Do you need a ride? A room? A meal? Open the app and make it happen in seconds. You know, like why buy the car when you can be a part of carpool instead! This is what the shared economy is. The term was first coined in 1978 and is simply the rage these days.
If you haven’t heard of sharing economy by now, well, you’re simply staying out of the loop. The model for collaborative consumption, it is an economy that allows individuals to give something they own or share their expertise with the ones in need.
Born between 1980 and 2000, the attitude of millennials is shifting towards ‘sharing economy’ from ownership and consumption. This economy grants millennials the kind of convenience they desire without the responsibility of up-keeping a service. It allows them to order what they need, whenever they need without worrying about how they are going to get it. And, this is why the millennials are the biggest propellers on the shared economy.
Millenials are simply different from the older generations. According to the data from Maru/Matchbox, the younger generation participates more in the shared economy as compared to the older respondents. 32% of the millennials said they use hailing ride service, while only 12% of the people of age 35 and older said they did so.
For Gen Y and Z, the sharing economy is one of the best opportunities to save money. According to another poll conducted by Ford Motor Company among the millennials, it was found that-
- 1 in 3 millennials is interested in renting out their stuff as a way to earn extra money.
- They share because it gives them the opportunity to try out new products and have access to more options.
For every millennial this day, access is more important than ownership. Why? Read here: According to the Harris study, 78% of the millennials prefer to choose the money on a desirable experience over possession. The three major factors that have led to this scenario are:
As the age of Great Recession came in, the Millenial generation had to accept an uncertain economic landscape as their new normal. Moreover, with the ever-increasing costs of living, education, and traveling, they prefer to rent the things to cut down on the overall costs.
The Economic Laws Of Scarcity.
In today’s generation, there is no such thing known as scarcity. Technology has evolved to the extent that it has made one ownership just one click away. Hence, the traditional laws of supply and demand are completely altered.
Social Media and The Fear Of Missing Out.
Millenials seek for the experiences that they can share on their social media channels. So, how about that carpool selfie or a groupie with the people in bnb? All they want is to collect posts, experiences, likes, and followers instead of the possessions. Furthermore, the fear of missing out also makes them take a step towards the shared economy.
The other reasons due to which the GEN Y and Z are giving preference to the collaborative consumption are-
Their main focus is on sharing rather than owning the things.
With the concept of sharing economy coming in, renting is simply better than buying, for the millennials at least. Gone are the days when people considered it important to have things as their own asset. Today, millennials are simply reluctant to own the items like cars, house, consumer durables, and more.
For instance- the millennials have no idea when they have to move from a city; when they have to switch a job, and a major expenditure is seen as risky. Buying a home furnishings worth thousands of rupees can be an issue, but renting furniture and appliance for 2000 a month is convenient for many.
Moreover, they save on the maintenance costs and also consider living a frugal life as the best option.
The various startups are giving them the same convenience.
As the trend of sharing economy cashed in, various startups also started working on the same trend. The various companies like Uber, Airbnb, and Lyft are also the prime examples of the ‘shared economy’ trend.
Furthermore, In India, the startups like Zoomcar allow the individuals to rent a car in cities like Pune, Delhi, and Bangalore for traveling within the city and out.
With this kind of startups, the collaborative consumption is rising for the people who don’t want to buy a car or just want to use it occasionally.
Sharing is Caring!
This is the mantra on which every millennial has living by.
The millennial generation believes that buying assets is futile when you can simply share the assets. In the shared economy, the millennials share cars, bikes, and help others, themselves in accomplishing the tasks.
With the help of applications, and more, they find ways to organize the market such that they can maximize the return on assets; they borrow, own or rent.
The growth of collaborative consumption and the shared economy will keep growing because the Millenials find it easy, cheap, convenient, and trendy.
With this generation, it seems there will be no halt for the shared economy. Moreover, it will continue to expand as their needs keep growing.
So, all we can say is, SHARING IS CARING, as long as you are practical about it. We can just wait and see how this economy unfolds for us.