Sharing Economy: Profound Transformations in Global Business Paradigms

Abstract

The article explores the conceptual foundations and defining characteristics of the sharing economy, focusing on its implications, benefits, and challenges. The sharing economy, characterized by the efficient use of underutilized resources, transparency, trust, and reciprocity, contrasts with traditional economic models by fostering peer-to-peer interactions facilitated by digital platforms. These platforms, such as Airbnb and Uber, have disrupted traditional markets by offering more flexible, accessible, and cost-effective services. The study highlights that the rapid growth of peer-to-peer platforms is driven by technological innovation and the increasing demand for flexibility. It also identifies the sharing economy's influence on various sectors, including transportation, accommodation, and professional services, primarily in North America and Western Europe. The findings underscore that collaborative consumption, a key component of the sharing economy, contributes to the development of a circular economy, supports the reduction of overconsumption, and provides financial relief to individuals, especially during economic downturns, such as the COVID-19 pandemic. However, the study also points out the challenges posed by the sharing economy, including regulatory issues, unfair competition, and the risk of monopolistic practices. The lack of clear regulations and the potential for misuse of personal data are significant concerns among consumers. The article concludes that while the sharing economy offers substantial benefits, it also necessitates careful consideration of regulatory frameworks to ensure fair competition and consumer protection. UDC: [338.46:004.78]:330.1; JEL: L86, O33, L26, K23, D71, Q01.