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The sharing economy is picking up speed. It is defined as a peer-to-exchange of goods and services, in which citizens rent or share resources. Companies involved in the sharing economy include Airbnb—where a host rents out part of his or her home to someone looking for a temporary place to stay. Companies like this are growing in size and it would bode well for business owners to adopt some of these characteristics in order to increase the chances of being successful.
A huge reason as to why companies within the sharing economy are so successful is because they are all about the customer experience. These companies bring an interpersonal connection so that all parties involved feel connected. For example, with the company Lyft—a service much like a taxi except the drivers use their own car—the service is able to create a more personal experience by offering the rider to sit in the front seat, next to the driver. This makes the ride seem less like the customer is being chauffeured around, and more like they’re being picked up by a friend.
Another integral reason for the increased prevalence of the sharing economy is because many have learned from the Great Recession. We have all seen firsthand what it’s like when people borrow more than they can pay back. In this way, the American Dream ethos in which owning your own home is what you most desire, is dwindling away.
Millennials seem to utilize the sharing economy the most. They like the idea of travel and having the ability to move from place to place without being tied down. According to Randall Lane, editor of Forbes Magazine,”millennials, the ascendant economic force in America, have been culturally programmed to borrow, rent and share.” And since millennials are large in number, it makes sense to cater your business to this generation.
Many millennials are latching onto the idea that the sharing economy is a better way for them to earn money as well. With the sharing economy, they can be their own boss and choose what services they want to perform. For example, TaskRabbit is an online marketplace in which someone requests a service and interested “taskers” can bid to complete the service of their choice for compensation. Click here to learn how you can capitalize on the sharing economy for business success.