How It Works
Services or goods that are privately owned can be shared or rented out via peer-to-peer marketplaces. These activities are typically initiated via apps on technological devices and provide options depending on user location. Different platforms act as vehicles by which different services or goods are available for consumption and the user has the capability of utilizing such services for a economically beneficial cost or value. Virtually all the sharing companies establish trust through crowdsourcing. Online reviews are at the heart of the sharing economy.
The diagram above gives a basic description of how the interactions of individuals and companies within the shared economy function. Owners who offer goods or services upon a specific platform allow users to exchange access to said products in an exchange of a determined equivalent. The platform acts as a vehicle by which users and request offered goods and owners and offer requested goods; the results of the interaction can ultimately end in suggestions or recommendations for or against the owners depending on the quality of the good or service and works vice versa for owners to borrowers— establishing a community of trust in which individuals and depend on the reviews of other participants in the shared economy.
In the shared economy, value is created by users, or consumers and workers, who use an online network or app to maximize the use of assets and resources. Instead of focusing on resource extraction like the economy based upon the manufacturing and mass-production of goods, the shared economy facilitates the exhange and redistribution of resources between participants.