Airbnb (home/room sharing) is now worth more than Hyatt and Hilton Hotels combined. Uber (car sharing) provided 2 million rides a day and continues its global expansion. Lending Club (peer-to-peer crowdfunding) channelled USD2billion in the past quarter.
The world’s largest media company produces none of its own content (you know who).
The apps you buy are written by your own neighbours.
What it Means for the Sharing Economy
By and large, the infographic and statistics by PwC above state clearly that the Sharing Economy is here, and growing rapidly globally. It was mainly a Western phenomenon in 2014 and is now very much global.
According to a Nielsen survey, 28% of global respondents were willing to share or rent their electronic devices for a fee (respondents in Asia-Pacific were more willing to do so at 39%). Similarly, other items global respondents were willing to rent include power tools (23%), bicycles (22%), clothing (22%), household items (22%), sports equipment (22%), cars (21%), outdoor camping gear (18%), furniture (17%), homes (15%) motorcycles (13%) and pets (7%).
Presently, P2P Crowdfunding is the fastest-growing sector of the Sharing Economy. This year, many anticipate China’s P2P financing market to surpass that of the US. Total P2P financing globally is expected to reach close to USD100billion this year, more than half of that from the US and China. (See also: Crowdfunding: A New Way to Grow Your Wealth)
Definition: An online ecosystem of marketplaces (digital platforms and apps) based on the sharing of resources.
All things considered, I believe that the Sharing Economy brings immense benefits to society.
Here are 3 I’d like to highlight:
A shift in trust to Community:
We are starting to trust each other again, most noticeably in recommendations and reviews of products and services. Presently, many marketplaces are regulated entirely by peer-reviews.
Spreads and strengthens Popular Values:
The online world is all about virality. Therefore, people tend to spread good things that resonate with their values.
Moves away from Individual Gain:
We have been living in a consumerist world that preaches personal gain and satisfaction. Sharing thus forces us to move away and appreciate collective/societal benefit.
For more information on the developments in Islamic finance, check out What is Islamic Crowdfunding?
This is a featured article by Umar Munshi, the Founder and CEO of Ethiscrowd.com. From time to time, Umar will shed light on various topics related to the crowdfunding industry, in a bid to share his thoughts with the community.
EthisCrowd.com is the world’s first Real Estate Islamic Crowdfunding Platform. Our international community of 20,000 private investors crowdfunds investments in entrepreneurial, business, trade and Real Estate activities in Emerging Asia.