Sharing Economy: The Famous Circular Economy Solution

In the future where waste is optimally minimized, minimalists take the world.

If you’re a fan of Joshua Fields Millburn and Ryan Nicodemus, you will know that minimalist lifestyle is not an easy thing to attain, but there’s also a certain curiosity in it: how simple and happy life could be – where you could actually reduce the number of waste you produced?

Let’s talk a bit about how the sharing economy is the greatest thing you can practice to support circular economy implementation.

Sharing Economy
Sharing Economy – Source: First Five Years

Minimalists Love to Share Things!

Things that we own could be our liability – something that burdens us with tax, maintenance fee, repair cost, and recycling cost! Some things that we own might only be used several times before we don’t use it anymore – maybe because it’s broken or for the reason that we are bored of it.

One of the ways to reduce waste and to support the circular economy concept is by sharing things. Sharing economy is literally the easiest thing people can do because everyone could do it right now, today, right this second.

The Millenials and Gen Z around the world are starting to get into this kind of lifestyle where life is more flexible with more choices and less liabilities. Renting a workspace instead of buying a building. Ordering a car or ride instead of buying a car.

Taxes, mortgages, and installments become less and less popular: leaving young people to be more liability-free, living only for the moment. Money saving is only to prepare for their retirement phase or emergency fund such as hospital-fee.

The Types of Sharing Economy Business Model

The Netherlands, which is the leading country of circular economy in 2021, has been adopting the sharing economy concept in many sectors. From fashion, ideas, all to transportation, The Netherlands has established many kinds of business with the concept of sharing things. 

When you think about it, there are many ways to build a business based on the sharing economy concept. Not only that you can reduce the use of resources, you could also attract more green investors and build a sustainable circular economy business model.

Here are several sharing economy business model ideas that you need to consider:

  1. Peer-to-Peer Lending (P2P)
  2. Crowdfunding, such as iGrow 
  3. Apartment/House Renting, such as AirBnB
  4. Ridesharing, such as Uber and Grab
  5. Coworking
  6. Reselling and Trading, such as Carousell
  7. On-demand subscription, such as Netflix
Sharing economy Infographic 10 steps concept. coworking, car sharing, Crowdfunding, innovation simple icons
Sharing economy Infographic – Source: Vector Stock

The Pros and Cons of Sharing Economy

The number one advantage of sharing things is saving money, but a bigger positive impact would be how much waste that we can reduce through the sharing economy environment.

The heart of the circular economy concept is to make sure that the resources are used optimally and to keep the materials in a closed-loop as long as we can.

Yes, some of the business models might still be using nonrenewable resources to operate, such as: ridesharing. But through sharing things, we already participate in reducing the number of virgin materials used in the process.

Moreover, the producers/ service providers could also take part actively in maintaining the quality and recycling of the products. So we could form a much stable, monitored recycling process.

To summarize, here are the advantages and disadvantages of sharing economy:

Pros:

  1. Less cost
  2. More access for the people
  3. Monetizing underutilized resources, more income for the providers
  4. More stable recycling process, reducing environmental damages

Cons:

  1. Privacy/ safety concerns, especially during pandemic situation
  2. Fewer guarantees
  3. Independence trade-offs

What do you think about the sharing economy? Let’s talk more about circular economy implementation in Indonesia by registering to the 4th Indonesia Circular Economy Forum that will be held this July 2021.

References:

https://www.moneycrashers.com/sharing-economy/

https://www.neighbor.com/storage-blog/sharing-economy-pioneers/

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