The sharing economy is an economic model defined as a peer to peer (P2P) based activity of acquiring, providing, or sharing access to goods and services that is often facilitated by a community-based on-line platform.
- The sharing economy involves short-term peer-to-peer transactions to share use of idle assets and services or to facilitate collaboration.
- The sharing economy often involves some type of online platform that connects buyers and seller.
- The sharing economy is rapidly growing and evolving but faces significant challenges in the form of regulatory uncertainty and concerns about abuses.
Communities of people have shared the use of assets for thousands of years, but the advent of the Internet—and its use of big data —has made it easier for asset owners and those seeking to use those assets to find each other. This sort of dynamic can also be referred to as the shareconomy, collaborative consumption, collaborative economy, or peer economy.
Sharing economies allow individuals and groups to make money from underused assets. In a sharing economy, idle assets such as parked cars and spare bedrooms can be rented out when not in use. In this way, physical assets are shared as services.