The document discusses the sharing economy and how companies like Uber and Airbnb have grown significantly despite not owning any key assets themselves. It notes that the sharing economy is enabled by technology and utilizes existing, underused assets. Examples mentioned include Uber and Airbnb for transportation and accommodation, as well as an Australian parcel delivery service called Sendle. Both opportunities and challenges of the sharing economy model are discussed, such as bypassing regulations, effects on traditional industries, and ensuring consumer safety.

1. By: Andy McWhirter 26 APRIL 2016

2. A THOUGHT…
UBER IS THE WORLD’S LARGEST TAXI COMPANY;
YET OWNS NO CARS.
AIRBNB IS THE WORLD’S LARGEST HOTEL
COMPANY;
YET OWNS NO HOTELS.

3. TAXI SERVICE
ALLOWS THE EVERY DAY
PERSON TO TURN THEIR CAR
INTO A SOURCE OF INCOME
CHEAPER THAN A REGULAR
TAXI
USERS PROVIDE A FEEDBACK
RATING
 ACCOMMODATION PLATFORM
 THE MARKET BETWEEN HOTELS
AND COUCH SURFING
 MANY HOME OWNERS AND
RENTERS HAVE SPARE
BEDROOMS
 FEEDBACK AND RATINGS

4. SHARING ECONOMY BUSINESS
A BOOK TITLED “THE SIXTH WAVE” BY JAMES
CHIN MOODY DESCRIBES A NEW INDUSTRIAL
BOOM.
DRIVEN BY: TECHNOLOGICAL INNOVATION AND
A SCARCITY OF RESOURCES.
CHARACTERISED BY THREE PARTIES: THE
BUSINESS PLATFORM, THE BUYER, THE SELLER.
MAKES USE OF EXISTING OR UNDER-UTILISED
CAPITAL AND INFRASTRUCTURE.

5. SHARING ECONOMY BUSINESS
START-UP COMPANIES CAN LAUNCH WITH LITTLE CAPITAL
INVESTMENT.
BUYERS ACCESS BETTER PRICES.
THE AVERAGE PERSON CAN CREATE AN ADDITIONAL
INCOME.
NAB BANK: LENDING TO SHARING-ECONOMY COMPANIES IS
GROWING AT A RATE OF 140% PER YEAR.

7. THE COST OF UBER

8. AIRBNB

9. AN AUSTRALIAN IDEA
 STARTED BY JAMES CHIN MOODY
 A PARCEL SERVICE THAT PROVIDES PICK
UP AND DELIVERY FOR A FLAT RATE
 AUSTRALIA-WIDE
 CHEAPER THAN AUSTRALIA POST
 EASY TO USE ONLINE PLATFORM

10. OTHER EXAMPLES
 Space rental.
 Everything from commercial
warehouses to storage
spaces to carparks.
 Freelance hire.
 Freelancers can advertise
their services: web
development, design, editing,
customer service etc.

11. CONSIDERATIONS
RELATIVELY NEW BUSINESS MODEL AND UNCHARTERED WATERS.
ISSUES CAN ARISE IN THE FORM OF TAXATION, WAGES, CONSUMER SAFETY AND
LEGAL PROTECTION.
UBER: HAS BYPASSED TAXI REGULATIONS AND LICENSE FEES. THIS HAS UPSET THE
TAXI INDUSTRY.
RATINGS AND FEEDBACK ARE A FORM OF CONSUMER PROTECTION. A WA SURVEY
FOUND THAT WOMEN FEEL SAFER USING UBER OVER A REGULAR TAXI.

12. WHAT DO YOU THINK?
IS SHARING ECONOMY THE FUTURE OF
BUSINESS?
WOULD YOU USE UBER, AIRBNB OR
SENDLE?

13. INSPIRED BY THESE NEWS ARTICLES:
Soul aims to be world capital of the sharing economy
http://www.worldcrunch.com/business-finance/seoul-aims-to-be-world-capital-of-the-sharing-economy/c2s21009/
Memo to Australia Post: Sendle has arrived
http://www.smh.com.au/it-pro/business-it/memo-to-australia-post-sendle-has-arrived-20150813-giypcs.html
Big Businesses get more out of sharing economy
http://www.smh.com.au/business/consumer-affairs/big-businesses-get-more-out-of-sharing-economy-20160413-go5bep.html
The sharing economy isn’t about sharing at all
https://hbr.org/2015/01/the-sharing-economy-isnt-about-sharing-at-all
The dark side of Uber
http://www.theguardian.com/business/grogonomics/2016/apr/18/uber-airbnb-sharing-economy-tougher-rules-australia
3 Reasons to cheer Uber and the Sharing Economy
http://fortune.com/2015/07/20/uber-and-the-sharing-economy/