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Competition and Regulation Threaten Sharing Economy Markets

March 26, 2017

Eighty-three percent of U.S. broadband households, or more than 250 million consumers, own and use a smartphone. A recent beneficiary to this mass adoption has been the sharing economy phenomenon, which includes sharing apps such as Uber, Lyft and Airbnb. These business models are augmented by real-time data including location, instant gratification, on-demand pricing, and easy payment options.

Their ease and convenience -- built on the intelligence of social, location, and mobility data through a smartphone-plus-app ecosystem -- have created perfect conditions for sharing economy apps to thrive.

In most cases, sharing economy apps connect buyers and sellers, providers and recipients, or owners and users through a well-designed, low-friction app experience that benefits both sides. When such experiences are delivered at scale, they can be massively disruptive or complementary to existing industries and business models.

Currently, 40 percent of monthly sharing economy app users in the U.S. strongly agree that they rarely use traditional services due to their sharing economy app use.

From the article "Competition and Regulation Threaten Sharing Economy Markets" by Parks Associates.

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