According to results of November RateSetter Sharing Economy Trust Index (RSETI), Australia’s sharing economy is anticipated to reach AU$55 billion over the next five years.

The sharing economy has seen a substantial rise from AU$14.5 billion to over AU$15.1 billion over the past six months, with over 22% percent Australian’s earning more on a sharing economy service.

The concept of “sharing economy” refers to businesses who employ technology to connect with consumers, either in facilitating the buying or selling, or reusing excess capacity in products or services. Thereby, achieving the benefits of low costs and efficiency in processes.

The bi-annual index demonstrates that sharing economy services like ridesharing platforms (Uber), accommodation sharing (Airbnb), crowd-funding platforms (GoFundMe), and buying and selling services (eBay) have seen the most significant growth. 56% of the respondents claimed to have used buying and selling services, followed by ride-sharing at 11% in the past six months. Daniel Foggo, CEO of RateSetter says,

Our research found that trust levels in the sharing economy have increased substantially over the last six months. A lot of the incumbents think that one of their main competitive advantages is trust, but what this is showing is that quite commonly now people trust sharing economy businesses more than traditional institutions and that trend will continue.

Foggo added,

The incumbents need to make sure they focus much more on customers and delivering on value and convenience.

It is also interesting to note that baby boomers are the taking on board the sharing economy trend and are looking for avenues to increase their pre-retirement or retirement income. Foggo adds,

Markets are volatile and interest rates are at all-time lows. Many boomers and pre-retirees are feeling the pinch of lower returns and yields – and they are struggling to make their retirement dreams a reality. That’s where the sharing economy, with its flexible ways of earning and investing, really fits the bill in terms of supplementing their income.

RSETI believes that the sharing economy impacts Australian customers consume services and share surplus resources, and with this purpose releases the report to uncover trends in the sharing economy. The results of the RSETI have demonstrated the growth of this trend. In terms of upcoming businesses, Foggo comments,

Newer entrants are benefitting from the halo effect of established players such as eBay and AirBnB, helping people understand the value and quality of services offered by these platforms as both a buyer and a seller.

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