We all know, How the sharing business economy is got a drastic change with the on-demand ear in the past few months with the power of mobility. On behalf of this we with a proven analogy we would like to share a brief about Sharing Business economy model and On-Demand Business economy model in this blog.
Are you aware of Sharing Business Economy?
Sharing economy is an economic model based on sharing underused assets or services for free or for rental basis through the available directly from the individual or an organization. In other words, Sharing economy is defined as a preference of the individual to rent or borrow the goods rather than to buy and own them. It is also known as collaborative consumption or peer-to-peer based sharing.
“Here is an example, you may need to travel somewhere comfortably and luxuriously where you are affordable to book a Premium CAR service in fact not going to buy a car for a single ride.”
How do the Sharing Economy work?
From our childhood, we have learned about sharing. It breeds trust, generosity and compassion among neighbours, cities and citizens. Even now in this internet era, sharing has landed an economic revolution.
Generally sharing economy is built on the concept of collaborative consumption. As per the traditional economic model, individuals need to buy goods. Let us consider the example, if anybody wants to drive to the store or airport, he or she needs to buy the car. All this come under personal consumption.
Only a few individuals will own the goods, but other people can pay to borrow them, it was nothing but sharing. For example, if you owned a car, that has value to both you and the person who wants to borrow If your car sits idle and you waste its value. Why can’t you earn extra money by sharing the car?
Sharing economy started in 2009 with the launching of the apartment-sharing website(Airbnb). There is a lot of explosion of online companies that enables the strangers to pay each other for a short period of time for the goods or services like home, cars, office space and many more. Sharing economy has attracted many people which increased the capital venture to billions of dollars.
Evolution of Sharing Economy
Sharing economy didn’t look out of thin air. Its technological and sociological foundation has been laid over the past 25 years. On sharing economy websites, trust is built by Facebook profile and the user is given rating and reviews on the popular sharing economy websites. In this, that trust is reinforced by face-to-face meetings. For example, let us consider the car rent website. In this, the keys will be handover to the renters and the renter should return the car in good condition. Of course, trust is the way to take you to so far. By this sharing companies, you can add an extra layer of protection to these sharing economy exchange by collecting and paying the money to the services
Here are the top sharing economy, categorised by sector that plays a major role in the marketplace.
- Home and vacation rental
- Tools and household items
- Pet sitting
- Food and many more.
All the above-mentioned categories majorly use sharing economy for their services to get top in the marketplace.
Pros of Sharing Economy
There are a lot of benefits in sharing economy:
- Reduce the negative environmental impacts by decreasing the production of goods needed.
- Reduces the industrial pollution
- Community strengthening
- Low cost of borrowing and recycling products.
- access to goods to people who can’t afford to buy
- Increase independence, flexibility, self-reliance by decentralization
- Participatory democracy will increase
- Sustainable consumption accelerated and production patterns in cities around the globe.
- Increase the quality of service by rating systems
- It lessens the number of unemployed Americans and offers a platform for sellers.
- It is a form of recycling, reuse and repurposes.
- It empowers citizens and makes them more productive.
- It also opens new business ideas.
Cons of Sharing Economy
- It is unfair to people who earn through this system and takes away profit from businesses.
- It results in the loss of government revenues.
- It can lead to fraud and scams.
- It is simply a new form of capitalism.
The main motto of Sharing Economy is not to buy a service or goods, but to own it. It’s all about sharing the goods and services with other people around you.
Let’s have look on statistics of Sharing and On-Demand Economics
Now let us look at What is On-Demand Economy?
The On-Demand Economy is defined as the economic activity generated by digital marketplaces that accomplish the consumer demand by immediate access to and provides a handy way to the provisioning of goods and services for those who are in the market for them. This is sometimes also known as “access economy”. Presently there are thousands of companies are making the use of On-demand economy. In other words, a platform that directly matches the customer’s needs with providers to immediately deliver goods and services.
With the change in behaviour like fast, simple, and efficient experiences of the consumer the on-demand economy is growing at an unparalleled pace. Consumers have given top priority to convenience, speed and simplicity in order to meet their needs. The on-demand and freelance economics will go hand in hand.
How does the On-Demand Economy works?
The On-Demand economy works by taking the services like food delivery, hairstyling and makeup applications and using technology in order to connect suppliers and consumers. This can be done through apps or websites by signing with their respective accounts to use the services. By entering into the app the customer can input their parameters and can send the request to connect with the service provider.
The service provider will be alerted by the app for the service request and heads out to perform the task for the customer. Once the task was completed, the payment will be done through the technology company. Using this there’s no need to share the personal information between the parties as the application acts as the mediator and safeguards the personal information. In this, both parties are promoted to provide feedback and rating for one another, in order to improve the service quality and also to improve the system.
Evolution of On-Demand Economy
Through on-demand economy, there is a drastic transformation of all the aspects of the marketplace. The on-demand economy is the way in which individuals can manage their daily activities and can interact with the market, but we are just experiencing the beginning of the on-demand economy, by the new orders. We are now at the beginning to observe how these digital marketplaces have the capacity to increase the potential service providers and sellers by using the technology to change how participants will engage in a specific transaction.
Here is the list of On-Demand Economy
- Food Delivery
- Health Care
- Real Estate
Pros of On-Demand Economy
There are a lot of benefits by using On-Demand economy
- It will fulfil the goods and services, and the ease and convenience of providing the skilled service provider to meet the customer needs.
- It will the customer to satisfy the needs with cost-effective, scalable and efficient way.
- On-Demand will offer services to get profits, without the overhead cost that is associated with traditional models.
- Flexible scheduling
- Ability to work for multiple companies
- Hourly pay can be high for more experienced workers
- Freedom from the constraints
Cons of On-Demand Economy
- Income is unreliable and unpredictable
- no reimbursement
- Schedule dictated by peak demand on the app
- Difficulty understanding tax obligations
The major idea behind the On-demand economy is to provide the services in a handy way to the customers It’s all about providing the services as per the user requirement.
Krify being an ISO certified company with the expertized team in Mobile App Development Company in INDIA and UK had done many projects on On-Demand apps like Biryani, Instahandz, Craftapp and many more. Just have a look at Portfolio. Do have any idea of On-Demand Business app of yours? Contact our team will guide you with the best app you have ever experienced.