Sharing economy offers chance to earn extra income
The recent publication of Matthew Taylor’s review into modern employment practices has focused attention on how different the workplace is for many today and has increased interest in the “sharing economy” and its impact on the UK’s labour market. But what exactly is it?
The sharing economy uses digital technologies to connect groups of people and enable them to share assets, information and services.
Often this involves unlocking the use of underused assets, which can provide additional opportunities for their owners – in simple terms enabling people to make money out of items they own but may no longer have a use for or need to use all the time. Looking at it another way, one person’s trash can be another person’s treasure!
It is a rapidly growing sector at the cutting edge of technology and innovation, which is good for both individuals and the wider economy. Sharing economy platforms often offer great opportunities to earn additional income or save money in a way that fits with their users’ lifestyles, offering a valued choice and flexibility.
They can also provide a route to entrepreneurship and engage parts of the labour market that are hard to reach or who are returning to work. And it has had a marked impact on our economy.
While robust statistics for Wales’ sharing economy are difficult to find, overall the UK’s sharing economy has grown the fastest in Europe. Transactions almost doubled to £7.4bn in 2015, from £3.9bn in 2014. Recent studies show the sharing economy has the potential to be worth up to £9bn by 2025 and PwC expect that the UK’s sharing economy is set to expand at over 30% per year over the next decade, facilitating about £140bn worth of transactions per year by 2025.
Growth is linked to the fact we’re living in a digital world – new technology, smart phones, changes in the ways goods and services are consumed, and how people live. British people are entrepreneurial and tech savvy, so the UK is an attractive location to start and grow these types of businesses.
And a recent survey of UK adults showed that while 9% used sharing economy platforms for ‘a good cause’ in the last year, 22% are interested in using one in the future. Not only this, the environmental benefits are clear too – platforms increase efficiency of idle assets and capacity, and reduce waste through recycling.
Sharing Economy UK (SEUK) is the trade body for the sector, which was set up in 2015 to represent UK sharing economy businesses and make it easier for them to contribute to economic growth.
It has a diverse membership with big and small businesses, including start-ups, who broadly fit together under the term sharing economy.
You have probably heard of Airbnb and Deliveroo as some of the larger businesses in the sector, but there are many others too ranging from Grub Club (food sharing), EasyCar (car sharing) and UnderTheDoormat (accommodation).
In March this year, SEUK formed a partnership with the CBI to help underline the economic importance of this fast-growing sector to the UK economy. Sharing economy businesses are now tapping into the CBI’s network and making connections enabling them to grow.
CBI members are similarly taking advantage from learning about this disruptive approach, sharing intelligence and experiences.
And SEUK has also recently opened applications for the Sharing Economy TrustSeal, an independently awarded kitemark given to companies that can show they uphold eight good practice principles.
Eight businesses have been awarded the TrustSeal so far, with many more hoping to be awarded the kitemark.
For the sharing economy to reach its full potential it knows it must continue to build trust amongst consumers.
Ian Price is CBI Wales director