There exist a lot of misconceptions about the sharing economy. It is considered a millennial pastime, who will soon tire out. And apparently, it is only relevant in taxi and hospitality segments. However, that is not true as proven by several real impactful examples. Silicon Valley in California is where this sharing economy had its roots in, but in rural India, it has found acceptance through Mahindra & Mahindra’s mechanical farm equipment. The company created a platform called Trringo by which farmers could rent such farm equipment which was otherwise expensive. The sharing economy helps in expanding markets to areas which otherwise could not have afforded a service. It also stimulates people to pay more as the payoff for paying an incremental figure will provide substantial benefits. The users enjoy the variety and improved quality along with the price factor. Those not using are often held back by trust or convenience issues. Business intelligence received from a survey reveals that 57 percent of US, 67% of Indians and 40% of Germans will switch to the sharing economy if convenient offers are received. Sharing is not just relevant for startups but companies at all stages of their growth. Uber and Airbnb have so far been the biggest success stories of this trend.

Source:https://www.bcg.com/publications/2017/strategy-accelerating-growth-consumer-products-hopping-aboard-sharing-economy.aspx?linkId=51426822

Uploaded Date:19 June 2018