{"id":289,"date":"2020-01-07T19:16:11","date_gmt":"2020-01-07T19:16:11","guid":{"rendered":"http:\/\/ladintax.com\/blog\/2020\/01\/07\/the-state-of-the-sharing-economy\/"},"modified":"2020-01-07T19:16:11","modified_gmt":"2020-01-07T19:16:11","slug":"the-state-of-the-sharing-economy","status":"publish","type":"post","link":"http:\/\/ladintax.com\/blog\/2020\/01\/07\/the-state-of-the-sharing-economy\/","title":{"rendered":"The State of the Sharing Economy"},"content":{"rendered":"
\n

The financial hardships of the
\nGreat Recession forced many people to start thinking outside the box. The \u201csharing
\neconomy\u201d gained popularity in the late 2000s because it provided more
\naffordable means to travel, maintain homes and access piecemeal work for small
\nbusinesses.<\/p>\n

This was the beginning of Airbnb, Uber
\nand other community-based platforms that enable peers to share access to goods
\nand services.1<\/sup> The concept is basically an economic personification
\nof \u201creduce, reuse and recycle,\u201d as people can make money by renting out their
\nunderused assets, such as parked cars and spare bedrooms. <\/p>\n

The sharing platform offers positives
\nto retirees on both sides of the coin. Those living on a fixed income can
\nreduce expenses by vacationing in a low-cost Airbnb or eliminate the cost of car
\nownership by using rideshare services. On the other hand, renting out a spare
\nroom or becoming a rideshare driver can provide both a steady stream of
\nsupplementary income as well as a few hours of human contact and entertainment.<\/p>\n

If you\u2019d like to explore ways to create
\nan income stream in retirement or consider areas where you may be able to cut
\nback expenses, come see us. We\u2019d be happy to discuss your financial options
\nbased on your unique situation. <\/p>\n

Today, approximately 111 million
\nconsumers utilize the sharing economy in one form or another to earn money,
\nsave money, enjoy convenience and\/or simplify their lives.2 <\/sup>However,
\nlike all new business concepts, the sharing economy has experienced a variety
\nof challenges as it has matured in its business life cycle.3<\/sup><\/p>\n

One of those challenges revolves
\naround the idea of sharing your assets with strangers. The sharing economy is
\nbuilt on trust, and the success of profitable entrepreneurs lies with earning a
\ntrustworthy reputation.4<\/sup><\/p>\n

There are occasional reports of fraudulent listings posted
\non online platforms, improper privacy abuses and visitors defacing private
\nhomes. While most of the sharing economy is relatively unregulated, some
\nindustry leaders have taken steps to institute verification credentials, review
\nprocesses and guarantees.5<\/sup><\/p>\n

It will be interesting to watch how young adults adapt to
\nthe sharing economy, perhaps participating enough to never even need a full-time
\n\u201creal job.\u201d The generation of consumers who grew up with this economic platform
\nmay never understand the value of owning a car or buying a second home. This
\napproach offers fewer opportunities to build equity but also fewer ways to
\namass substantial debt.<\/p>\n

The sharing economy also provides other cultural,
\nnon-monetary benefits, such as social capital. This is the advantage of networking
\nwith a variety of different people. Over time, a Lyft driver learns
\ntransportation routes throughout their community, all while overhearing or
\nengaging in conversations about local businesses, restaurants and people. It\u2019s
\neasy to see how the driver could become a de facto cultural ambassador and tour
\nguide for the area. Case studies have shown interactions in the small, intimate
\nspace of a vehicle can also lead to new friendships, job leads, service
\ncontractors (e.g., handyman) and other favorable outcomes.6<\/sup><\/p>\n

Content prepared by Kara Stefan
\nCommunications.<\/em><\/strong><\/p>\n

1<\/sup> Jim Chappelow. Investopedia. June 25, 2019. \u201cSharing
\nEconomy.\u201d https:\/\/www.investopedia.com\/terms\/s\/sharing-economy.asp<\/a>. Accessed Nov. 26, 2019. <\/p>\n

2<\/sup> PYMNTS.com. Nov. 26, 2019. \u201cLessons From Airbnb On
\nSolving The Sharing Economy Trust Issue.\u201d https:\/\/www.pymnts.com\/fraud-prevention\/2019\/lessons-from-airbnb-on-solving-the-sharing-economy-trust-issue\/<\/a>. Accessed Nov. 26, 2019. <\/p>\n

3<\/sup> Corporate Finance Institute. 2019. \u201cBusiness Life
\nCycle: The 5 stages of a business\u2019 life.\u201d https:\/\/corporatefinanceinstitute.com\/resources\/knowledge\/finance\/business-life-cycle\/<\/a>. Accessed Nov. 26, 2019. <\/p>\n

4 <\/sup>Knowledge@Wharton. Oct. 31, 2019. \u201cHas the Sharing
\nEconomy Disrupted Marketing? Not Quite\u2026.\u201d https:\/\/knowledge.wharton.upenn.edu\/article\/sharing-economy-marketing-strategy\/<\/a>. Accessed Nov. 26, 2019. <\/p>\n

5<\/sup> PYMNTS.com. Nov. 26, 2019. \u201cLessons From Airbnb On
\nSolving The Sharing Economy Trust Issue.\u201d https:\/\/www.pymnts.com\/fraud-prevention\/2019\/lessons-from-airbnb-on-solving-the-sharing-economy-trust-issue\/<\/a>. Accessed Nov. 26, 2019. <\/p>\n

6 <\/sup>Knowledge@Wharton. Nov. 14, 2019. \u201cWhy Ridesharing
\nReaps Unexpected Benefits.\u201d https:\/\/knowledge.wharton.upenn.edu\/article\/ridesharing-culture-benefits\/<\/a>. Accessed Nov. 26, 2019. <\/p>\n

We are an independent firm helping individuals create retirement
\nstrategies using a variety of insurance products to custom suit their needs and
\nobjectives. This material is intended to provide general information to help
\nyou understand basic retirement income strategies and should not be construed
\nas financial advice. <\/em><\/p>\n

The information contained in this material is believed to be reliable,
\nbut accuracy and completeness cannot be guaranteed; it is not intended to be
\nused as the sole basis for financial decisions. If you are unable to access any
\nof the news articles and sources through the links provided in this text,
\nplease contact us to request a copy of the desired reference.<\/em><\/p>\n

1037365B<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The financial hardships of the Great Recession forced many people to start thinking outside the box. The \u201csharing economy\u201d gained popularity in the late 2000s because it provided more affordable means to travel, maintain homes and access piecemeal work for small businesses. This was the beginning of Airbnb, Uber and other community-based platforms that enable…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_expiration-date-status":"","_expiration-date":0,"_expiration-date-type":"","_expiration-date-categories":[],"_expiration-date-options":[],"footnotes":""},"categories":[1],"tags":[],"_links":{"self":[{"href":"http:\/\/ladintax.com\/blog\/wp-json\/wp\/v2\/posts\/289"}],"collection":[{"href":"http:\/\/ladintax.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/ladintax.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/ladintax.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/ladintax.com\/blog\/wp-json\/wp\/v2\/comments?post=289"}],"version-history":[{"count":0,"href":"http:\/\/ladintax.com\/blog\/wp-json\/wp\/v2\/posts\/289\/revisions"}],"wp:attachment":[{"href":"http:\/\/ladintax.com\/blog\/wp-json\/wp\/v2\/media?parent=289"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/ladintax.com\/blog\/wp-json\/wp\/v2\/categories?post=289"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/ladintax.com\/blog\/wp-json\/wp\/v2\/tags?post=289"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}