Societal Drivers of the sharing economy

3 min to read

Increasing the global population increase the total supply demand. In this case, sharing economy has made life easier for areas with high-density levels.

- Sustainability

The sharing economy has a positive impact on the environment by reselling or reusing goods. As a result, we achieve avoiding wasted resources and excessive production.

- Enjoyment

Sharing economy platforms include gamification mechanisms that are the same as used in social media apps. So, selling and buying online defined the online entertainment of users.

- Reputation

Supplier's positive or negative reputation defines consumer behavior. Users like being involved in building trust relationships, so checking reviews, making new feedbacks is a usual thing.

- User–supplier relationship

Relashiundhips between suppliers and users are a positive influence on customer satisfaction. The main point is that user–supplier relationships may also affect consumers' use of sharing economy platforms.

- Network externalities

Network externality it's the value that users receive from a product or service. Furthermore, despite its own influence its also affects the use of a product or service by other users. The effects of the network were divided into two types: Direct network effects, indirect network effects. Lots of items are affected by the externalities of networks.

Many sharing economy platforms use social networks or user recommendations to help others discover new sharing perform at the same time growing users number.

Tetyana Holovchenko
Co-founder, Marketing specialist at CookieDev
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