concluding the sharing economy

Over the past weeks I have covered several aspects of the shared economy - shared mobility, goods, spaces, food, healthcare and money. They are similar in a sense that they involve sharing a certain product or service, however the ways to go about making the shared industry effective may differ.

In the aspect of shared mobility, from the government's point of view, the main goal is to reduce carbon emissions and traffic congestion. To attain such goals, we would have to reduce reliance on cars with internal combustion engines (by switching to electric cars), introducing efficient public transport models and even alternative modes of transport such as cycling. These solutions usually promote environmental-efficiency such that the total carbon emissions is reduced. Catered shared buses such as shuttle buses from bus or train stations to nearby malls can also increase traffic, spurring economic growth.

However, shared mobility in the eyes of consumers involve making our lives more convenient and at a cheaper price. Ride-sharing applications such as Uber, Grab and Lyft exist to provide a seamless process by allowing us to book rides directly from our mobile phones; no more standing at pavements and frantically hailing for cabs during peak hours. Increased competition results in stiff price wars, benefiting mostly the consumer. Employees and "self-employed" drivers feel the pinch from the cuts in salary, causing them to have to work longer hours for the same amount of pay. Workers in the shared economy are getting paid on a piecework basis, rather than on an hourly basis. Although it is can increase the incentive and motivation to work, having no base pay means that people's monthly incomes depend largely on the demand for their services. For workers who already have stable jobs and use Uber as a supplementary source of income, the piecework scheme would not matter as much. However, for people who work in the sharing economy full time, it might not be financially stable in the long run. Furthermore, these people are seen as "self-employed", meaning companies in the sharing economy are not obliged to provide them with employment benefits such as sick or paid leave. Hence, the main bulk of people benefiting are usually the company and the consumers.

In the aspect of shared goods, the model's main purpose is for users to make money out of the things that they already have at home. These goods are usually highly valued but under-utilised. The profit model usually includes either sharing or renting the goods out via an online platform. There are many components under the shared goods umbrella, thus some types of goods are more valuable profit models than others. It is easier to rent, or sell an electronic gadget compared to a clothing item. This system also largely depends on the durability of a product - if the lifespan of a product is likely to be long, naturally the more it can be rented or sold for. To promote people to get involved in sharing goods, there are initiatives such as flea markets, thrift stores and online peer-to-peer marketplaces for people to list their items for sale.

Shared food, although seems like a feasible way to reduce food wastage and promote social inclusiveness, has many limitations. Current regulations and laws in place do not allow for commercial retailed food to be made in a personal kitchen in someone's home. Other aspects of shared food include selling leftover food at a fraction of its original price to reduce food wastage, or giving away leftover meals to the needy and homeless. There are also more initiatives of purchasing a suspended meal and giving it to someone else in need. Such examples in Singapore include "Chope Food for the Needy" and "Rice Garden". These pay-it-forward initiatives can hopefully reduce the income inequality and overall quality of life in the country.

Shared healthcare can be seen as an opportunity to increase efficiency in hospitals. The common database that hospitals can access to rent non-emergency medical equipment can significantly reduce operation costs and increase utilisation rates. This also means that more resources can be diverted into other aspects such as research and development.

The sharing economy creates new jobs for people, however it also comes at the expense of a reduction in labour force in other sectors. To ensure that everyone in society benefits from the existence of shared companies, more has to be done to provide fair treatment and schemes such that no one is being made better off at the expense of another. The sharing economy's presence in society will only increase with time, and it has great potential to reduce inequality and promote efficiency. With more regulation and improvements being made, I do believe that the sharing economy can promote long term sustainability not only for users of the shared economy but society as a whole, not forgetting the environment.