The Sharing Economy: Understanding and Challenges

Abstract

The sharing economy is the person to person (or Peer-to-Peer) economic activity that is facilitated by digital platforms. The sharing economy concept strengthens the innovation perspective. Thanks to new technological platforms (especially social media), especially city citizens have gained the power to call and track a ride, rent out their homes, and share goods. The global revenue from sharing economy companies is projected to increase to approximately $335bn by 2025. Speaking of the future there is important nexus between Internet of Things and the sharing economy.

Keywords: Sharing economy

JEL Classification: A11