Abstract/Summary

Sharing is said to be fast becoming the new approach to consuming. For example, what is the rationale for purchasing an electric drill for a simple DIY job if it is for drilling only one hole if one could be shared within a community? What is the benefit of having a car or vehicle that spends much of its time in a garage when it could be utilised by others? Also, why not offer an allocated room for guests seeking temporary accommodation on a more regular basis? These are all questions that are pertinent to the sharing or peer-to-peer (P2P) economy. Within the last decade, online P2P platforms have been launched by creative and innovative start-ups that bring the different parties into contact (i.e. private owners and users) to undertake a transaction with each other. Unlike car rental companies or hotels/guest houses, such platforms offer products or services without the need for a central mediator, which makes the transaction a less expensive alternative. The following paper explores the concept of the sharing economy in terms of its emergence and how it is funded, how it has been defined and classified, existing and important trends, how it compares with traditional models, and what existing examples of sharing economy businesses look like. We also explore whether or not the sharing economy poses a threat or opportunity to existing businesses, the challenges that the sharing economy sector faces, along with implications for business and how the sharing economy could look in the future.