By Stephan Manning.
Some time ago people celebrated Airbnb and Uber as new forms of sharing economies that might democratize and challenge existing principles of capitalism. But soon people got disappointed when they learned that Airbnb is reproducing inequality and is becoming just another hotel business, and that Uber drivers went on strike to fight against price cuts of the Uber Corporation, like in any other industry. In fact, disappointments about alternative economies within our capitalist system have a history. Oftentimes, these economies are very limited in scale, they do not sustain, they turn into profit-making businesses, or they turn out very difficult to organize. Famously, Paul Krugman once described the Capitol Hill Babysitting Co-Op as an example of a failed sharing economy: it went into recession because couples would rather bank time by babysitting than utilize the service to care for their children; thus there was insufficient demand for the available sitter supply. So are sharing economies just an ideal? Is there any sharing economy that has sustained over time? Well there is, but you might not be aware of it…
By Eliad Shmuel.
The magazine Fast Company recently published an article with the provocative title: “Can The Sharing Economy End Discrimination?” The author, David Mandell, is CEO of the office sharing marketplace PivotDesk and promoter of a new trend now everybody talks about: the sharing economy. Like David Mandell, many believe that millennials choose access over ownership, and that services such as Airbnb and Uber are democratizing the hospitality and private transportation business. This is because, rather than relying on corporate power, branding and expensive marketing, users determine themselves, through ratings, whether they like and thus recommend certain service providers or not. Likewise, providers, e.g. of Airbnb apartments, choose users based on their ratings. Ratings and reviews may vary, but on average, according to Mandell, they provide fair and objective feedback. Each participant of the sharing economy has thus equal chances of becoming popular among others – no matter what educational or social background, what race, religion, gender or sexual preference. But is that really so?