The sharing economy is here to stay Sis moment two million people are renting ‘cxommodation from an online service “eF=sing six million rooms in 81,000 cities in 191 Gmentries. However, the “service provider does not ‘gen any of the buildin ‘acts as a broker for the gente hosts, receiving semmissions from each Gecking that is made. Sece its launch in 2008, = has matched more ‘Seo half a billion hosts eth guests, These numbers may sound ‘Screordinary. But in fact, this is only one of eny examples of our new sharing economy, % which people rent homes, cars, and even ‘sersonal time directly from each other over The internet. ‘at first glance, the sharing economy does ot seem to be too different from traditional Smeshare models for vacation homes or car cool schemes. The big shift is being caused by the minimization of transaction costs, ‘ll thanks to technology. Lower fees and ease of use make a wider range of products ‘end services available to a larger number of scople, which in turn makes those products ‘and services even more attractive. Of course, was possible to rent private rooms, musical instruments or party equipment even before the internet, but it was usually time-consuming, and the scale on which searches could be conducted was very limited. Today's technology provides speed and efficiency. Users can check on their smartphones where the nearest rent-a-bike is parked; social network platforms help confirm user identities and build trust and there are online payment systems that can handle the payments. From a societal point of view, there are even more upsides to the sharing of unused goods within communities. Since we gather more and more possessions such as cars, properties and gadgets, it is to be expected that we will use each less and less. With a sharing economy, owners can offer their private vehicles or rooms to others for a fee. With this type of exchange, the owner can gain an added income and unused items and possessions are not wasted. ‘Ownership is still an important concept, but in today's world, it's more about access. You might wish to live in a nice place, but it doesn't matter ifit's rented or owned. Therefore access to goods and services is becoming more desirable than ownership of goods. There has been a major shift that has led to this change in attitude. Just a few decades ‘ago, people would proudly show off their CD collections. Today mast young people or millenials seem to be content with listening to music in their online music libraries. The older generation's mentality of wanting to buy and own things like cars and houses to spend and display their wealth is much less common amongst millennials, who have not grown up in an era of prosperity. Instead, in our times of economic uncertainty and rising unemployment rates, they are choosing practical flexibility. While older generations might take a little more time to get used to this new mindset, it can be expected that we will see a progression like the one from traditional to online retail.At the beginning, people may have worried about making online purchases because of supposed security issues. But after making their first successful purchases from a source they trusted, they felt encouraged to buy elsewhere. Using a car-hire service for the first time might also convince people to try other services. Another development might be the one we witnessed with eBay. Although it started out as a peer-to-peer marketplace, it is now dominated by professional ‘power sellers: The same may happen with the sharing economy, which also provides new Opportunities for enterprise. There have already been numerous cases of people 1 Technology has made it possible to buying apartments or cars with the sole purpose of renting them out. That is, however, not the main worry when it comes to the future of the sharing economy. The issue that has led to many heated debates is the lack of clear regulations. For example, in the holiday accommodation sector, will home owners renting out rooms have to pay hotel taxes? And will they have to fulfil the same security requirements as hotels? The danger is that although some rules need to be updated to protect consumers, established players will try to push out and destroy rival businesses. But one thing is certain: the sharing economy will continue to shake up our traditional markets. a © access various goods and services more quickly. b © find cheaper deals for specific services. ¢ (© make products look more appealing. 2 One of the arguments for the sharing economy is that a © exchanging goods for free will strengthen communities. b © purchasing something is less appealing than just using it. ¢ © using online platform facilities boosts business. 3. Younger generations have different preferences a © dueto the times during which they grew up. b © regarding the types of accommodation they select. c with respect to their musical tastes. 4 The future of the sharing economy a © depends on whether it can overcome its difficulties regarding safety. b © is rather uncertain because of the influence of established sellers. ¢ © might go through a similar development as online shopping. 5 One issue that is being criticized is that a © competition will tead to unstable prices for the consumers. b © consumers are negatively affected by raised taxes. c © private individuals enjoy unfair advantages over professional businesses.