The History of the Sharing Economy

Sharing economy companies and services have provided new ways for people to purchase, use, and reuse everyday products. While the term was initially used to define peer to peer sharing services, these days the term is used to broadly refer to online marketplaces that allow users to bid on and offer any kind of good or service. Along with adding competition and more accessible marketplaces, sharing economy services have helped foster more integrated communities that share products and resources with each other. The sharing economy has redefined the way we think about services, belongings, and property, creating a new economic model which focuses on sharing rather than ownership. 

The First Online Sharing Economy

Launched in 1995, eBay was one of the first enablers of the sharing economy since it provided a global online marketplace where anyone could purchase or sell just about any kind of item. While garage sales had been the typical way to purchase used items, they’re infrequent and can only offer the garage seller’s belongings. eBay opened people up to a 24/7 platform which had a huge selection of stock from both retailers and normal people trying to sell products at competitive prices. While eBay might not be seen in the same light as more modern sharing economy companies like Airbnb and Uber, it was the first step towards connecting individual buyers and sellers without a retailer in the middle of the operation. 

The Home Sharing Economy

Home sharing has become one of the sharing economy’s biggest niches, challenging the monopoly on accommodation that hotels have held for decades. In 2008, Airbnb came onto the scene with the idea of allowing people to share space in their homes in order to find lodging in cities with booked up hotels. Home sharing and short-term rentals quickly grew to become a booming business, largely due to the immense variety of locations and price options available when choosing between listings.  

Since Airbnb’s changed the way we think about online accommodation and sharing living spaces, an entire sector of home sharing companies have flourished. As real estate continues to become a more precious resource, even hotel companies have seen the value in allowing users to list their private properties for anyone to book, with Marriott International’s Homes and Villas and Four Seasons’ Residence additions looking to compete with home sharing platforms.

The Creation of the Gig Economy

Not only has the sharing economy changed the way we buy and use things, but it has also changed the way people work. In the early days of the sharing economy, eBay enabled entrepreneurial salesmen to build businesses by buying and reselling products at a premium, enabling them to reach a global audience of shoppers from their home. Sharing economy platforms have made it easier for anyone to find a larger variety of potential jobs to work that are more flexible part time and full time opportunities compared to traditional jobs.

Recent sharing economy companies like Uber and Lyft have empowered anyone with a car to be able to work as a ride-sharing or delivery driver, with the convenience of being able to work whatever hours suit them best. Airbnb hosting has become a huge business for those with extra space in their home, and pet-care services like Rover connect those in need of dog walkers and pet sitters with animal-friendly sitters looking for some extra income. Taskrabbit acts as a labour-sharing marketplace, letting people post jobs and offer their services for anything from furniture assembly to home cleaning. These platforms have provided easy access to a whole new job market to anyone with an internet connection, making for more interconnected communities of individuals that are able to help and provide work for each other. 

The Potential Growth of Sharing Economy Companies

Airbnb and eBay reflect the potential explosive growth for sharing economy companies, as they’re able to harness users around the world in order to provide a competitive marketplace for goods and services. If the right niche is found, a sharing economy company can have incredibly low overhead costs while providing extremely competitively priced marketplaces that often have more variety compared to traditional retailers. Just like eBay didn’t have to make a product to sell on their website, in over a decade Airbnb hasn’t had to build a single home, and yet both websites process thousands of transactions every minute. 

Now, there are sharing economy marketplaces and platforms for just about any type of product or service you can think of. From housing and self-storage to dog walking and boat sharing, it’s often possible to find a sharing economy-based alternative solution for just about any kind of product or service you need. Sharing economy platforms have provided a competitive new way for products and services to be distributed directly from person to person, cutting out the costs of having a middleman and helping people reconnect with their surrounding community. 

About Keycafe

Keycafe is a technology company modernizing business key management with a cloud-connected SmartBox and accompanying key management software.

In addition to a global Public Network of over 1000 locations for Airbnb users, Keycafe’s Enterprise Solution enables businesses in any industry to manage key access for staff and customers.