Editor-in-Chief of Arts/New waves

Shared economies continue to be a premature concept, the side effects of excess resources, the enormous insufficiencies of weak monitoring, and the bias of shared concepts is a major constraint to industrial development.

Visiting writer for new waves

From the P2P platform, the frequency of trenchings, drips with winds, to the sharing of single carofo to prepare an insolvency reorganization programme, presupposes the sharing of economic tyranny.

How can the searchers of shared economies not forget the “sharing” mindsets, clearly monitor responsibilities and create a shared economic spring?

The sharing of single vehicles, based on “the last kilometre out”, is undergoing large-scale retreats after the huge competition in capital-taking markets, and the mismanagement resulting from the overloading of existing vehicles is all the more striking (see figure 1).

As of June 2017, the number of daily orders for Mosul andofo exceeded 20,000, the rate of destruction was not less than 20 per cent, while the collapse of the second graduary showed that there was no return of user deposits. In July 2017, the first bunker in the case of single-stage insolvency was reported in Hiroshima, where the company account was left with a balance of only $350,000 and was not able to repay debts of up to $54.4 million.

Not only is it sharing a single vehicle, but the shared economy is continuing in other areas. The Internet finance industry has been a leader who has been running a platform for many hundreds of billions of money-trading funds over the years of Internet lending platforms aimed at linking financial needs.

According to the Internet Loan House, as many as 296 P2P platforms were put on hold in the first half of 2018, and in July it was the first time that no new platform had been created. Distance drop-outs, the largest globally shared service provider, have started to be a cause of concern in two cases of vandalism over the past half years.

In this context, we may ask what makes the shared economy “live”?

Vision, multi-stakeholders

In 1978, Ferson, a American socialist, introduced the term shared economy, but until recent years it was truly popular by the impact of mobile Internet technology development and the transformation of economic structures.

The share of the economy in the first half of 2017 became thermal wind, with capital inflows reaching a total of CI$ 104.33 billion (see figure 2). On the one hand, under the influence of long-end theory, the demand for a large number of fragmented, divisive clients in the market is being valued, and the Internet gives consumers an increasingly rich choice space.

On the other hand, material resources are becoming increasingly abundant and largely underutilized. According to the China Association of Old Cargo Industries, the total number of uninactive items in the country currently stands at over 50,000 million per year, growing at a rate of 5 per cent. As markets become more open, the language of idle resources is expanding: in addition to idle goods and space, idle finance, information, and even skills are considered as idle resources.

Various Internet platforms, driven by a plethora of factors of excellence, with shared economies as the mainstay of the market, combine supply and demand through models, achieve a rapid matching of demand and resources and use economies of scale to significantly reduce marginal costs (e.g., figure 3).

In commercial practice, the shared economy has been largely divided into two major categories: the C2C model applicable to heavy assets, such as drips, Airbnb, and the B2C model, which favours light assets, such as motorcycles, shared recharges.

Breaking risks and creating new springs

Shared economies have been produced to improve resource efficiency. However, in trying to address this grief, shared business models reveal deeper problems.

First, the issue of resource efficiency has not been effectively addressed, but rather because of the overstretch of resources. The B2C business performed the most aggressively, and the sharing of projects on the market was not overstretched: from single vehicles, refrigerants to the rain umbrella, laundry machines. Resource overload is a prerequisite for the emergence of shared economies; however, there is currently not only a surplus in the sharing of resources per se, but also a more serious waste resulting from the massive occupation of public spaces in society. The C2C enterprise, on the other hand, has a prominent “Airbnb” effect on the efficiency of the functioning of the resources of society as a whole. A study by the United States Department of Economic Research found that the number of rents in Airbnb was 10 per cent higher, leading to an increase of 0.39 per cent in rents and an increase of 0.64 per cent in home sales. In other words, the sharing of the economy is moving far away from primary care in terms of resource efficiency.

Second, the supply- and demand-sharing model has inherent systemic risks. Unfamilial resource providers pose the most fundamental risk to the shared economy, and many shared economic platforms have been committed to creating social marketing scenarios in order to overcome the mistrust created by their birth, while Airbnb was in the “OneLess Stranger” (the “Reducing the world’s stranger) campaign with a view to weakening the concept of “strangers”, eliminating user psychological barriers and building confidence. As is the case of dividing passers, it seems to be difficult to avoid the risk of this resource-sharing in a sense of subversion through socialization.

Thirdly, there is a high demand for a more diversified and synergistic functioning. At this stage, the platform overemphasizes its technical attributes, often circumvents regulatory responsibilities by middle-level gestures, while the supervisors are overly inclusive because of the lack of data interoperability and the lack of basic awareness among the public in demand of the purpose behind the capital operation of the platform’s economy. It is difficult to find from the operating model that the sharing of economic, cross-sectoral, cross-regional, networked features introduces new requirements for existing regulatory models, and that their good functioning requires multi-stakeholder governance.

Shared economies thrive in technology, but they must not remain in technology. Disorders can be attributed, on the one hand, to the fact that the current society does not establish an order suitable for the shared economy, to social factors such as interpersonal relations, and to the fact that the shared ecology is not mature; on the other hand, many shared platforms do not assume the responsibility of the pilots, not only do the economic benefits of evading their responsibilities, pockets of inaction leave enormous jeopardy, but will ultimately put the newly born shared economy under considerable developmental pressure.

Shared economies continue to be premature in the current context