Winners and Losers

In a sharing economy that has shifted away from the traditional confines of capitalism, there comes a whole new set of winners and losers, and who benefits from such a shift.

Winners:

Those who ultimately win in a sharing economy as opposed to that of a traditional capitalist economy, will be the consumers. Consumers in a sharing economy will benefit greatly from the lower cost of a product as the sharing economy includes aspects like hiring and regifting that will, in the long term, provide the customers with more value for money, as the product is shared amongst customers literally, but also in experiences and cost.

Employees at our company, under a co-op business structure, will also benefit as they will have a greater say in decision making and be a part of a team with the idea that each worker is represented by one vote of equal weight, no matter the position.

The sharing economy is also a huge win for sustainability and the push away from fast fashion, as it promotes the sharing and reusing of items amongst a group of people and eliminating fast fashion. The eco-conscious consumers benefit by supporting a brand that reflects their values and the workers who provide the services benefit from being ethically compensated for their work.

Stepping away from just the perspective of our company, in a sharing economy, the companies, workers and consumers all end up benefiting in some capacity

Losers:

Pulling away from a traditional CEO “governing” structure towards that of a co-op, the CEO/leadership figure could be considered a loser in the sense that their decision making power has diminished. They are still able to lead and provide an example but the title of the position may differ.

Even in our ideal sharing economy, free labour will still exist even subversively through the efforts of users sharing their experiences on social media platforms. Whilst this isn’t necessarily negative for those providing this free marketing and sharing experiences, they won’t be necessarily compensated, meaning that free labour will continue to exist even within our co-op structured company in a sharing economy.

This, however, will largely benefit the company, generating engagement through word of mouth acting as free advertisement. In almost every case involving free labour, the company at the centre of it benefits over the employees and those providing free labour.

As the sharing economy takes a more sustainable approach through sharing, hiring and reusing items, the company itself could end up being a loser if it doesn’t adapt to changes. Business structures present in a traditional economy where profit is a driving factor could see the company fail in the newly adopted sharing economy where other factors like information, digital presence and engagement become of importance.