?WHAT IS A SHARING ECONOMY

The shared economy came to our day from the digital age. It is a general term with a variety of meanings, which is often used to describe the economic activity that involves online transactions.
Originally emerged from the open source community to refer to the exchanges or transactions that are carried out from person to person, rather than business to person.
Although these exchanges can occur in various ways, the development of online platforms, mostly led by startups , have managed to simplify transactions and reach a greater number of people.
Shared economy is the one that facilitates the direct exchange of goods and services between individuals.

?HOW DOES THE SHARING ECONOMY WORK

One of the models that gain more followers day after day is the sharing economy, which is based on lending, renting, buying or selling products based on specific needs and not so much on economic benefits. In fact, in this system, it is possible that money is not the only exchange value for transactions.
In the sharing economy, there is a monetary exchange but it allows that without intermediaries it is much cheaper to acquire a good or service.
Today, the consumption of collaboration allows owners of non-used items to rent them to those who need them for a limited time, from a car to a house or bicycle. This class of services is also known (P2P) “peer to peer.” Companies of this profile provide reviews and comments that allow both parties involved to have sufficient confidence in each other to generate the transaction.
In simple terms, also known as collaborative economics, it is a mechanism that responds to the need of the consumer to find a mechanism outside the traditional company-client.

WHAT IS SHARING ECONOMY BUSINESS MODEL

This type of business works from a technological platform that joins supply with demand. That is, it unites those who offer a product or service, with those who are interested in acquiring it. Through this type of economy, all parties benefit: who offers, who receives and who makes the union between them.
If you are interested in starting a business of this type, the first thing you should think about is: what type of product can be sold or rented through this model? Look for options that people are willing to acquire quickly and easily using their smartphone or website.
Make provision for your product or services to be tracked by GPS, implement an electronic billing system where clients can pay by credit card from the cell phone and buyers get the invoice for the services provided or products purchased as easily as it was to acquire it, Do not forget to add security and safety measures for both buyers and sellers or products. Let there be a two way rating for both seller and buyer to maintain efficiency and high performance.

CONCLUSION

The shared economy is simply summarized as: what is mine is yours, in exchange for a small counter-benefit; it is based on transactions that are made with or without profit between individuals through platforms, which can be digital or not digital.
The shared economy considerably encourages entrepreneurship, giving rise to new business models and innovative solutions that allow the distribution of wealth to a greater extent and also to ensure that everyone starts their small business and enters a considerable amount doing what they are most passionate about.

A short video (6:57) that explains what sharing economy is all about. And what are the benefits we can all gain.

 
 
 
 

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