Sharing Economy vs Gig Economy: What’s the Difference?

The sharing economy has been around for quite some time now, but the gig economy is just starting to take off. In this article, we explain what they are and how they work. You’ll learn about peer-to-peer platforms like Airbnb and Uber, as well as the different types of gigs that exist (e.g., micro gigs, freelancing, etc.). Then we give you our insights into the future of the gig economy based on our experiences working on TaskRabbit and other startups.

Main Difference

The sharing economy has been around since the early 1900s. However, it was not until the 2000s that it became popular. In this type of economy, companies are able to provide their products and/or services at a lower cost than traditional businesses. This allows them to offer their product at a cheaper price, while still making money.

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Meanwhile, the gig economy is similar to the sharing economy, but instead of using a company’s own employees, they use independent workers. These independent workers may work for multiple companies and can work on projects that they want to do. They usually have flexibility over how much time they spend working and what hours they work.

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What is Sharing Economy?

The concept of a sharing economy has been around for a long time. It is the practice of sharing goods and services with other people. Nowadays, a person in need of something can be more easily connected to the people who have something to offer. Often, these connections are also digitally made.

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The sharing economy refers to the idea of sharing, borrowing, or renting things that aren’t being used. This sharing is usually done through the internet. There are many types of sharing economy, but the most common are car sharing, house-sharing, and bike-sharing.

The Sharing Economy (Sallis, 2015) is a model that allows people to exchange goods or services with each other without the use of a traditional marketplace. It exists in the form of a peer community, which means that communities of users with similar interests or needs are grouped together.

As the sharing economy has grown, it has created a lot of controversies. However, is it really just a “temporary and misguided fad”, as McKinsey & Company (2015) suggests? Or is it a concept that is here to stay? When the sharing economy was first proposed, critics were quick to point out that this new movement was not a sustainable business model and would eventually fail.

Components of Sharing economy

1. Platforms

Platforms are the backbone of any sharing economy business model. They provide the infrastructure that allows people to share their resources. Sharing platforms allow users to connect with each other and facilitate transactions between them.

2. Services

Services are the actual product being shared. In the case of ride-sharing services like Uber, they offer transportation. In the case of Airbnb, they offer accommodation and TaskRabbit offers errand services.

3. Goods

Goods are the physical products being shared. In the sharing economy, goods can include anything from food to furniture to clothing.

Characteristics of the Sharing economy

Some of the major characteristics of the sharing economy are peer-to-peer exchange, shared access, and flexible exchange. This article will highlight these characteristics and also extend the discussion to explore why the sharing economy is such an attractive concept for consumers.

The sharing economy is made up of a number of different elements, such as online platforms that match people with goods and services, for example, a website that matches a person needing a new laptop with an individual who has one to sell. It is also made up of non-profit groups and companies offering goods and services through these platforms that do not charge fees.

The sharing economy as a concept is not new: it has existed for centuries, and Henry Ford is credited for expediting its growth by developing mass production and the assembly line. The concept has also been applied to a range of economic sectors, from the sharing of homes to the renting of bicycles to the leasing of power tools to do a job. Now, the sharing economy has been applied to a range of other products and services, such as ride-sharing, health care, employment, insurance, and even more recently, food delivery.

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In the sharing economy, resources are shared on behalf of a shared owner, instead of owning them individually (e.g., real estate). The sharing economy has been called a “democratization of access” to ownership and the means of production. In the sharing economy, renting resources is considered a legitimate alternative to the traditional, more expensive purchase of those resources. Computer-based sharing economy platforms such as Airbnb and Taskrabbit increase the efficiency of the sharing economy by connecting people who have things to share with those who are in need of them.

The sharing economy, also known as the collaborative economy or collaborative consumption, is an economic concept that emerged in the mid-2000s. It describes the way that individuals and businesses are using the internet to create new commercial models based on the sharing of goods and services. The sharing economy has been associated with new business models, new companies, and new ways to think about competition.

What is Gig Economy?

The gig economy is a type of work that allows people to get paid for their time through online platforms. This includes freelancing websites like Upwork, Fiverr, Freelancer, PeoplePerHour, Guru, etc. These sites allow individuals to offer their services to clients who are looking for specific skills.

1. Why do we need Gig Economy?

In today’s world, many companies have become increasingly reliant on freelance workers and independent contractors. And this trend has only been increasing at a rapid pace over the past few years. In 2016, the U.S. Bureau of Labor Statistics reported that the number of self-employed Americans hit nearly 30 million, greater than the combined total of employees and employers. By 2020, the agency estimates that almost 40 million Americans could be working independently.

2. How does Gig Economy Work?

There are several ways that the gig economy works. One way is that freelancers can use their own personal vehicles instead of using public transportation. Another way is that the gig economy allows for flexible hours and locations. There are even some apps that connect drivers with passengers or goods.
Benefits of the Gig Economy

Gig economy companies offer benefits to both parties involved in the transaction. Employers benefit because they do not have to pay benefits or taxes. They can also save money on payroll costs since they only need to pay for the time worked instead of paying benefits and salaries. Employees benefit because they receive higher rates than what they would normally make at traditional jobs. Additionally, many gig economy companies provide flexible schedules and may allow employees to choose how much work they want to complete each week.

Conclusion

The sharing economy is a concept that was first introduced in 2008. It allows people to rent out their assets to other users who need them. The gig economy has been gaining popularity over the past few years. This type of work environment is often associated with freelancers, independent contractors, and self-employed individuals. In this model, employers hire employees for short-term projects or tasks that can range from a couple of hours to several months.