Page 20 - Economy_Sustainable Global Economy

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But we have to speak too about which are some of the cons of sharing economy:

• Safety concerns: Most sharing economy platforms are based on trust, as well as ratings by guests and
hosts. But sometimes it happens that one uses a car, or rents and Airbnb and it is completely different than
one imagines. After all, we have all heard tales of guests and hosts from hell.

• Lack of regulations: Another downside is that in many cases there is a lack of regulation to oversee the
products and services exchanged during these transactions. For example, hotels are inspected to assure
quality, whereas Airbnb apartments are not. The digitally-driven peer-to-peer nature of the sharing
economy model doesn’t align well with current laws and regulations, and sharing economy services don’t
have to comply with certain regulations, which on the other hand, helps keep the provided services more
affordable.

• Uncertain future: The sharing economy definitely has its lovers and haters. Many are not ready to switch
to that model, where others are already using more than four platforms in their daily lives. The business
model is having many growing pains, and many “standard” employees are trying to stop the growth of it.
We all remember that 9-day national anti-Uber and Cabify taxi strike, that more or less completely
paralysed Spain, and got quite violent at times.

• Unstable income & no benefits: While sharing economies offer much flexibility in working hours,
travelling, and freedom, jobs can be more unstable and may not provide living wages. Workers have to pay
for business costs (upkeep, insurances etc.) which take a large chunk out of their income.

The bottom line is consumers and businesses continue to evolve, and the sharing economy will evolve right
with them. If one is “simply looking to earn extra money” to pay down debt or save for a large purchase,
it can be a great way to make some extra cash. If consumers look at it as a sole source of income it can be
much trickier. As a help for reusing resources and reducing waste, the sharing economy is one of the most
important models currently. Whichever way one see this expanding market, it is worth trying and exploring
if one finds offers interesting enough to stick with.

3.3 Types of collaborative consumption

Collaborative consumption refers to resource circulation systems, which allow a consumer two-sided role,
in which consumers may act as both providers of resources or obtainers of resources (Ertz, Myriam; Durif,
Fabien; Arcand, Manon (2016). “Collaborative consumption: Conceptual snapshot at a buzzword”. Journal
of Entrepreneurship Education. 19 (9): 1–23.)

Originally, in 2010, Botsman and Rogers identified three resource circulation systems within collaborative
consumption:

• Product-service systems. Refer to commercial peer-to-peer mutualization systems (CPMS), allowing
consumers to engage in monetized exchanges through Social peer-to-peer processes for temporary access
to goods. For example, BMW’s “DriveNow”, established in 2011, is a car rental service that offers an
alternative to owning a car. Users can access a car when and where they need one and pay for their usage
by the minute. A variety of traditional companies start to offer sharing services.