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I think the "sharing economy" is one of the most impressive rebrands of an idea. It sounds all nice and friendly, who doesn't like sharing? And so new! I've not heard of the sharing economy before!

And it's just people selling things to other people. The same thing we've been doing as a species since we understood the concept of trading, something it seems chimpanzees have a grasp of.




Uber basically figured out how to be a cab company without having employees and without following laws. No overheads on salaries, employee benefits, taxes, or regulations. This is the "sharing economy", really: a libertarian dream. It appears that this has garnered Uber and Airbnb a lot of goodwill because whenever they're discussed online, they always seem to be portrayed as some champion against the evils of the cab or hotel industries. I personally have never felt as slighted by cabs or hotels as everyone seems to be whenever they are discussed online.


> Uber basically figured out how to be a cab company without having employees

Take a look around and you'll find that basically every company has been trying to do that in America for a long time.

The administration staff at many businesses is all outsourced to staffing agencies.

Hiring almost everywhere is outsourced to recruiting agencies.

I know a number of multi-billion dollar corporations pumping hundreds of millions into their tech divisions, where > 95% of the employees are staffed from IT staffing agencies/consultancies.

Nobody employs a landscaper, unless they're a landscaping company.

It appears to be a big secret, but everyone contracts out everything these days. Uber is doing it on the most individual scale, in the most streamlined way I've ever seen. I don't happen to think that's as bad as everyone else does.


Traditional cab companies don't have employees either. I feel like all the critics of Uber must live in a different universe from me, where cab drivers are never mistreated, are paid wonderfully, and consistently provide an on-time and courteous service.


The sharing economy started as a monetization of underutilized assets, which is different and useful.

Then through economies of scale people became dedicated suppliers with dedicated assets, and it's now no longer that unique or altruistic.


How is that different from normal trading? Swapping something you don't need much for something you do, while your trading partner does the same. It's always been done, but some players (ebay for example) made it a bit easier. "Pay people for stuff more easily" doesn't sound as new and trendy as "the sharing economy" though.


The difference is that ebay only deals in assets for sale. The shared economy is more about services for assets that are underutilized.


I really don't understand how this is any different from regular trading. I've been able to pay people by the hour for jobs for a long time. I've been able to find small flatshares (for short periods too) in the past.

AirBNB are different, but the way I think that they're different is not what most people think. The thing they solved which was a real problem was insurance. Sure, there's a site for booking, some scheduling and payment transfer but they're not really key. It's the fact I can go to someone's house and say "Someone has checked my identity and here's a guarantee that if I break/steal things you'll get reimbursed" that smooths over the risks.

Uber, in the UK, is virtually identical to other taxi firms.


AirBnB, Uber, Lyft, etc. are all using assets that were not intended for paid services, whereas the people you are paying for services are using assets that have such intention.

The shared economy is (or was) more about accessing assets that were locked up by personal use, but still being underutilized. From an ethical perspective, it's maximizing value from something that wasn't easily accessible before.


Sharing economy is certainly a lot more catchy and friendly than more accurate descriptions of airbnb or uber like "monetising surplus capacity".


A more accurate description would probably be "pretending to monetize surplus capacity while actually enabling misallocation of scarce resources"


How are Uber and Airbnb a misallocation?


Uber perhaps not, but the main problem with AirBnb is the transformation of homes into de facto hotels. Long-term residential rentals are misallocated as short-term when the supply of the former is already tight.


My definition of hotel is multi-unit building with service workers. It sucks if your neighbour now has 500% more foot traffic, but it's not exactly opening a lumber yard next door.


That's where all the real innovation is going on: marketing terms. I'm amazed at the effect it has on perceptions.




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