Airbnb, Spotify and Uber lead the charge as the sharing economy continues to disrupt markets and sectors across the world...
Despite recent research from Virgin uncovering that only five percent of the UK population fully understand what the sharing economy is, a new report from PwC has revealed that the five key sharing economy sectors could generate £9 billion of UK revenues by 2025. While revenues across the globe could rise from $15 billion to $335 billion in the same time frame, as the sharing economy continues its stunning rise.
These key sectors - peer-to-peer finance, online staffing, peer-to-peer accommodation, car sharing and music/video streaming – are continuing to grow at a rapid rate, with economist Robert Vaughn believing the economy is showing no signs of slowing down.
"The sharing economy is a result of long-term megatrends colliding together, driven mainly by advances in technology, resource scarcity and social change. Over the next decade, our analysis highlights the potential for significant value to be created by five of its most prominent sectors, playing an ever more pronounced role in the commercial landscape. $15 billion of global revenues in this five sharing sectors today could rise to well over $300 billion by 2025. But achieving this potential will require important regulatory and competitive challenges to be overcome,” explains Vaughn.
"The UK is positioning itself to take advantage of this growth, developing progressive policies towards the sector. For example, the government recently brought insurance leaders together to work out how they can better serve sharing economy business models. And officials have just announced plans to remove laws controlling short-term rentals, opening up the door for short-term P2P accommodation sites to expand."
While it’s apparent that the vast majority of people are still getting to grips with the technical terms used by many embedded in these five sectors, John Hawksworth – chief economist at PwC – sees our natural instincts being reflected in the key characteristics of the sharing economy.
"In some ways, the sharing economy is a throwback to the pre-industrial age, when village communities had to share resources to survive. They built up trust through repeated interactions with people they had known all their lives. Modern digital communications allow sharing to happen across a global village of consumers and providers, with trust established through electronic peer reviews,” notes Hawksworth.
"Looking beyond the sectors where sharing is already well established, there are some very exciting growth opportunities that are yet to be fully realised: companies need to do an audit of which of their tangible and intangible assets could profitably be shared in future. We think this model could spread to other sectors such as energy, telecoms and retailing.”
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