Uber. AirBnB. Poshmark. DogVacay. All these organisations have capitalised on a growing trend across economies. The Sharing Economy. This concept focuses on the ideology that “access is more important than ownership“, mainly due to skyrocketing…
…university fees, less guaranteed jobs and the growing difficulty of ‘moving up the corporate ladder’.
It is due to these recent economic issues that younger generations are finding themselves adapting to financial restrictions that their predecessors fail to relate with. Insert companies like Uber, whose entire offering and marketing, is dependent on the conception that accessibility to a good/service is becoming more important than its ownership.
However, it is not solely financial issues that is leading to the rise of post-ownership products. The rise of hand-held technologies that enable consumers – at their convenience – to access these brands and companies. Gone are the days of waiting ten minutes to call a taxi service, now are the days where you can see how far away your driver is and communicate with him personally via text and phone calls. Collaboratively, with reviews and personal information displayed, the barrier of not trusting any sharing service has been eliminated. Uber has ensured information of your driver (name, drivers license and average rating) whilst AirBnB details Facebook profiles and previous ratings to the consumer.
Moving on from traditional goods and services, the shift toward fundraising campaigns for individuals and groups has grown into a multi-billion dollar sector of the global economy. Companies such as Propser, GoFundMe and LendingClub are replacing the original method of loans via banks to more customisable and involve less strict credit checking. They revolve around peer-to-peer lending and, similarly to Uber and AirBnB, involve reviews, ratings and customer profiles to ensure consumers feel safe.
As the post-purchase economy continues to move further into prioritising the experience, over complete ownership, it creates a never-before issue for senior management teams who are in the business of selling goods and services to direct consumers. Perhaps the shift to ‘Freemium’ products is a strategy to ease the pressure off this consumer trend? However, it is a trend that cannot be ignored as this sector continues to boom in new sectors whilst generating hundred of billions of dollars for economies across the globe.