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How Sharing and Renting is Creating a New Global Economy

How Sharing and Renting is Creating a New Global Economy
How Sharing and Renting is Creating a New Global Economy
Did you read today's Economic times paper, the came across  to the article about sharing economy in india? It's gaining momentum with the help of available technology and sharing mindset.

I try to follow the same traits, because I too belong to Gen Y.

I use Uber to commute to office mostly shared-ride via uberPOOL.

I use zoomcar for long drive.

I live in rented accommodation.

Always looks for sharing rather owning it.

No plan to buy car in near future.

No plan to buy home in near future.

Start with Uber:

Sign up and get 3 free rides to try out 

Now Generation Traits
Now Generation Traits

What is sharing economy?

We are actually uniquely geared as a species to share. It brings great benefits, after all. You have something I need and I have something you need; we can swap or at least get it at a reduced price. We don’t necessarily have to pay because we can share. We can share creative ideas, production methods, delivery of goods, distribution networks, or goods and services that are in high demand. There are two keys to this being successful on a large scale.

First of all, you need the technology that enables people to connect (in this case online and smart devices) and you need a platform where people can go and share and connect without prohibitive transactional costs. Put these together and you have an economic model that anyone can engage with.

Look at the following examples:
  • Earlier, customers preferred buying from big brands but are now considering pre-owned and refurbished options.
  • Earlier, people owned brand-new cars but are now gradually looking at alternative options of sharing or renting a car only when required.
  • The holiday industry has been revolutionised by the influx of home-stays and platforms like Airbnb that enable this behaviour.
  • The sources to borrow money apart from just a financial institution are on the rise.
The Right Now Generation 
Bali is a millennial, or Generation Y — those born between 1981 and 2000 — who swears by traits such as following one’s passion, living to explore, short attention spans, unconventional thinking and being driven.

With over 64% of India’s population projected to be between 20 and 35 years by 2021, millennials are set to shape the economy of the country in terms of what, how and when they spend. Psychologists call them the "right now" generation.

Define Generation
Define Generation
Driving Factors for Sharing Economy

Millennials are gradually becoming less and less materialistic. There is no taboo associated when a person opts for these new-age options.
Inflation of prices and recession of economy is also letting people look at alternative options like buying pre-owned goods and/or rented goods. The rate of inflation is at its peak and there is a constant slump in the market, these trends are set to propel the sharing economy further.
Improved technologies like smartphones, Internet penetration, lean logistics, simple payment systems etc., have also eased peer-to-peer sharing.

Sharing Economy in India
Sharing Economy in India
How it will work in India?

Whether you call it the sharing economy or collaborative consumption, this is the biggest change in the way we buy and sell and delivers a range of economic and social benefits that have a far reach. While it is yet to fully catch on in India, the future for the sharing economy does look promising. Consumers are happier to try different things and the technology is certainly there – smartphone usage has exploded in India over the last few years, across all demographics.

This in turn is helping to create marketplaces and drive suppliers to engage with the sharing economy. Let’s take a quick look at the three most popular sectors:

Transportation: Finding someone online who can drive you to a destination. It’s been made popular by apps such as Uber who have put customers and suppliers in contact with each other, disrupting the normal transport provision of taxis, buses and trains.

Hospitality: You don’t have to book into a hotel but can rent a room or house off a private individual just by going onto the right app.

Food and Beverage: Again, platforms put customers and suppliers in contact with each other at a much lower price.

These on demand technologies are not only changing the way we think but is are producing a number of other benefits. It is easier to find good deals, one of the major governing factors in take up. Costs are brought down so that we get products and services cheaper.

How much will it cost
How much will it cost

Some read worthy links from the web about sharing economy

The rise of sharing economy and why it will work in India
The Sharing Economy Revolution: India Is Ready To Take Next Big Leap
How Sharing and Renting is Creating a New Economy in the West
India’s sharing economy paves way for budding entrepreneurs
How is India doing in terms of Sharing Economy?
The rise of the rent economy
Selling to Gen Y: The biggest challenge for marketers is to delve deeper to connect with them 
How Gen Y's spending patterns differ from previous generations 

Most important links to check next ...
Still looking for ideas: 7 ways to save money while shopping online 

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