Sharing is caring! I know many have heard your parents or grandparents use the term growing up. It’s funny because it’s an essential key in the sharing economy. So as you look back, you may want to thank them for getting you started on the business style that isn’t going away any time soon. In a recent post by @PwC_UK, we get an update on how the sharing economy is evolving and what potential impact it can have in the next 10 years.

Sharing curve

Many different sectors have adapted the sharing economy lifestyle and it truly is amazing; things like travel, equipment, rentals and even online staffing. While many sectors are in different parts of the life cycle, it is great to see how they are evolving. As you can see below, the life cycle is broken down into niche, breakthrough, normalized, mature, and decline or rebirth. Car rentals are much further along the life cycle than the other sectors as seen in the image from PWC analysis. These sectors have been around for ages but the sharing economy is putting its own twist on things.

When renting a car, many have the first instinct of Hertz or Enterprise. However, in the sharing economy a company like @Getaround is on the rise and changing the traditional ways of renting vehicles. With peer-to-peer sharing, we are given a wider selection of vehicles to rent, more flexible renting, such as by hour, and at cheaper rates depending on the vehicle.

On the other hand, in the niche cycle, we have peer-to-peer lending and crowdfunding companies such as @LendingClub and @Kickstarter. Lending club brings an element that is much different than traditional bank loans. They connect borrowers with potential investors and are able to do it at much lower rates. Kickstarter brings a unique offering to the table, with their company giving the exposure and funding needed to make someone’s dream project or company come true. People pledge money to projects they support and if they are able to raise enough funding, the project can go into production.

Growth

The different sharing sectors are growing at a rapid pace that is really astonishing. As shown in the image below, peer-to-peer lending and crowdfunding is leading the pack at a 63% growth rate and the next closest is online staffing at a 37% growth rate. While the other sectors are growing as well, traditional rental sectors must be careful as they are experiencing minimal growth with the sharing economy growing so rapidly. The traditional rental sectors have some serious competition on their hands and it is just a matter of time that more enterprise companies join the movement before they are left behind.

“By 2025, the same five sharing economy sectors could generate over half of overall sales in the ten sectors- a potential revenue opportunity with $335bn.” – PWC analysis

Seizing the Opportunity

Will more companies adapt to the sharing economy business style? Many have proven its power, such as @Airbnb or @Uber, and have risen to the top. Of course there will be barriers to overcome internally and externally to succeed, but that’s part of any facet of life. While competition is increasing in the sharing economy sectors, one of the most important challenges to overcome is to be able to keep that unique element to your company. What can you offer that your competitors can’t? Being real can be one of the greatest elements of your business. Nobody likes a liar, especially when it is with a potential client.