{"id":3803,"date":"2020-09-03T15:19:41","date_gmt":"2020-09-03T15:19:41","guid":{"rendered":"https:\/\/desis.osu.edu\/seniorthesis\/?p=3803"},"modified":"2020-09-03T15:19:43","modified_gmt":"2020-09-03T15:19:43","slug":"sharingeconomy-the-shift-to-access-versus-ownership","status":"publish","type":"post","link":"https:\/\/desis.osu.edu\/seniorthesis\/index.php\/2020\/09\/03\/sharingeconomy-the-shift-to-access-versus-ownership\/","title":{"rendered":"#SharingEconomy: The Shift To Access versus Ownership"},"content":{"rendered":"\n<p>\u00a0By Lumos Business &#8211; January 14, 2017<\/p>\n\n\n\n<p>The global sharing economy is taking flight. The exponential growth in the sector, globally, is being driven by the desire for access versus ownership.<\/p>\n\n\n\n<p>The global sharing economy is taking flight. The exponential growth in the sector, globally, is being driven by the desire for access versus ownership.<\/p>\n\n\n\n<p><strong>+<\/strong>&nbsp;<a href=\"http:\/\/www.pwc.com\/us\/en\/industry\/entertainment-media\/publications\/consumer-intelligence-series\/assets\/pwc-cis-sharing-economy.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">PWC \u2013 Consumer Intelligence<\/a><\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" src=\"http:\/\/lumosbusiness.com\/wp-content\/uploads\/2017\/01\/Access-Ownership.jpg\" alt=\"Access-Ownership\" class=\"wp-image-1511\" \/><\/figure><\/div>\n\n\n\n<p>According to&nbsp;<a href=\"http:\/\/www.pwc.co.uk\/issues\/megatrends\/collisions\/sharingeconomy\/the-sharing-economy-sizing-the-revenue-opportunity.html\" target=\"_blank\" rel=\"noreferrer noopener\">PWC\u2019s \u2018Sizing the Revenue Opportunity\u2019&nbsp;<\/a>report in 2014, the global sharing economy (Sh) accounted for approximately 6.25%, or $15bn, &nbsp;of total sector revenue compared to the&nbsp;traditional rental economy (Tr) in&nbsp;an array of sectors, comparing car sharing (Sh) versus car rentals (Tr) for example.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" src=\"http:\/\/lumosbusiness.com\/wp-content\/uploads\/2017\/01\/SharingBreakdown-768x1306.jpg\" alt=\"SharingBreakdown\" class=\"wp-image-1506\" \/><\/figure><\/div>\n\n\n\n<p>+&nbsp;<a href=\"http:\/\/www.pwc.co.uk\/issues\/megatrends\/collisions\/sharingeconomy\/the-sharing-economy-sizing-the-revenue-opportunity.html\" target=\"_blank\" rel=\"noreferrer noopener\">PWC: Sizing the Revenue Opportunity<\/a><\/p>\n\n\n\n<p>By 2025, total sector revenue from the sharing economy is expected to reach 50%, or $335bn,&nbsp;when compared to traditional rental economy. This exponential increase in revenue will be driven by several factors, including:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>the rise of the millennial generation<\/li><li>the platformization of the global economy<\/li><li>increasing asset prices and decreasing wages\/job security<\/li><li>new trust mechanisms that will facilitate P2P (peer to peer) commerce<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Sharing Economy Sectors<\/h2>\n\n\n\n<p>On a sector-by-sector basis, PWC&nbsp;collected platform transaction and revenue data for the following major sectors in the UK, a hub of sharing economy activity, in 2016:<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" src=\"http:\/\/lumosbusiness.com\/wp-content\/uploads\/2017\/01\/Sharing-economy-assets-02.jpg\" alt=\"Sharing economy assets-02\" class=\"wp-image-1508\" \/><\/figure><\/div>\n\n\n\n<p><a href=\"http:\/\/www.pwc.co.uk\/issues\/megatrends\/collisions\/sharingeconomy\/outlook-for-the-sharing-economy-in-the-uk-2016.html\" target=\"_blank\" rel=\"noreferrer noopener\">+ Outlook for the Sharing Economy<\/a><\/p>\n\n\n\n<p>On a sector-by-sector basis, PWC projects the following revenues by 2025 in the UK:<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" src=\"http:\/\/lumosbusiness.com\/wp-content\/uploads\/2017\/01\/Sharing-economy-assets-03.jpg\" alt=\"Sharing economy assets-03\" class=\"wp-image-1509\" \/><\/figure><\/div>\n\n\n\n<p><a href=\"http:\/\/www.pwc.co.uk\/issues\/megatrends\/collisions\/sharingeconomy\/outlook-for-the-sharing-economy-in-the-uk-2016.html\" target=\"_blank\" rel=\"noreferrer noopener\">+ Outlook for the Sharing Economy<\/a><\/p>\n\n\n\n<p>We can see that the majority of platform revenues in the UK currently comes from P2P Transportation (38%), P2P Accommodation (27%), and Collaborative Finance (16%) from a total revenue pie of \u00a31bn.<\/p>\n\n\n\n<p>Going forward to 2025, we can see that the share of the pie is projected to increase to \u00a318bn in total revenues, with P2P transportation, P2P accommodation, and on-demand household services having the greatest slice of the pie.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Trust + Experience Quality Drives the Sharing Economy<\/h2>\n\n\n\n<p>According to&nbsp;<a href=\"http:\/\/www.pwc.com\/us\/en\/industry\/entertainment-media\/publications\/consumer-intelligence-series\/assets\/pwc-cis-sharing-economy.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">PWC\u2019s Consumer Intelligence<\/a>&nbsp;series on the sharing economy, the two most important elements are:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>trust<\/li><li>quality of experience<\/li><\/ul>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" src=\"http:\/\/lumosbusiness.com\/wp-content\/uploads\/2017\/01\/SharingEcon-I.png\" alt=\"SharingEcon I\" class=\"wp-image-1513\" \/><\/figure><\/div>\n\n\n\n<p>Therefore, it is imperative that enterprises focus on maintaining quality control over the experience, building trust with customers, and designing mechanisms in the product for people to share their experiences with others.<\/p>\n\n\n\n<p>French-based&nbsp;<a href=\"https:\/\/www.blablacar.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">BlaBlaCar<\/a>&nbsp;is considered to be the poster child of these attributes in the global sharing economy and has their own metrics of trust:<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" src=\"http:\/\/lumosbusiness.com\/wp-content\/uploads\/2017\/01\/BlaBlaCar-Trust-768x516.png\" alt=\"BlaBlaCar - Trust\" class=\"wp-image-1516\" \/><\/figure><\/div>\n\n\n\n<p>They have designed the \u2018D.R.E.A.M.S.\u2019 framework for creating trust on the platform:<\/p>\n\n\n\n<p>+&nbsp;<a href=\"https:\/\/www.blablacar.com\/trust\" target=\"_blank\" rel=\"noreferrer noopener\">Entering the Trust Age<\/a><\/p>\n\n\n\n<p>This data demonstrates that is is possible to create digital mechanisms of trust and facilitate commerce between \u2018strangers\u2019 in all sectors of the sharing economy.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Market Bets on Millennials<\/h2>\n\n\n\n<p>Airbnb has made their big bet behind Millennials as part of their<a href=\"https:\/\/www.youtube.com\/watch?v=efNyRmTLbjQ\" target=\"_blank\" rel=\"noreferrer noopener\">&nbsp;recent launch&nbsp;<\/a>of \u2018Experiences,\u2019 an ambitious endeavour that will facilitate the booking of the whole trip experience, from end to end, on their mobile app:<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" src=\"http:\/\/lumosbusiness.com\/wp-content\/uploads\/2017\/01\/global-millennials.jpeg\" alt=\"global millennials\" class=\"wp-image-1515\" \/><\/figure><\/div>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p><strong>\u201880% of young people want to spend their money on experiences not things\u2019&nbsp;<\/strong><a href=\"https:\/\/twitter.com\/jowyang\/status\/799705519904563200\" target=\"_blank\" rel=\"noreferrer noopener\">@jowyang&nbsp;<\/a>from Airbnb Open 2016<\/p><\/blockquote>\n\n\n\n<p><a href=\"https:\/\/twitter.com\/shenaliD\/status\/760409154628440064\" target=\"_blank\" rel=\"noreferrer noopener\">Airbnb expects<\/a>&nbsp;millennials to be 75% of travelers by 2020, as they are now the largest generation in the world. Globally, we can see that millennials are the most likely to participate in the sharing economy:<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" src=\"http:\/\/lumosbusiness.com\/wp-content\/uploads\/2016\/10\/nielsen-global-share-community-report-may-2014-9-638.jpg\" alt=\"nielsen-global-share-community-report-may-2014-9-638\" class=\"wp-image-961\" \/><\/figure><\/div>\n\n\n\n<p><strong>+<\/strong>&nbsp;N<a href=\"http:\/\/www.nielsen.com\/ca\/en\/press-room\/2014\/global-consumers-embrace-the-share-economy.html\" target=\"_blank\" rel=\"noreferrer noopener\">ielsen: Sharing Economy<\/a><\/p>\n\n\n\n<p>However, since there are two sides to any platform, it is important to be inclusive in both design and execution for all generations. &nbsp;Sectors such as collaborative finance, P2P accommodation and on-demand services can tap into different knowledge, skills and asset pools from the older generations and help members of the younger generation gain&nbsp;access to wisdom, mentoring, capital and new experiences.<\/p>\n\n\n\n<p>The global sharing economy is set to explode over the next decade, driven by the desire for access to enriching experiences and \u00a0entirely new\u00a0models of transport, commerce and living.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<p>Analysis &#8211; <em>This article will be very informative to my research as it highlights data driven forecasting for economic shifts toward a shared economy model going into future decades. It also provides a close look at the demographic breakdown with regards to adoption of a shared economy mindset, while describing what factors contribute to the shift. A key point of in<\/em>terest <em>outlined is the direction towards experience-driven spending, versus ownership-motivated consumer behavior. These insights will prove valuable in terms of understanding the business and economic factors at play in the evolving consumer mindset<\/em>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>\u00a0By Lumos Business &#8211; January 14, 2017 The global sharing economy is taking flight. The exponential growth in the sector, globally, is being driven by the desire for access versus ownership. The global sharing economy is taking flight. The exponential growth in the sector, globally, is being driven by the desire for access versus ownership. [&hellip;]<\/p>\n","protected":false},"author":29,"featured_media":3805,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[19],"tags":[],"class_list":{"0":"post-3803","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business"},"_links":{"self":[{"href":"https:\/\/desis.osu.edu\/seniorthesis\/index.php\/wp-json\/wp\/v2\/posts\/3803","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/desis.osu.edu\/seniorthesis\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/desis.osu.edu\/seniorthesis\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/desis.osu.edu\/seniorthesis\/index.php\/wp-json\/wp\/v2\/users\/29"}],"replies":[{"embeddable":true,"href":"https:\/\/desis.osu.edu\/seniorthesis\/index.php\/wp-json\/wp\/v2\/comments?post=3803"}],"version-history":[{"count":1,"href":"https:\/\/desis.osu.edu\/seniorthesis\/index.php\/wp-json\/wp\/v2\/posts\/3803\/revisions"}],"predecessor-version":[{"id":3806,"href":"https:\/\/desis.osu.edu\/seniorthesis\/index.php\/wp-json\/wp\/v2\/posts\/3803\/revisions\/3806"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/desis.osu.edu\/seniorthesis\/index.php\/wp-json\/wp\/v2\/media\/3805"}],"wp:attachment":[{"href":"https:\/\/desis.osu.edu\/seniorthesis\/index.php\/wp-json\/wp\/v2\/media?parent=3803"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/desis.osu.edu\/seniorthesis\/index.php\/wp-json\/wp\/v2\/categories?post=3803"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/desis.osu.edu\/seniorthesis\/index.php\/wp-json\/wp\/v2\/tags?post=3803"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}