in the last decade with a boost of technology. Many companies found a gap between supply and demand as an opportunity to create a mutual platform to bring both sides together, such as Uber, Airbnb, Postmates.

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So, why is sharing economy good? It is found that 95% of the time cars are left idle and that is a lot of opportunity cost. By offering a way for people to utilise their idle assets like living spaces, vehicles and an economic option for consumers, it is a win-win situation for both parties on both ends.

Moreover, it is believed that sharing economy also helps with sustainability. By utilising otherwise unused goods will lower the demand for a new purchase. New opportunities for self-employment also come with this new model, giving people a choice to side hustle or to generate additional income from the comfort of their own home. For instance, services like Airbnb has given seniors from 60 year-old an option to make money after retirement as they account for 56% of the hosts in 2020.

Or is it?

While China and Korea welcome sharing economy with open arms, some have a lot more issues with it. The first being that people participate in this economy, especially as service/product providers, are not legally protected, which leads to a discrepancy in the power dynamic, create inequality in labour since people have their monthly income depending on a platform. Companies like Uber and Lyft are under heavy criticism for exploiting their employees and driving them to the breaking point. It also took the job away from many traditional taxi drivers and disrupt housing and rent price. While advertising that it could help you earn extra money, many found themselves struggling to meet their ends. Many of these sharing economy companies also face a lot of criticism regarding law and regulation, either misconduct or taking advantage of loopholes.

As the economy evolves, better law and regulations need to be made to better protect the participants as well as the incumbent business. While bringing some good, it also has a lot to improve. We have to find the balance that everyone can compromise with. In the end, whether it is good or bad is up to each individual’s evaluation, so what are your opinions?  And where do we move from here?