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Some of the most successful innovators in the sharing economy including Lyft, Uber, Airbnb, and TaskRabbit. These brilliant companies have disrupted the industries that they’re in, and they’ve grown at a substantial rate.

 

The goods and services that are available through the sharing economy are almost limitless. People’s imaginations are always creating and thinking of new ideas that lead to new companies being formed. The profits from the sharing economy has caught the attention of many people due to various legal, safety, and quality issues. Today we will take a look at some pros and cons of the sharing economy.

 

Pros

  • It lessens the number of unemployed Americans and offers a platform for sellers. Thousands of new jobs have been created from the sharing economy.
  • It empowers citizens and makes them more productive (also creates a closer community).
  • It opens new business ideas (Innovation!).
  • It is a form of recycle, reuse and repurpose (reuse old cars, houses, etc.).

 

Cons

  • It is unfair to people who earn through this system and takes away profit from businesses. For example, Airbnb takes away profits from the hotel industry.
  • It results to loss in government revenues (Some people get away with paying less taxes).
  • It can lead to fraud and scams. There’s also a lack of protection from fraud/scams so people need to be careful!
  • It is simply a new form of capitalism. At the end of the day, the people who benefit the most are the companies who act as the middlemen for services/goods.

 

Do the pros outweigh the cons? What do you think?

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