Sharing is the New Buying in the Collaborative Economy

Sharing is the New Buying in the Collaborative Economy

Sharing is the New Buying in the Collaborative Economy

Uber, the ride sharing app, continues to skyrocket in valuation. In August 2013, it was valued at $3.7 billion. In June 2014, it was valued at $17 billion. And today, it’s reportedly worth $40 billion, making it the world’s highest valued startup.

This is the financial impact of the new sharing economy, and investors need to take note.

What is this new collaborative economy? Technology and communication has facilitated people in finding new ways of sharing assets such as homes, cars, and vacation rentals. Even more, investments and fundraising can also be shared through crowdfunding and peer-to-peer lending. Bitcoin, using the blockchain, is also peer-to-peer in the way it operates.

The benefits to consumers are obvious: lower prices, convenience, and sustainability. However, what investors need to know is that this new way of doing things can completely disrupt traditional industries. Look at the way AirBnB is disrupting hospitality, Uber is disrupting transportation, or bitcoin is disrupting the financial sector.

These are opportunities, but also threats to the status quo. For investors with money in more traditional spaces, it is worth keeping an eye on the shared economy, simply because it could make your investment obsolete.

Original graphic from: Vision Critical



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