Saturday, November 5, 2016

Sharing Economy- Let's move there, prefer access to ownership

Have heard it numerous times, when are you going to buy a home and most of the time intellects go like this:-
  • Living in a rented house is not intelligent, you could pay EMI and own a home. 
  • Your home will appreciate and it will be an asset for your lifetime
  • Don't you like to have something, which is your own?

Buying doesn't make economic sense in all Indian cities, as shown below:-

Personally, it is difficult to connect with an idea to buy a home and live there permanently, change is something that drives me internally. I like the concept of access over ownership, minimalism( very difficult to practice) over capitalism. 

 This opens up a conversation for a broader understanding of term-Sharing Economy.

Sharing Economy= Digital Economy + Crowd Sourcing + Venture Capitalists

Why it is better, and how it is relevant in today's world:- 

1. It makes economic sense- long term and short term
2. It is less suffocating, more environment friendly and sustainable ( Use OLA Share than driving your own car)
3. Flexibility in lifestyle ( Today  you are living in a small apartment, you can move into better location
 and a bigger apartment depending on your financial conditions)
4. Empowerment in an era of acute inequality- I cannot buy a car in a place like Singapore, but i can definitely afford a Uber ride

There are downsides to sharing economy, although not of any intense consequence:-
  1. The experience is not consistent, as total experience depends on lot of variables, and standardization is still in nascent stage. For instance,you might get a good air bnb host on one occasion and a terrible one on other occasion.
  2. Sustainable of Sharing Economy is still a big question mark, at the end of day, it is mostly startups backed by VCs, and most of these startups are not anywhere closer to be in profitable zone
  3. There will be a definite increase in productivity/disruption, which might change dynamics of existing industries( For instance Personal car Manufacturers)
My verdict- Sharing Economy is there to stay, with healthy impact on our ecosystem
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