Nowadays, everyone wants to own fewer amounts of things that we use every day. Things like transportation, housing, etc. are being shared between people using apps like Airbnb, Uber, etc. This kind of economy where resources are being shared among the consumers is called the sharing economy.
What is the Sharing Economy?
The fundamental statement that brought about our so-called sharing economy is that everyone wants to own fewer possessions and rather would like to use other’s items for trivial tasks. Regardless of whether as a result of natural concerns, monetary need, or just a longing for increasingly human association, sharing assets as a private company opportunity has become wildly successful the most recent couple of years. And keeping in mind that the open door for development in the vast scale sharing economy is as yet immense, there is likewise an ever increasing number of chances left accessible at the nearby private venture level.
Top Reasons Why People Don’t Trust in Sharing Economy Business
Privacy or Safety Concerns
Sharing which is mediated via the internet is a business which is growing rapidly nowadays. A large number of clients around the globe share individual properties and equipment with others ‒ a majority of the time, these people are complete strangers. Shared merchandise can add up to considerable money related doubts as well as privacy issues.
People share their houses, vacation properties as well as vehicles using apps like Airbnb and Uber. Many a time, people have privacy concerns regarding sharing their personal equipment with complete strangers. The lack of mediation and a middleman in most of the cases is why many people refrain from the sharing economy.
Little to No Guarantee
Similar to the previous point, due to the lack of a middleman in most cases, there is little to no guarantee of payment as well as of the condition of the properties after usage in the case of rented stay or vehicles. For the consumer, there is no guarantee that the property they are renting matches the description on the internet which is a big reason for people to not trust the sharing economy businesses. One solution which the owners of the sharing economy businesses have come up with is the system of ratings and reviews but even reviews can be meddled with by the owners by buying fake reviews.
Risk of Fraud and Scams
The term internet is synonymous with the word scam. When we think of frauds and scams, we think of the internet. By providing a virtual wall between the consumers and the providers, the sharing economy system has given rise to many scammers and fraudsters who use the online sharing economy platforms like OLX, Uber, and Airbnb to extort money out of customers who look for cheaper options for housing, transport or buying used items.
Lack of Customer Loyalty
In the case of a traditional business, the customers have a kind of loyalty towards the business owners. People have their go-to shops for buying certain items and renting vehicles from a certain travel agent. But in the sharing economy, the people are presented with a wide array of providers to choose from which results in the lack of customer loyalty towards a particular business or individual. This is a major reason why many individuals stick to the traditional methods of business rather than porting their businesses to the sharing ecosystem.
Booming Sharing Economy Business Ideas for the year 2019
Perhaps you have an excellent idea or thought that will make you the next big enterprise like Uber, Furlenco or Airbnb. Or then again perhaps you’ll make the sharing economy work for you on a little scale. Whatever you have as a top priority, here are a couple of guides to make you consider how to make the new sharing economy work for you:
Accessories and Attire
Companies like This for That have put money on the sharing economy by offering acquired or leased dress and frill at a small percentage of their original costs. What’s more, in light of the fact that a small amount of stock can produce income on various occasions, the profit margins of these kinds of enterprises are quite good.
Do you have an eye for design and a feeling of style not right now offered by other fashion renting enterprises? Possibly you’re prepared to be the next big sharing economy venture in the field of fashion!
In any case, regardless of whether you’re not set up to open a multi-million dollar startup in the fashion niche, you can simply benefit from the sharing economy of fashion in your local region. Assemble some most loved clothes and other apparel picks and hosts a sharing party for girls from a nearby college or school right before any function or formal dance at their schools. In case you’re in a school town, Greek life formals are another incredible chance to benefit from a shared economy mold. What’s more, since you’re removing shipping costs from the picture, you have the potential for far and away superior overall revenue than the bigger new businesses appreciate!
Home Improvement Equipment
Is it true that you are the go-to fellow or lady in your neighborhood for each grass, garden, and home-fixing gadgets under the sun? Why not transform those favors into a gainful business by promoting your accessible hardware past your neighborhood friends and families?
You may even choose to put resources into increasingly explicit and greater expense hardware that would be helpful to everyone around you. Furthermore, if a client doesn’t realize how to utilize an explicit instrument, consolidate your gear rental with a portable jack of all trades benefit for considerably more money stashed away!
Room Sharing companies like Airbnb or Oyo have made it less demanding than at any other time to benefit from your unused get-away property—or even your additional room. In the event that you live in a very attractive visitor goal, you can make a pretty penny leasing space in your home to voyagers, and make a couple of companions all the while!
Business team in the meeting– stock image