Business Economics Assignment

Shoaib Hossain
2021JULB01003
 1. What are the impact of sharing economy activity?
Sharing economy is based on trust, it is there to utilize the underutilized
resources of the economy to its optimum level.
The impact of such an arrangement is:
House-/bed-sharing sector
Renting out spare rooms or couches via platforms such as Airbnb and Xiaozhu,
a primary accommodation-sharing platform in China, generates new sources of
income for house owners (Bernardi, 2018; Jordan & Moore, 2018). Hosts
particularly benefit if trust is established via bilateral reviews (both sides
review each other) because it leads to higher ratings and allows them to
increase their prices (Proserpio, Xu, & Zervas, 2018). Hosts’ perceived
trustworthiness leads to higher reservations of listings (Wu, Ma, & Xie, 2017).
Users in turn can save money by making use of trust-based commercial
sharing, such as staying in peer-to-peer accommodations, which provide
cheaper alternatives to traditional options, for example, hotels (Apostolidis &
Haeussler, 2018; Sthapit & Jiménez-Barreto, 2018; Toni, Renzi, & Mattia,
2016; Varma, Jukic, Pestek, Shultz, & Nestorov, 2016); in particular, shared
rooms (vs. entire apartments) attract travelers who seek to save money (Lutz &
Newlands, 2018). As another benefit, the prices for shared accommodation
tend to be more stable (Gibbs, Guttentag, Gretzel, Yao, & Morton,
2018; Zervas, Proserpio, & Byers, 2017).

Car Sharing
In the car- and ride-sharing sector, providers and users benefit from trust-
based commercial sharing. Drivers face lower entry barriers into the driving
market and receive better pay while having more flexible working hours than
they often do at traditional taxi companies (Kashyap & Bhatia, 2018; Vaclavik &
Pithan, 2018). Users in turn profit from increased efficiency and affordability, in
particular when using carpooling options, such as UberPool or Lyft Line
(Sarriera, Álvarez, Blynn, Alesbury, Scully, & Zhao, 2017).
 2. What is the right policy response?
The right policy response to the functioning of the sharing economy is:
 Complete bans or overly complex regulations can overwhelm
innovation. To develop a new business model, the government must
first create an environment that encourages while builds the
infrastructure needed to develop the Innovation Center. Public-private
partnerships can also play an important role in developing new
businesses for the sharing economy.
 Politics must be civic-centric with the aim of increasing the general well-
being of the population, improving quality of life, and improving
ecological and social well-being.
 Proactive approach: In many regions, governments allow the sharing
economy to exist in gray areas, leaving policy outcomes to courts,
courts, and unexpected regulations. New business models need to be
mainstream, and governments need to create clear frameworks that
minimize uncertainty.

3. How is the platform economy sustainable?

Platform economy is a term that refers to the current transition of the world's
most valuable companies from primarily providing products to primarily
providing platforms. The true platform economy is fast, flexible, and enabled
by digital technology and features. The platform economy is sustainable in the
following ways:
 The innovative and entrepreneurial nature of the platform enterprise
makes it an excellent testbed for new ideas and initiatives. You are in a
good position to do good things and can easily promote new sustainable
solutions and ideas as part of your normal business development.
 Platform companies often do not hesitate to try new things and find that
they are actively testing new sustainable solutions and processes before
being asked by policy makers. If these tests are successful, the nature of
the platform allows the solution to be quickly scaled across the
enterprise.
 Rent the Runway carried out environmentally friendly dry cleaning
across regulatory standards beyond regulatory standards. did. By
 embracing the entrepreneurial spirit of platform enterprises and not
being afraid to try new things, all enterprises can take the lead in finding
new solutions and providing and ensuring more sustainable future
savings. You can spend valuable time.
 More traditional companies are often working on ex post facto copying
and refinement of their sustainability approach. From a sustainability
perspective, it took time to recognize the impact of day-to-day
operations.

4. How are our cities changing?

The emergence of carpooling and home-sharing services such as Uber, Lyft,
and Airbnb is affecting cities in many ways.
These alternative platforms help people meet their travel, accommodation,
and transportation needs.
Secondary infectious diseases have also emerged, which can have significant
political impact on cities. In the real estate industry, Airbnb is accelerating the
effectiveness of gentrification by taking advantage of new urban areas
previously unknown to tourists. People are beginning to consider the income
value of assets in the sharing economy when considering the prices, they are
willing to pay.
In transportation, Uber and Ola are beginning to transform the demand for
transportation. In most cities, carpooling apps have already been cited as a
factor in reducing demand for public transport services, and night transport
services are particularly vulnerable. If city authorities choose to adjust service
levels to meet demand, it can lead to some cost savings, but of course it also
affects those who depend on that service.

5. How do we plan long term?

 The global sharing economy market is expected to grow significantly
during the forecast period from 2021 to 2026. The market is growing
steadily in 2020, and the market is expected to rise beyond the
expected range as key players adopt more strategies.
 The sharing economy is dynamic and will continue to grow. This
economy is full of uncertainty.
 Companies that provide rental services are often regulated by federal,
state, or local governments. Unlicensed individuals who provide rental
services may not comply with these regulations or pay related costs.
 This may mean giving them the advantage of allowing them to charge a
lower price. Therefore, you need to adapt to price fluctuations.
 Gain access to a variety of durable consumer goods that can be shared
 Creating additional business areas is also a step forward. Companies can
take their shareable products to the next level by partnering with the
platform to develop new product lines suitable for sharing.