Collaborative Consumption is an economic consumption model where citizens use modern technologies to sell, buy, provide, share, or rent services and goods. This promotes a responsible and sustainable type of consumption that is profitable for consumers as well as benefits the planet. It is also known as peer-to-peer economy or sharing economy that puts regulators and city policymakers in a definite position. Let us today find out more about shifting perceptions of collaborative consumption.
What is Shifting Perceptions of Collaborative Consumption?
Collaborative Consumption encourages entrepreneurial spirit, making use of non-utilized or existing resources of services and goods to promote creativity and innovation. It is loved by citizens as it provides new earning opportunities and serves and acts as a bridge toward the city’s economy. This leads to shifting perceptions of collaborative consumption. This has given rise to bartering, sharing, renting, lending, trading, swapping goods, and gifting instead of investing.
What Examples of Collaborative Consumption?
Some examples of collaborative consumption are:
- Airbnb is an online platform that allows people to rent space like apartments, homes, and other dwellings to others.
- Ride-sharing is a service that lets people book their rides through their smartphones.
- Bartering is a method in the economy where citizens can exchange services and goods among themselves without the exchange of money.
Also See: What is PV Self Consumption?
Why is Collaborative Consumption Growing?
Collaborative Consumption is growing because it gives an individual a chance to rent or sell unused or undesired items so that they can be used by others. It benefits not only the seller but also the buyer because, for normal consumption, you will need to give a full price but in sharing economy you are not required to do so as it multiplies people and bears the cost.
For example, you can rent out your car if it is not utilized all the time and convert assets into a sort of commodity treat. Physical objects can be used as services.
How are Cities Responding to the Current Shift?
Cities are responding positively, that is, they are happy with the current shift in collaborative consumption. 16 percent are saying that there is rapid growth and almost half of the city is agreeing that growth is taking place. Out of so many services, two services are growing most rapidly, and they are short-term rentals and mobility services.
The survey also shows local favor towards home sharing with 44 percent and ride-sharing service with a 66 percent growth. Local governments are also found to be supportive of rapid growth in collaborative consumption.
These new sharing economy business models have proven to be very beneficial for the cities as they include these modern technologies and make work easier. With the passing of time, it is also becoming the highest priority as it has proven beneficial for all including providers, consumers, and the nation’s economy. So, now you know about shifting perceptions of collaborative consumption and how cities are responding to the current shift.