The Implications Of A Sharing Economy

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The implications of a sharing economy are a hot topic for debate in the news and research journals and are continually being monitored through a deeper analysis of its roots; but what is a sharing economy? “A sharing economy is an economic system in which assets or services are shared between private individuals, either free or for a fee, typically by means of the Internet” (“Sharing Economy,” 2016). The course reading, I have chosen to discuss is the news article, “Debate over Airbnb and Uber reveals hypocrisy of ‘sharing’ economy” written by Jason Proctor, who discusses the controversies surrounding a sharing economy. The current housing crisis that is propagating throughout Metro Vancouver is an example of how a sharing economy can have…show more content…
Airbnb’s success can be predominately correlated with the rise in social media and technological advancements which has reshaped the nature of marketing communications (Berthon, Pitt & Campbell, 2008). This is due to the fact that consumers’ profiles become part of the augmented product offering; buyers and sellers refer to social media content as a valuable source of information and reliability regarding the opposite party.
Firstly, it would be expected that with the exponential uprising in Airbnb and an increasing number of people using vacation rental and accommodation sharing sites to find unique and relatively affordable places to stay, Airbnb would be a positive evolvement of technology and its powers. However, academia moves at a much slower pace than media and pop culture, which can create drastic socioeconomic burdens on a city such as Vancouver. This issue is illuminated by Proctor (2016) when he refers to a previous era, when his article states, “the guy who fixed your car was never going to harness the power of social media to threaten the global automotive repair business” (para. 6). Overall, the power of a sharing economy can be illustrated through Vancouver’s skyrocketing housing prices. Sawatsky (2016), a graduate student at SFU, found that more than two-thirds of Vancouver Airbnb’s listings were actually entire homes. This has a drastic impact on the housing market as these listings are all for short
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