The Sharing Economy : The Case Of Uber

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The Sharing Economy: The case of Uber Recently the number of firms operating in the sharing economy has increased. This essay will look at fundamental principles of sharing economies, companies as multi-sided platforms, network externalities and then provide an in-depth insight into the firm Uber. Focus is on Uber, are the dominant firm in the car sharing sector, with a valuation of $40 billion this month (Condon and Ortutay, 2014). Arguably, Uber’s growth rate is what makes it so exciting to analyse as it was valued at $20 billion just six months ago. To assess Uber’s impact, it is also necessary to discuss how the sharing economy is could evolve and its effect on other industries. There are a number of reasons for the recent emergence and success of businesses using the sharing economy model. The model is based on the idea of idle capacity in the market, so sharing economies aim to offer individuals the chance to share unutilized resources. Undoubtedly, the emergence of new technology like social media and general technological advancement have made it possible for sharing economy firms to operate more efficiently as it is easier to connect different parties in the market. For example, Airbnb is a home sharing website and Coachsurfing is a social networking site connecting travellers to people willing to let them stay for the night. Splinster is a successful bike rental service and Uber is an ondemand transportation service allowing users to locate the nearest Uber driver.
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