This Week's Obsession - The Sharing Economy
Before it had a name and became a cutting-edge concept, the sharing economy had outposts in the American economy. Carpooling, for instance, has long been a way of sharing both the cost of commuting and leveraging an expensive asset — the private automobile (which sits idle more than 90% of the time).
Today, thanks to the likes of Airbnb, Zipcar, and Uber, you can stay in a luxurious villa in St Tropez, hire a car by the hour, or have a personal driver on hand any time of the day – what’s not to love about that? The rise of the economic model ‘sharing economy’ opens up these opportunities to everybody and is increasingly becoming a bigger part of our lives. Most people believe that sharing economy models are better for the economy, but are they?
The rise of the economic model ‘sharing economy’ opens up these opportunities to everybody and is increasingly becoming a bigger part of our lives. Rather than owning an asset, behaviour has shifted towards more convenient rental agreements, available on-demand and with less commitment. The sharing or ‘peer-to-peer’ economy enables people to rent assets owned by another individual.
It’s become common place in the transportation and hospitality sectors and the outlook of sharing economy is expected to reach $20bn globally by 2020 (Juniper Research), but what industry is next and where will it end?
Imagine the horror of being spotted on Instagram twice in the same outfit!
Now, thanks to the sharing economy you don’t have to worry about it. Companies like Rent the Runway, Hurr Collective, MWHQ, Rotaro, Chic by Choice and Girl Meets Dress are the answer to your worries. They offer rental options that enable anybody to wear the latest fashion items without spending a significant amount of money. Predominantly aimed at women, the idea is to make a wide range of high-end clothing accessible to everybody. No longer do your wardrobes need to be the graveyards of ‘never-to-be-worn-again’ items.
The ‘rent-a-dress’ model makes it possible to rent expensive designer dresses and accessories for a limited period at a fraction of the retail price (generally between 10%-20%). The rental price includes shipping costs, a return package with a pre-labelled barcode, care, and optional insurance. You can order your outfit online or in some cases stores. For example in London MWHQ has a partnership with Harrods and Hurr Collective with Selfridges. On top of that, a personalised customer service is provided through stylists who can help you find the perfect dress and accessory combination. If you want a regular service, another option is to pay a monthly fee or subscription for a specified number of designer pieces on rotation. They even insure against minor spillage and damage.
It’s not for everyone but the disruptive sharing economy cannot be overlooked.
RentMy have joined Sharing Economy UK, helping owners make money from the things they own by renting out their items that might otherwise sit idle. The platform also gives renters the chance to rent anything, from anyone, anywhere.
RentMy was originally conceived to revolutionise the rental market, making a social and environmental impact in the process.
TOM WEST, FOUNDER AND CEO OF RENTMY SAID:
“RentMy are excited to be networking with our colleagues in the sharing economy, who are collectively on a mission for a more sustainable democratised economy. As part of the CBI, Sharing Economy UK is a hub for businesses that bring social and economic benefits not found in traditional business models. Our communities are founded by innovative people, utilising skills for a more personal local feel or using existing resources reducing waste and CO2 emissions. We are proud to be a part of this positive change.
The future’s bright, the future’s shared!”
In the PwC study, 81% of people familiar with the sharing economy agreed that “it is less expensive to share goods than to own them individually” and 57% agreed, “Access is the new ownership. ”
According to Nicolas Voisin, founder of TheAssets.co, which trades in business-related goods, “80% of the things in our homes are used less than once a month, and self-storage has increased by 1,000% over the past three decades.”
Tapping the environmental potential of sharing technology. One interesting speculation is that by monetising the untapped potential of under - utilised goods, the sharing economy may prompt consumers to purchase more expensive products that are more durable and possibly eco-friendly as well. Padden Guy Murphy, head of public policy and business development at car-sharing service Getaround, cites electric cars as an example. Sharing can be “a massive needle mover for adoption of electric cars,” he said, noting that a Tesla Model S, which might lease for $900 a month, becomes affordable for many more people when it also produces $2,000 to $3,000 in that same period through Getaround rentals.
Making better use of under - utilised products is probably the most obvious, if vaguely quantified, environmental benefit of the sharing economy. But companies large and small are putting peer-to-peer technology to use in other surprising ways that may well prove far greener in the long run.
”There is significant environmental benefit to increasing the use of existing goods and reducing the demand for new goods.” — Anders Fremstad, Colorado State University
Covett's shared ownership model was conceived based on the fact that the more a piece of jewellery costs, the less it tends to be worn - with the exception of engagement rings. This means that these are under-utilised expensive assets. By sharing these pieces that are only worn on occasion, you reduce the cost and waste significantly.
We believe our model is for savvy and conscious consumers. And according to Giana M. Eckhardt and Fleura Bardhi, researchers - “Consumers simply want to make savvy purchases, and access economy companies allow them to achieve this, by offering more convenience at lower price.”
Perhaps if executed with a sustainable bent, this can be the best of all worlds, better for consumers and the planet.