The sharing market has become a big player in today’s economy. This is all thanks to technological advancements in communications, with the emergence of the smartphone. With smartphones people can have a variety of services or goods with the click or swipe. Many new businesses have become popular thanks to the ability of smartphone apps. Examples are Uber, Lyft and AirBnB. These new companies have rocked the established market and taken a lot of their traditional customers. The success of these new sharing economy apps lies in their incentives to new customers. With bonuses or coupons for first time users they attract more potential users. This coupled with a great user experience is what keeps people coming back to use the services of these sharing economy apps. But this does not all come easily, many companies have to deal with lawsuits and regulations that can bring growth to a halt. Competition is also a major hurdle for many new apps on the market, as there is already a heavy saturation and standing out can be a challenge. Overcoming these challenges is where success lies. The potential for growth is also great for these shared economy apps, as they can easily expand to accommodate other aspects but staying in the same area. Growth can also come in the form of acquisitions, some apps can expand by acquiring other companies that offer services similar to what they currently have. The future for sharing economy apps looks great, with challenges to other traditional outlets making competition that we all can benefit from.
Read more: Competition and Regulation Threaten Sharing Economy Markets
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