Startups like AirBNB, Uber and Lyft have become common household names. Just a few years ago most people had never heard of these business names. These businesses represent just a small portion of what is now known as the Sharing Economy.
So what exactly is the Sharing Economy?
Sharing Economy 101
The sharing economy is an economic model in which individuals are able to borrow or rent assets owned by someone else who is not connected directly with a traditional brick-and-mortar storefront. The sharing economy is particularly effective when the price of a needed asset is high and sits idly allowing the owner to put that asset to use while at the same time giving the buyer the option to use the asset at a reduced cost.
The sharing economy has created a way of monetizing a practice we are taught as children – to share. As adults, we can share our assets while getting the benefit of earning an income from what we already own with others who wish to use them at a lower cost than what they might have historically spent within a brick-and-mortar business.
Sharing our goods and services with complete strangers has boomed since 2009 with the launch of AirBNB.
The peer to peer rental market alone is worth $26 billion. It is projected, to see growth upwards of $335 billion by 2025 due to its overwhelming popularity.
What Does The Sharing Economy Mean For Me?
The sharing economy means you have the opportunity to make money on assets you have but aren’t fully using.
Do you have a guest room that isn’t always occupied? Rent it out through AirBNB. AirBNB reports that hosts in San Francisco who rent out their homes do so for an average of 58 nights a year making an additional $9,300.
Do you have a car you aren’t using this weekend? Rent it out to someone who needs it through Turo. People who rent out their cars make an average of $250 to upwards of $1,000 a month.
‘Faces’ of the Sharing Economy
You are probably familiar with a few of these top performers, but here are just a few of the sharing economy companies you can learn more about:
- DogVacay – dog owners can leave their dog with a host who will care for them with more comfortable accommodations than a traditional kennel stay.
- TaskRabbit – need dog food but the baby JUST went down for a nap? Hire a person through TaskRabbit to make the grocery store run for you. From delivery to handyman to office help – TaskRabbit is an easy way to make a little extra money.
- Spinlister – rent out your bike for the afternoon
Items you own have value and the sharing economy gives you an opportunity to make extra money with the items you already own.
What’s stopping you? Before paying full price check out the sharing economy and while you’re at it put some extra money in your pocket with what you already have just laying around.