Editorial The sharing economy IT IS known as the ‘sharing’ or peer-to-peer economy, a concept in which people create value out of shared or open resources.Ideas like peer-to-peer sharing and open resources were in the past limited to teenagers and Generation Y-ers, who believed in the dictum, ‘What’s Mine is Yours.’ But today the sharing economy is growing at a phenomenal pace and established businesses are worried about the disruptive nature of this new beast. Business lobbies, trade unions and local authorities in cities across the world are joining hands in a bid to bludgeon the newbies who pose a serious threat to existing businesses. In London, thousands of black-cab drivers blocked traffic for hours last month, protesting against the growing popularity of Uber, a taxi-sharing service that has become immensely popular in over 200 cities in nearly 50 countries. Taxi-drivers elsewhere in Europe and North America have also launched a campaign against ride-sharing services such as Uber, Lyft and Sidecar, which are not only making a lot of money, but are raising billions of dollars in new equities, as investors seek value in their business models. In the hospitality sector, hotel chains and travel agents are up in arms against new age service providers including Airbnb and HouseTrip, who are snatching away business from established properties. Noel Josephides, chairman, Association of British Travel Agents, recently lambasted the peer-to-peer sector, epitomised by new players such as Airbnb. He warned that the industry was confronted by a second online revolution. “This is the rise of what we call the sharing economy another name for the growth of the black economy, but presented in a very clever and sympathetic way,” he said. Companies like Uber and Airbnb are increasingly targeting the youth, offering them inexpensive services such as taxis or hotel rooms at a fraction of the cost charged by established players. Uber, a San Francisco start-up (now valued at over $18 billion) founded in 2009 by a college dropout, offers an app that can be downloaded on your smartphone, which allows you to hail registered cars (not necessarily taxis) that are located nearby. Its growing popularity reflects the convenience and ease of doing business; Jo Bertram, who heads the UK unit of Uber, claims that Londoners “are voting with their fingers by downloading apps like Uber. We are opening up choice and flexibility, while also ensuring the highest safety standards.” Indeed, these are just the early days of a long and bitter battle that will ensue between entrenched businesses and spiffy newcomers making full use of new technology to woo young consumers. While the first round involving peer-to-peer music sharing firm Napster was won by traditional business, it will now not be so easy to snuff out the likes of Uber and Airbnb. (Courtesy Khaleej Times)
Posted on: Mon, 13 Oct 2014 05:46:47 +0000
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