Uber, AirBnB: Welcome to the Shared Economy

Uber, AirBnB-Welcome to the Shared Economy
June 1, 2017
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With the emergence of the internet, world economy system has changed drastically. There are so many different ways to earn money. So many different business fields that were not conceivable in the past. Internet did create for many people place where they can easily earn the money. Place where they can put their products and sell them directly to the customer. You weren’t stuck on favor or disfavor of big companies. And that is great for the people who create and build their own products. But in last few years, with the emergence of the Uber and Airbnb, the economy has changed once again. And we got the term „Shared Economy“. But is the Shared economy beneficial for the whole economic system? Are workers that are in the contract with those big companies in the problem? Do they work for minimal wages and don`t have any insurance?  Or is this a great way for the people who are unemployed to earn money? We will tell you in this article. So let`s start.

What exactly is shared economy?

Shared economy is an economic system that is built around resources between other people. In this case, the money. This way many people work together to get the certain amount of money that they will share equally in the end between them, no matter which person made more or less in their working hours. This is the simplest possible explanation.  And why is it so different from standard model? Well, because in the standard economic model, if you work more hours, do a better job, you will get a bigger paycheck or get promoted. But in the Shared economy system that isn`t the case. Everyone gets the same amount, that is how people get more motivated to work together, to work equal amount, and to help one another in a need.  The shared economy system is very beneficial for the socialization of the people on the workplace itself. And that is the best way to have a healthy business environment.

Uber and Airbnb and their Shared economy

The type of shared economy that Uber and Airbnb is a little bit different than a standard model. For example, to became a certified Uber driver you need to sign the contract. And if they accept your application then you can start to work for yourself and for them. This does sound strange, but that is the case. You are there to offer their service, you provide the car, and they provide you the mobile app and all the necessary things that are needed to start to work as an Uber driver. And the way that Shared economy works with Uber is that you earn money by driving for them. But you get part of the cut, not all the money that you have earned by driving people around. If you have more traffic during the day, you will earn more money for yourself in the long run, and also more money for Uber. It is easy to see why Shared economy has many benefits. It is pretty impossible to drive people around if you are not a part of some company. By being the part of the Uber, you get the security, frequency of customers, and if you are the great driver you will also get great grades and in the long run, you will become more wanted as a driver. This is a win-win situation for bought parties.

The almost identical thing is with Airbnb. Airbnb gives you the internet platform where you can easily put your home or empty apartment on the site for renting. They give you pretty much everything you need. And then you can start to rent the place. The only thing that you need to do is to keep the place clean, put pictures for reference and offer an acceptable price. Everything else is on Airbnb. It is really hard to rent your home or empty apartment if you are not part of some company or community. By being the part of Airbnb, you making every rent much safer that it could be in any other way. You get paid on time, there are no scams possible. You can also rate every person that has stayed at your place and they can rate you and your place. Yes, you would need to give a cut to the Airbnb. But without them, you would never have such big revenue and such high earnings. Believe us.

Are types of Shared economy that Uber and Airbnb offer fair?

This is the most important question of them all. Is the type of Shared economy offered by Uber and Airbnb fair towards employees? In our opinion it is. It is very fair. They don`t ask you to do who knows what. They only ask you to share the revenue that you have earned. And that is least you can do. Think about it, they are giving you access to all of the functions of their platform. They are giving you access to millions and millions of potential customers. That is something that you would not be able to do by yourself. In the end, it is up to you. You need to decide if the access that they offer enough or if the amount the money that they taking from you is too much. But think about it in this way. By being a part of their system, you are guaranteed to earn money, to get paid regularly if you are a good employee. But if you are trying to do it all by yourself, there is a big chance that you will never succeed, that your business will fall apart very fast.

And the best thing that services like Uber and Airbnb can offer is your security. And the security of the job is one of the most important things when you are looking for a job. With them, you will have access to so many potential customers, and you will never be out of work. Doing it by yourself…..well….can you say the same?

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