The paper “ Etsy, Task Rabbit, Uber, and Airbnb Business Models - Merits and Demerits of Sharing Economy, Traditional and New Collaborative Business“ is a potent variant of case study on business. Many resources are lying idle in the entire world that when put to proper use can help boost the economic life of the people. Through micro-entrepreneurship people can convert their knowledge, time and other assets in making a profitable commercial sector, therefore, a micro-entrepreneur is an individual who makes money by renting their property to others. Over the years, these small businesses have been growing, and some examples include Etsy, Task Rabbit, Uber, and Airbnb.
The making of this new economy focuses on individuals and technological empowerment that allow people to do their jobs through the celebration of time and life to make cash. Technology gives way for people all over the world to monetize their desires. There is no restriction on these platforms for all human races who want to increase flexibility, time usage, and quality to improve life through raising their economic standards. The collaborative economy is a simple concept, which ensures consumers get what they need from one another rather than having to go to large businesses all the time to get their goods and services.
The peer-to-peer economy enables people to efficiently access, distribute and make resources among related parties which include families, classes, community, and companies (Cannon, Sarah, and Lawrence Summers 2014, pp. 24-28). Participants involved in collaborative consumption are a platform provider, service provider, and a consumer. The role of a platform provider is to avail customers of the assets of the peer service provider. The core principle of this report is to analyze collaborative innovation and micro-entrepreneurship thorough investigation of the impacts of Uber to the traditional Taxi firms. Uber, a collaborative economy company, as the platform provider of online transportation, coordinates clients in search of transport with the owners of idle vehicles.
The collaborative economy has mainly affected the taxi industries via Uber and other companies, which are ride-sharing services. 2. Merits and demerits of sharing economy 2.1 MeritsWorkersIn this case, there is the involvement of drivers of Uber. The collaborative economy provides safety measures to the drivers.
The activity is cash-less and therefore there is no need of worrying about the fares and do not carry any cash which may tempt robbers. Uber provides flexibility and freedom to the drivers as they can log in to the system always and can decide to carefully allocate their duty time and effort in ways that suit their circumstances and goals. Consequently, they avoid expenses involved in taxi rentals by getting their vehicles and using them to make the profit. Drivers also escape stress caused by office politics and favoritism because the application makes dispatchers relevant.
Aggressive, rude and peace-violating passengers get removed from the network making it easy for drivers to carry out their tasks. Drivers have the opportunities to rate their consumers, and therefore risky activities towards the drivers can cause account deactivation by sharing economy, Uber. The collaborative user builds conductive relationships among the service providers by creates trust and reduces threats (Hamari, Sjö klint and Ukkonen 2016, pp. 2047-2059). It makes innovation ground to a market through the platform vendor. Finally, sharing economy enables both the peer service to render and the platform provider to benefit economically.
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