Sharing Economy

Authors: Yasmin Curzi and Enguerrand Marique

See also marketplace.

Sharing economy is defined by the Oxford Dictionary as “an economic system in which assets or services are shared between private individuals, either for free or for a fee, typically by means of the internet”. It is also referred to as ‘collaborative’, ‘platform’, or ‘gig’ economy. In spite of having common aspects, ‘sharing economy’ and ‘gig economy’ often refer to different activities: the former has at its core the idea of sharing, acquiring, or providing goods and services through an online platform, while the latter refers to flexible/temporary jobs.

Thus, the concept of sharing economy is based on the idea that certain economical activities can be changed towards a common social bond, especially with the decentralization enabled by internet access and connectivity. As Calo and Rosenblat (2017) point out, “instead of hailing taxis or booking hotel rooms, today’s consumers can download an app or visit a website to connect with individuals willing to provide access to their private cars or homes. The sharing economy, of course, did not emerge spontaneously”(p. 1625)¹. 

The societal adhesion to these apps is usually fed by a meritocratic idealization of its outcomes for the ‘entrepreneurs’. Nevertheless, as Calo and Rosenblat (2017)² also underline, inequalities are increased and highlighted by these apps – the individuals who usually have success in the ‘sharing economy’ already have properties or capital for investments. In this sense, Calo and Rosenblat (2017)³ propose shifting the concept to ‘taking economy’. 

Similarly, Finck and Ranchordás (2016) distinguish the so-called sharing economy with “genuine sharing practices” (p. 15)⁴ driven by solidarity, in several cities such as Medellín, Colombia. They view four features characterizing the sharing economy: a technology that enables multiple and simultaneous transactions, a sociological or cultural element of a sharing mentality, the existence of trust among participants, and urban dynamics. by do not always generate good outcomes for the consumers or entrepreneurs in the sharing economy. Even in the presence of these elements, though, does not guarantee good outcomes for the consumers or entrepreneurs in the sharing economy: for instance, Uber drivers and AirBnB hosts are subject to extreme control by these companies, without having labor rights accordingly or any possibility of symmetry in their relationship with the companies. Beyond labor rights, Calo and Rosenblat (2017)⁵ also point out that regulators are often challenged with questions about the true nature of these companies and, therefore, their liability as “intermediaries of services”.  More generally, it is apparent that, due to its innovative nature, the economy of the digital platforms constantly defies traditional regulation (Baptista, Keller, 2016⁶; Ranchordás, 2015⁷; Edelmann; Geradin, 2016⁸). 

Reference

1. Calo, R., Rosenblat, A. (2017). The taking economy: Uber, information, and power. Colum. L. Rev., 117, 1623.
2. Calo, R., Rosenblat, A. (2017). The taking economy: Uber, information, and power. Colum. L. Rev., 117, 1623.
3. Calo, R., Rosenblat, A. (2017). The taking economy: Uber, information, and power. Colum. L. Rev., 117, 1623.
4. Finck, M., & Ranchordás, S. (2016). Sharing and the City. Vand. J. Transnat’l L., 49, 1299.Ranchordás, S. (2015). Does sharing mean caring: Regulating innovation in the sharing economy. Minn. JL Sci. & Tech., 16, 413
5. Calo, R., Rosenblat, A. (2017). The taking economy: Uber, information, and power. Colum. L. Rev., 117, 1623.
6. Baptista, P., Keller, C. I. (2016). Por que, quando e como regular as novas tecnologias? Os desafios trazidos pelas inovações disruptivas. Revista de Direito Administrativo, 273, 123-163.
7. Finck, M., & Ranchordás, S. (2016). Sharing and the City. Vand. J. Transnat’l L., 49, 1299.Ranchordás, S. (2015). Does sharing mean caring: Regulating innovation in the sharing economy. Minn. JL Sci. & Tech., 16, 413
8. Edelman, B.; Geradin, D. (2016).  Efficiencies and Regulatory Shortcuts: How should we Regulate companies like Airbnb and Uber?. Stanford Technology Law Review.