Over the past decade, there has been significant changes to the technology landscape, economic, and social conditions in the market which fuels the rapid growth of the share economy. The share economy is a concept which has been around for centuries dating as far back as 1914. At the end 1914, a unique blend of events led to the rise of carpooling. A recession struck the US while at the same time there was a large supply of cheap automobiles on the city streets. In the city of San Francisco, car owners began offering seats in their cars for the same price as a street car fair, known as a jitney. Both the recession and the availability of an underutilized automobile stimulated the necessity of alternative ways for consumers and producers to …show more content…
Airbnb & Uber are based on the platform business models which facilitates offering value to both the consumers and producers through the network effect. The consumers are offered a low-cost convenient cashless alternative to either reach a destination or have place to stay while the producers can make more efficient use of their car or a room to make additional income. In addition, both companies provide the ability to easily schedule, make payments, eliminate fear through crowdsource rating, empowers the micro-entrepreneurs, and lower the barrier to entry through low capital investment for both producers & consumers. Equally important, they also offer the micro-entrepreneur the flexibility in deciding their working hours or availability. Both Airbnb & Uber also share a very similar cost structure. There are three major components to their cost structure. The cost of technology, salaries for any permanent employees, and advertisement. As for the revenue streams, there are stark similarities between Airbnb & Uber. Both revenue streams are based on commission with some variation due to the industry. Through the platform business model, Airbnb & Uber are able to offer an optimal value proposition by creating value for their collaborators, customers, and the
AirBnB gives platform for people to offer and rent their homes, apartments or rooms to strangers.
Chesky and Gebbia had history. As undergrads, they’d both studied at the Rhode Island School of
During this time period, America saw a great change in its economy. After WWI, many citizens had extra time and extra money. Due to the surplus, they were eager to attain a variety of new products on the market. The greatest example of these technologies is the automobile. Not only did the car become affordable through the use of assembly lines, but it also gave the public an opportunity to travel and live in areas other than the city. Although there was not a great selection of cars back then, progressive advertisement strategies persuaded the public that they indeed needed a car.
The new economic era brought cars. Cars started to be made in the 1800’s but those were thought of as a luxury until the 20’s. In the 20’s Henry Ford came out with the assembly line which allowed the production of cars to increase by 60%. Cars were no longer a luxury and instead became an object that the common person could own. The reproduction of cars opened up a lot of new jobs such as filling stations and repair shops. Cars were the gateway
In the 1950’s, “the standard consumer package” consisted of a home, television set, and car. Eighty percent of American families possessed at least one car, and fourteen percent had two or more. Almost all of the cars sold were mass-produced in the United States. To stimulate further purchases the cars were fabricated to go out of style within a year or two. The highest ranks of corporate America were oil companies and auto manufactures. Detroit was recognized for its vast auto factories. The automobile industry guaranteed the region’s affluence because of its necessity for rubber, steel, and other products. The car and interstate highway system made it possible for Americans to travel long distances. The interstate highway system stimulated
The sharing economy has its perks however also its inconveniences. Mary Dejevsky is the writer of “Uber and the “sharing economy” are leaps into the past, not the future”, and in the text she speaks on the downside of the sharing economy. “There are questions, too, about quality of life and fairness. What recourse do you have if you are a tenant or home-owner disturbed by anti-social short-stayers? If you are a neighbor woken by driveway customers slamming their doors at 6am? If pollution is increased by the many more cars plying for hire? If wages are further depressed by casualization?”, Dejevsky lists various of problems that people face or could face now that sharing economy is becoming a global thing. All the things she mentions are pretty
Stocks were no longer thought of as a long term investment and they became prevalent in conversations ranging from in grocery stores to parties. There were stories of maids, teachers, chauffeur's or everyday people, becoming millionaires from the stocks they had invested in(Brennan). The future was looking bright for many but although much was lavish and seemed
3. Make It Easier to Reject Renters: When a renter sends a request to a host to use their
Although I am one of Uber riders, I do not completely agree to her position. Uber, as a true example of sharing economy businesses, focus on what customer needs and let
Kids this fall will be heading back to school via Uber, Lyft and other services that transport kids . Already, A growing number of families are relying on the services to move kids to and from school, after-school activities and other destinations that require transportation. Therefore, Uber and Lyft must be a very big company and successful and are confident that they know what they’re doing. A lot of people are most likely very busy to take their children to school and after school sports plus they have to agree with someone to take their child to school. Unlike Uber and Lyft, ride-hailing services aimed at children are more likely to operate in the suburbs. This is because, the suburbs are less busy and chaotic. In the city areas it is
Sharing economy is a business and a service built around sharing and renting assets, where the technology has a big involvement, as it’s used as communication between the renter and the borrower. Sharing economy has its advantages and disadvantages, and Suzanne Bearne, Catharine Hamm and Mary Dejevsky are 3 writers that express their knowledge and views relating to the topic of sharing economy.
Many changes have transcribed in the global market since the years of 2008-2009, the years of what could be dubbed as the “Second Great Depression”. The changes made have been of significant impact as the market has had to accommodate or regulate a great quantity of systems that range from the advancement of technological platforms in the compartment of information technology to the increase in demand of less common forms of energy being established by major corporations such as Tesla’s Powerwall home batteries. The increase of applications via phones have even made it easy for investors, even novice investors, to buy shares in stock markets at an international scale with a push of a button, taking great advantage of what the globe offers in
Uber. To many, it is the preferred mode of transportation for a sporting event or concert when traffic is mayhem. To others, it’s a convenient and fast way to step up in da club and get your jiggy on. I have used Uber a couple of time in the states and for the most part, the rides were smooth, comfortable, and direct. As I was embarking on my study abroad journey in Puebla, Mexico, my group was advised to use Uber as it is securer than taxis in Mexico. The first week using Uber was lit. Short time waits and swift pick-ups, no confusion with locations, drivers with good music taste and complimentary water and candy. Drivers would even open the car doors for us, classy af [or you can put “such high class
Given that the definition of a decision maker is the individual who can make the decision without further approval, I would say policy makers or politicians are the key decision makers for UBER and Airbnb. Historically, they have been a decision maker of the society as they were granted an authority to legislate and amend laws. Though they are influenced by a trend in voters, the fact that they are the ultimate decision makers who can decide whether or not to outlaw a new business does not change. In other words, no matter how brilliant, customer oriented system and technology UBER and Airbnb has, if politicians do not approve them or legislate a new law to disapprove them, they cannot legally exist in the market. In Seoul, South Korea, for
1. Analyze Enterprise’s Service Quality Survey. What information is it trying to gather? What are its research objectives?