The sharing economy is big news right now. From Airbnb to Boris Bikes, sharing often makes more sense than buying or renting. It’s a growing economy in the UK, Europe, and in the US. A study undertaken for the European Commission indicates that the sharing economy is expanding much faster than economists predicted back in 2014, in 2015, it generated almost four billion Euros.
The Growth of the Sharing Economy.
PWC believe this is just the start. In their opinion, growth is sustainable and major players within the sharing economy are predicted to generate 80 billion Euros within ten years. However, to achieve this, companies need to overcome many issues, including trust.
Top Businesses making the Sharing Economy Work for Them.
Ten years ago, we wouldn’t have dreamed of staying in someone else’s home when we visited a city. Instead, we would have looked for a hotel or B&B. Today, millions of people use Airbnb to source a room or house for their trip. It’s easy to use and often cheaper than booking a hotel room. Airbnb is the biggest player in the accommodation sharing economy, but there are others, including most notably spareroom.co.uk. Renting out a spare room for a short term let is even encouraged by the government, with home owners now entitled to earn up to £7,500 per year tax free.
Peer-to-peer transportation apps like Uber work for everyone. Car owners can share their vehicle and use it to generate an income and users can call for a ride home if there is an Uber service operating in their city. Alternatively, if you have a car and you don’t want a ride home, click here for a handy website that lets you find a car parking space for rent. Sharing a driveway is cheaper than paying the drive-up rates for car parks in a city like London.
Carpooling to and from the office is becoming increasingly popular. Not everyone wants to make the daily commute on their own. Some people like to share a ride – and fuel – so carpooling is a growth industry. Signing up with www.liftshare.com is a quick and easy way of finding a random person to share with, but there are others, including gocarshare.com and BlaBlaCar. Failing that, you can always stick a postcard up in the office canteen.
The Green Economy.
The reason why the sharing economy is booming is because we are all looking to save money or make money; it’s also better for the environment. Since the global recession kicked off in 2008, times have been tough. The UK economy has largely recovered, but we all learned a painful lesson: don’t spend what you can’t afford and always have a savings pot to fall back on.
Making use of the sharing economy could save you money and, if you are entrepreneurial minded, help you generate a useful second income. However, before you rent your spare room or start driving for Uber, dig deeper into any tax rules that may affect your personal circumstances.
