Advantages And Disadvantages Of Sharing Economy

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5. Benefits and Downsides of Sharing Economy

Now that the most common claims and rumors about the sharing economy were discussed in a bit more detail, and some advantages and disadvantages were already identified, the following chapter takes again a closer look at them. The purpose of this chapter is primarily directed towards the possibility to predict the future, since depending on which side outweighs the other, the future prognosis will correspondingly modify. In the following, by and large, a distinction between the different types of the sharing economy will not be made, it is intended to serve as an overall overview. Above all, Uber and Airbnb, as the probably most well-known platform providers, are often used for illustrative purposes.
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The criticism which is expressed, however, is directed primarily against tax losses, safety and protection issues, as well as regulatory inadequacies. For example, for many cities and regions, tax revenue from hotelery are an important source of tax income, but hosts from platforms such as Airbnb are not being asked by the state to pay a similarly equally amount as hotels. Safety standards are also subject to different standards, to stay with the example of the accommodation sector, private accommodations are not regularly exposed to examinations, whether they represent fire traps to its visitors or if they meet the same security policies as hotels. (Baker, Gaurdian, 2014) In the following, some of these criticisms are going to be discussed in more…show more content…
All in all, a picture of unfair competition stands out, which needs to be reduced unconditionally. Because how should a company, which is strictly regulated and, for example, also has to hand over high tax levies to the state, compete with a company which is not subject to the same rules, but instead much lower and more convenient
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