Podcast
Questions and Answers
What is a major concern for firms regarding their workers in the sharing economy?
What is a major concern for firms regarding their workers in the sharing economy?
Firms in the sharing economy face no uncertainty regarding their employee classifications.
Firms in the sharing economy face no uncertainty regarding their employee classifications.
False
What technology does WePay use to combat fraud?
What technology does WePay use to combat fraud?
Veda fraud-fighting technology
Some sharing economy firms offer service providers additional coverage and __________ guarantees.
Some sharing economy firms offer service providers additional coverage and __________ guarantees.
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Match the following concepts with their descriptions:
Match the following concepts with their descriptions:
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Which of the following is a potential benefit of collaborative consumption for traditional industry players?
Which of the following is a potential benefit of collaborative consumption for traditional industry players?
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WePay simplifies the process of adding payment capabilities to websites.
WePay simplifies the process of adding payment capabilities to websites.
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What issue has gained attention from state and federal agencies in relation to the sharing economy?
What issue has gained attention from state and federal agencies in relation to the sharing economy?
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Which of the following companies is primarily associated with collaborative consumption in the domain of transportation?
Which of the following companies is primarily associated with collaborative consumption in the domain of transportation?
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Airbnb is an example of a firm operating in the goods category of the sharing economy.
Airbnb is an example of a firm operating in the goods category of the sharing economy.
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Name one platform that allows individuals to crowdsource funding for projects.
Name one platform that allows individuals to crowdsource funding for projects.
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Companies like Uber and Lyft facilitate __________ consumption by allowing drivers to offer their vehicles for rides.
Companies like Uber and Lyft facilitate __________ consumption by allowing drivers to offer their vehicles for rides.
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What type of services can be provided by platforms like TaskRabbit?
What type of services can be provided by platforms like TaskRabbit?
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Match the following companies with their primary service or product:
Match the following companies with their primary service or product:
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Collaborative consumption relies solely on firm-owned inventory for its services.
Collaborative consumption relies solely on firm-owned inventory for its services.
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What term describes individuals who provide personal services, such as driving or meal preparation, in the sharing economy?
What term describes individuals who provide personal services, such as driving or meal preparation, in the sharing economy?
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What has been a major factor contributing to the rise of the sharing economy?
What has been a major factor contributing to the rise of the sharing economy?
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Airbnb owns all the properties listed on its platform.
Airbnb owns all the properties listed on its platform.
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Name two platforms involved in peer-to-peer lending.
Name two platforms involved in peer-to-peer lending.
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Uber and Lyft are examples of -to- transportation services.
Uber and Lyft are examples of -to- transportation services.
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Match the following services with their respective categories:
Match the following services with their respective categories:
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How do social media platforms contribute to the sharing economy?
How do social media platforms contribute to the sharing economy?
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Audit trails can enhance trust in sharing economy services.
Audit trails can enhance trust in sharing economy services.
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What is a common concern users have regarding the sharing economy?
What is a common concern users have regarding the sharing economy?
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Which established player has NOT invested in a ride-sharing service according to the partnerships listed?
Which established player has NOT invested in a ride-sharing service according to the partnerships listed?
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Airbnb guarantees hosts $1 million if something goes wrong during a guest's stay.
Airbnb guarantees hosts $1 million if something goes wrong during a guest's stay.
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How many countries have Airbnb listings available?
How many countries have Airbnb listings available?
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Airbnb listings include unique properties such as __________ and tree houses.
Airbnb listings include unique properties such as __________ and tree houses.
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Match the following companies with their respective partnerships or acquisitions:
Match the following companies with their respective partnerships or acquisitions:
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What is a major challenge Airbnb faces in many operating areas?
What is a major challenge Airbnb faces in many operating areas?
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Every guest using Airbnb remains anonymous during their stay.
Every guest using Airbnb remains anonymous during their stay.
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What does Airbnb monitor at a deep level to prevent scams?
What does Airbnb monitor at a deep level to prevent scams?
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What is one of the key reasons Uber drivers prefer Uber over traditional taxi drivers?
What is one of the key reasons Uber drivers prefer Uber over traditional taxi drivers?
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Uber eliminates surge pricing to maintain customer satisfaction.
Uber eliminates surge pricing to maintain customer satisfaction.
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What is 'product-market fit'?
What is 'product-market fit'?
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Uber claims to create over __________ new jobs a month, nearly all are drivers.
Uber claims to create over __________ new jobs a month, nearly all are drivers.
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Match the following Uber features with their descriptions:
Match the following Uber features with their descriptions:
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What issue has contributed to negative perceptions of Uber's corporate culture?
What issue has contributed to negative perceptions of Uber's corporate culture?
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HomeAway is an example of competition specifically against Uber.
HomeAway is an example of competition specifically against Uber.
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How does Uber handle its payment transactions?
How does Uber handle its payment transactions?
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What unethical behavior was Lyft accusing Uber of?
What unethical behavior was Lyft accusing Uber of?
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Uber was hacked, resulting in the exposure of personal data of 57 million users.
Uber was hacked, resulting in the exposure of personal data of 57 million users.
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What technology is Uber exploring to strengthen driver verification?
What technology is Uber exploring to strengthen driver verification?
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Uber employs mathematicians with PhDs in _____, astrophysics, and computational biology.
Uber employs mathematicians with PhDs in _____, astrophysics, and computational biology.
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Match the following Uber initiatives with their descriptions:
Match the following Uber initiatives with their descriptions:
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Which of the following best describes the 'God View' system used by Uber?
Which of the following best describes the 'God View' system used by Uber?
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Network effects help attract customers to Uber, even if they may prefer to leave.
Network effects help attract customers to Uber, even if they may prefer to leave.
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What kind of professionals does Uber employ to assist with data analysis?
What kind of professionals does Uber employ to assist with data analysis?
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Study Notes
The Sharing Economy, Collaborative Consumption, and Efficient Markets through Tech
- The sharing economy and collaborative consumption are facilitated by technology.
- Technology improves reach and efficiency compared to traditional markets.
- "Citizen suppliers" and product owners participate as rental providers.
- Examples include Airbnb for rooms, Turo for cars, Boatsetters for boats, Uber/Lyft for rides, Rover for pet-sitting, Feastly for meal prep, and Care.com/Angie's List/Handy for home services.
- Some firms buy inventory and rent it out (e.g., Rent the Runway, Zipcar, Chegg).
- These products are "collaboratively consumed."
- An individual uses an item temporarily, then returns it to others.
Learning Objectives (Section 11.1)
- Identify firms in the sharing economy and collaborative consumption.
- Evaluate the market size, impact, investment, and valuation of these sectors.
Introduction
- Technology connects diverse providers and consumers effectively.
- It creates a wider reach than traditional markets.
- Individuals contribute as suppliers ("citizen suppliers").
- Existing product owners become rental providers.
Introduction (continued)
- Some companies buy inventory for rental.
- Products like dresses, cars, and textbooks are examples of collaboratively consumed items.
- Individuals possess an item temporarily, then return it for use by others.
- Consumers can collaborate on financing projects(e.g., Kickstarter, GoFundMe, LendingClub).
Examples of Firms in the Sharing Economy
- Goods: Pre-owned items (eBay, Craigslist), Loaner products (Zilok), Customized products (Etsy, CustomMade).
- Services: Professional services (Upwork, crowdSPRING), Personal services (Angie's List, Handy, TaskRabbit), Delivery services (DoorDash, Grubhub, Instacart), and others.
Examples of Firms in the Sharing Economy (continued)
- Transportation: Rideshare services(Uber, Lyft, Didi), Loaner vehicles (Turo, Zipcar).
- Places to Stay: Office space (LiquidSpace, ShareDesk), Vacation rentals (Airbnb, HomeAway, Couchsurfing).
- Money and Finance: Peer-to-peer lending (LendingClub, Kiva, Prosper), Crowdfunding (Kickstarter, GoFundMe, Indiegogo).
Learning Objectives (Section 11.2)
- Identify factors contributing to the rise of the sharing economy.
- Comprehend competitive factors influencing marketplaces supporting collaborative consumption.
Factors Fueling the Rise of Collaborative Consumption
- Economic recessions often trigger growth in the sharing economy.
- Stagnant wages lead to a search for affordable alternatives.
- Individuals are increasingly willing to offer services for hire.
- Environmental benefits of reuse and reduced consumption contribute to the appeal
Winning in Electronic Markets
- Early platforms gain scale, brand recognition, and financial resources.
- Technology allows peer-to-peer supply without inventory ownership.
- Platforms like Airbnb and Uber benefit from this model.
- Certain services prioritize quality by controlling inventory (e.g., Rent the Runway).
- Marketplaces improve the supply chain by connecting suppliers and customers.
Social Media and Trust
- Word of mouth through social media strengthens the sharing economy.
- Social proof is a powerful driver for new customer acquisition.
- Trust and safety concerns (e.g., audits, ratings) are important for success.
Challenges of Safety and Regulation
- Firm safety concerns do not equate to a lack of safety issues.
- Insurance and liability issues arise due to sharing economy participants.
- Insurance is often considered a significant safety concern.
- Local tax exemptions and regulatory fees impact this sector.
- Competition raises concerns in some locations.
Challenges of Safety (continued)
- Uncertainty about classifying workers as independent contractors or employees.
- Workplace protections may not exist for independent contractors(minimum wage, overtime compensation, unemployment/workers' compensation).
- Legal action and agency involvement are possible outcomes of these concerns.
WePay's Success
- WePay provides simple payment solutions.
- The firm targets buyer/seller platform operator challenges.
- Its fraud-fighting technology, transaction history, and machine learning improve fraud models.
- WePay's payment solutions are easily integrated, similar to embedding a YouTube video.
Learning Objectives (Section 11.3)
- Identify large firms investing in, partnering with, and building collaborative consumption efforts.
- Learn the advantages of these firms for traditional industry players.
Future Outlook: Established Players Enter the Sharing Economy
- Major corporations are investing in the sharing economy(e.g., Alphabet & Toyota invested in Uber).
- Major players are partnering to utilize benefits.
Learning Objectives (Section 11.4)
- Analyze Airbnb's success in a multi-billion dollar sharing economy.
- Understand the appeal of Airbnb to suppliers and consumers.
- Identify the challenges for Airbnb as it grows.
- Discuss the firm's ability to foster trust in a sensitive area (private home rentals).
Airbnb's Success
- Over two hundred million guests have used the platform.
- The platform has extensive worldwide reach, operating in over eighty thousand locations across nearly two hundred countries.
- Unique accommodations are a part of the appeal. (e.g., castles, treehouses)
Airbnb's Trust Building Strategies
- Essential trust and verified guest/host identity verification (two-step).
- Offer secure payment methods and 24/7 support.
- Thorough transaction and communication monitoring.
Challenges for Airbnb
- In some areas, businesses do not comply with zoning regulations or health/safety laws.
- Homesharing and traditional hotel firms represent substantial competition.
- Booking.com and similar sites add Airbnb as a competitive option.
Learning Objectives (Section 11.5)
- Understand Uber's appeal to drivers and consumers.
- Evaluate how Uber uses technology to improve services and cost.
- Analyze the impact of executive decisions and corporate culture on the firm.
- Consider how technology shapes Uber's competitive advantage.
Uber's Appeal and Services
- Uber offers convenient ride-hailing through a smartphone app.
- Pricing is set via the app, and the platform handles payments.
- Drivers benefit from flexibility and potential higher pay rates.
Uber's Business Model
- Lean cost structure, as vehicles are owned by drivers, not the company.
- Customer feedback continually evaluates and improves driver quality.
- Surge pricing adjusts based on supply and demand.
Uber's Challenges and Growth Concerns
- Uber faces competition through strong rivals like Lyft.
- Uber has had significant financial losses in certain periods.
- The firm has made considerable investments in areas that have not proven substantial.
- Past hiring practices have negatively affected the firm's future potential job prospects.
Technology and Safety for Uber
- Uber uses technology to increase safety via real-time driver/passenger tracking, and verification.
- Data is used for safety and dynamic pricing.
Uber's Data-Driven Operations
- Uber's staff comprises PhD holders in scientific fields.
- The "God View" system tracks and analyzes data to understand demand and adjust pricing.
- Data-driven analytics allow price adjustments based on real-time factors.
Uber's Platform Expansion through APIs
- Uber builds its platform by offering application programming interfaces.
- The platform expands into other applications.
- Existing services (like airlines, hotels) integrate further into the service.
Opportunities for Uber
- Expanding into different varieties of logistics.
- Bike delivery, self-driving cars, and other technologies.
Concerns for Uber
- The extensive growth of the firm is threatened by regulatory concerns.
- Firm quality and service and sustaining international expansion are also issues.
Additional Note
- Joby has listed on the New York Stock Exchange three years prior.
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Description
Test your knowledge on major concerns and technologies in the sharing economy. This quiz covers topics from classification of workers to firms like WePay and platforms like Airbnb. Challenge yourself with various concepts related to collaborative consumption and its impact on traditional industries.
