2.1. Introduction

The concept of a sharing economy is becoming increasingly important and is being finely integrated into societies. Although not explicitly used, it is implicitly practiced because it is based on social relations and religious ethics in most cases.

The new production method that characterizes sharing is independent of the price that has governed business transactions to date. It is more efficient than price-based and government-funded systems (Benkler 2004). The success of sharing practices is attributed to the fact that they are carried out between individuals who are unrelated (in other words, individuals who do not know each other), but who still form an effective large-scale exchange system (Benkler 2004).

As far as the sharing economy is considered an economic model, what will be the implications of this economy? The scientific debate on the implications of the shared economy is based on issues such as new business models, new challenges in the tax system, changing production models, productivity growth and labor market changes (Grifoni et al. 2018).

In response to this interpellation, it can be said that the consequences of the sharing economy are related to social, economic and technological aspects. The sharing economy potential can be a factor in socio-economic development. Indeed:

[The sharing economy] also plays an important role, because after several decades of disappointing economic growth and unemployment for hundreds of millions of people, consumers are looking for the lowest possible costs, which the sharing economy enables, and as a result, the number of people willing to participate as suppliers is increasing.

Furthermore, technological advances have played a crucial role in supporting the development of sharing platforms, payment processing and have also provided all parties with sufficient knowledge to carry out transactions. (Institut d’assurance 2017)

The sharing economy already enjoys a good reputation among American consumers. A survey conducted by PwC¹ states that 89% of them believe that it is based on trust between the participants in the exchange. About 83% believe that it makes life easier. About 76% believe that it contributes to protecting the environment. About 78% believe that it strengthens the cohesion and strength of the community. And finally, 63% say that collaboration in this economy is more pleasant than with companies (PwC 2015).

In general, a sharing economy approach reduces the ecological footprint and waste of the urban population, allowing them to save money. It also represents chances for job creation and business opportunities. It helps to strengthen and encourage social cohesion, social capital and innovation. It also helps to reduce the cost of education and research (Cooper and Timmer 2015).

The relevance of the sharing economy lies in the opportunities it offers, without however being free of potential risks.

So, what are these opportunities that are likely to appeal to the business world in particular?

2.2. Prosumption: a new sharing economy trend for the consumer

While the sharing economy has established itself for some people, it is because it has emerged in the right context. Economic and financial crises, unemployment and environmental degradation are all factors that support the adoption of this new philosophy. Individuals have become inventive in order to escape the difficult socio-economic situation, and today’s consumer is no longer the consumer we knew. This is to such an extent that it is worth wondering whether or not this is the end of consumerism.

It cannot be affirmed that the sharing economy revolutionizes consumer habits and upsets manufacturers. The “prosumer” phenomenon illustrates the willingness of individuals to shake up consumer habits:

Sharing practices, whether they are commercial or not, make it possible to give a second life to many goods, sharing their use. By promoting use on ownership, these practices have a very high potential for sustainability. (Courtois 2016)

The consumer is no longer indeterminate in the producer-consumer relationship:

The rise of new technologies gives him the tools for increased vigilance. It also helps him become a producer of that which he uses in order to become a prosumer. (Van de Walle et al. 2012)

What is a prosumer?

The term “prosumer” combines the words “producer” and “consumer”.

Historically speaking, it was first used in 1980 in Alvin Toffler’s work The Third Wave. For Toffler, the two functions of production and consumption were not separate, it was the industrial company that created a divide between them (Goyette-Côté 2013). In this context, Ritzer and Jurgenson (2010) argue that production and consumption have always dominated economies (capitalist and non-capitalist). According to both authors, prosumption involves both production and consumption, rather than focusing on one or the other. Although prosumption has always been predominant, “a series of recent social changes, particularly those related to the Internet and the web, have further centralized it”.

For potential consumers, the evolution of this concept represents a perspective and an opportunity to express their opinions and update their preferences. Several researchers have studied this growing phenomenon. Ritzer and Jurgenson (2010) report that:

It is only recently that prosumption has become an important subject in the literature. Prahalad and Ramaswamy (2004) describe this trend as ‘co-creation of value’.

Tapscott and Williams (2006) consider the prosumer as part of the new Wikinomic³ model, where companies put consumers to work.

In his book Cult of the Amateur, Andrew Keen (2007) opposes this idea and criticizes this model, as well as any thought process that promotes consumer dependence on the producer. However, Beer and Burrows (2007) see new relationships between production and consumption emerging, particularly on the web.

2.3. Poverty: a target in the spotlight of the shared economy

The shared economy is a way to boost the economy, especially in times of crisis. Rooted in the principles of sustainable development, it aspires to participate in the objectives of the third millennium, particularly with regard to poverty and inequality between populations.

So how can it be a means of pressure to shape a new economic model?

The shared economy represents an opportunity for society by having the capacity to reduce poverty and therefore inequalities. Before considering an answer or answers to this question, it should be noted that the relationship between the poor or precarious population and the initiatives offered by digital platforms, within the framework of the sharing economy, is not the same as that of the wealthiest class of society.

Wouldn’t using the shared economy “risk a bias between public policies, based on collective reliability and social action that is highly linked to charitable practices”? (King Baudouin Foundation⁴ 2016). The study of King Baudouin’s foundation showed that the insecure population does not have access to the range of offers that fall within the scope of the sharing economy, in particular that of the business model, since it is not free. Furthermore, the activities of the sharing economy are carried out with digital tools that cost a significant amount. In addition, this segment of society feels inferior with regard to their inability to benefit from this kind of sharing.

The objective of the sharing economy is to create an egalitarian society through exchange platforms. These must guarantee access for all and at a lower cost for the duration of time for which it is needed, such as a car in town, tools, housing and many other goods that would otherwise be very expensive if they were acquired through the classical economy (Pasquier and Daudigeos 2016).

By definition, poverty is a person’s inability to satisfy his or her most basic needs: food, shelter, clothing, education, health, possession of comfort goods (car, travel, etc.).

In light of this definition, one wonders what a population living in poverty can share if it does not have the essentials to meet its most basic needs. Will access to platforms be enough to restore a sense of social reintegration to people that are living in modest circumstances?

Indeed, it is necessary to have an asset base in order to be able to perform any exchanges:

In this perspective, economic capital would be measured more in terms of access to property, than in terms of heritage. This new relationship with goods is therefore supposed to create a tremendous leverage effect for the poorest populations: what could not be bought yesterday because of a lack of resources can be borrowed or rented the next day at reasonable rates. (Pasquier and Daudigeos 2016)

Also, a study by Williams and Windebank (2005) showed that people of modest circumstances express negative feelings of social exclusion in relation to second-hand purchases.

Paradoxically, they are simultaneously driven by “positive feelings of agency power over purchasing decisions, because second-hand purchases sometimes remain preferable to donations, loans or non-purchases” (Benoît-Moreau et al. 2017). In practice, this means that collaborative platforms offer people with opportunities to acquire goods and feel reintegrated into society through the collaborative economy niche.

But ideas that advocate the reliability of the sharing economy to institute equality for all are not shared by everyone. The literature on this issue is divided between those who support the idea that digital platforms contribute to social integration, and those who consider them to be reserved for a wealthy population.

A study in 2016, by Benoît-Moreau, Delacroix and Parguel, on the economic benefits brought by purchase-sale practices on collaborative platforms, which integrated the “psychosocial benefits”⁵ variant for the first time and was associated with the economic benefits gained, revealed that the economic benefits increase when purchase and sale transactions are practiced on the platforms (they allow them to make gains on their budgets and close the month-end).

In contrast, from a psychological point of view, this activity does not provide any satisfaction for people in financial difficulty. Instead, it reinforces the feeling of social exclusion because it is perceived as a “stigmatizing constraint”. The only psychological satisfaction is that of making a financial gain (Benoît-Moreau 2017).

Without claiming to be utopian, collaborative platforms offer economic opportunities for a section of the population that are in financial difficulty. They give that section of the population a sense of satisfaction by allowing them to perform the act of buying with dignity, instead of begging or getting into debt.

2.4. Controversies on economic opportunities of the sharing economy

The sharing economy is a growing phenomenon. Thus, the turnover of sharing platforms is growing rapidly, “the revenues generated by all these players in the European Union have increased from 1 billion dollars in 2013 to 3.6 billion dollars in 2015” (Winkler 2017).

While the sharing economy provides profits, it also causes disproportionate effects in society, particularly in regard to employment disruptions. It promotes self-employment, commonly known as freelance.

This new approach to job searching will fundamentally change labor market regulation:

Activity is rarely regulated by an employment contract. Self-employed workers generally do not benefit from any form of social protection (unemployment, health or retirement) and are therefore, with age or in the event of a turnaround in the economy, faced with an increased risk of poverty. (Winkler 2017)

Opinions regarding the reliability of the sharing economy as an economic model that can meet the social objectives of sustainable development, particularly those that expect the decrease in poverty and inequality in the world, as stated above, are somewhat harsh. We cannot be categorical about a possible need to increase social inequalities, on the one hand, because the sharing and collaborative economy is a recent concept under construction. On the other hand, the implications of using trading platforms has to be analyzed with greater optimism.

Indeed, in the context of trading platforms, pilot projects, which have a purpose of reducing inequalities, have helped to strengthen social cohesion. Projects such as Soli-Food and Welfood, for example, reflect this desire by providing a vulnerable population with access to food under the aegis of the fight against waste (King Baudouin Foundation 2016).

The change brought about by the collaborative economy does not affect the nature of the goods consumed, but rather the behavior of consumers, in other words, their way of consuming, either through the B2C or B2B formula. Previous exchanges are now complemented by the emerging C2C formula, but also by other transactional methods that contribute to a more efficient flow of goods in the market.

Although a number of these exchanges involve new goods (B2B, B2C, B2G, G2B, G2C or G2G), others are only associated with second-hand goods (C2B, C2C, C2G). It is worth noting that C2C exchange schemes can be found in each exchange configuration, making it a dominant factor.

In fact, taking marketing into account inevitably implies taking C2C systems into account, because they fill the blind spots that marketers generally pay little or no attention to (C2B, C2C, C2G) (Ertz 2017).

In the context of the collaborative economy, there is an overlap between production and consumption functions, in such a way that roles between individuals have reversed. “Exchanges between individuals are brought to the forefront, while organizations act as intermediaries” (Ertz 2017).

As a result, the consumer is no longer a mere spectator, but rather an essential player in the business-consumer relationship. He can even do without the company by producing and marketing goods and services.

Basically, the economic model of sharing is essentially based on the “consumer-to-consumer” (C2C) formula. The platforms have served as intermediaries between individuals (Buda and Lehota 2017).

Based on this operating logic, the relations between producer, consumer and government have been redefined and have revealed the new exchange methods discussed above. Collaborative consumption embodies the change that has led economic networks to move towards a more local and collective organization, similar to an ecosystem, guided by new patterns of exchange (Ertz et al. 2017).

By freeing the sharing economy, will companies be able to transform today’s threat into tomorrow’s opportunity?

So many issues call on business leaders to be players in this new economic model, not just bystanders suffering the consequences of this change. The answer to these issues is suggested by the honeycomb representation of the collaborative economy. It was developed by Jeremiah Owyang (founder of Catalyst Companies, industry analyst). It outlines the scope of the sharing economy in the different sectors of the economy.

The illustration in the form of a honeycomb structure is not accidental, explains the designer: “The cells are elastic structures that allow the accessing, sharing and improving of resources in a group” (Torfs 2016b).

The representation is evolutionary, interpreting the change in strategies in companies. Currently, we are on its third version, the first version only had six honeycombs in the center of the graph. Several companies have joined the sharing economy movement and the list of sectors that have integrated the sharing economy into their strategies includes “the finance, logistics, food and transport sectors” (Hallet 2018).

On the third version, Owyang argues that the collaborative economy allows people to get what they need from each other. Similarly, in nature, honeycombs are resilient structures that allow access, sharing and growth of resources within a common group:

Our latest version of the Honeycomb Framework, Honeycomb 3.0, shows how the collaborative economy market has grown to include new applications in the areas of reputation and data, worker assistance, mobility services and beauty. (Owyang 2016)

The collaborative economy is no longer a simple fashion phenomenon, nor is it the apanage of some companies. However, the transition from a traditional to a sharing economy requires a review of all the issues. The French Chamber of Commerce and Industry (CCI 2014) suggests that companies consider the following points:

• – The company must be interested in the stakeholders influencing its internal activity, in other words, suppliers, customers, investors and partners. For example, to improve its relationship with its customers, the company creates a customer club to facilitate the exchange of its used products. At first glance, it will sell less, so what would it gain by creating this club? In the long term, “positive external factors would compensate for the risks” (CCI 2014) and the company would win the loyalty of these customers.
• – It must find an alternative to its business model⁶ in regard to the challenges of the collaborative economy. In this case, the company opts for a gradual change in its activity, as opposed to an abrupt one. It integrates social elements “on a small scale, by creating an agile ad hoc structure (in lean start-up mode) in order to experiment with more open models” (see Box 2.5).
• – The company must intercept a part of the clients from start-ups that are engaged in collaborative economy practices. Companies in the “traditional economy” have underutilized capacities and assets to mobilize a shared or collaborative approach: “It can be a customer base, a local presence, a network of business partners, exclusive suppliers or patented technology.”

These initiatives allow companies wishing to transition to the sharing economy to gradually integrate this new economic model into their strategy. They can choose one initiative or the other according to the capacity of its resources (human and financial) and remain alert for all changes affecting its sector of activity.

2.5. Conclusion

The sharing economy is gaining more and more ground, and this is not a “whim” in the business world. It really does exist and provides solutions to many of the problems caused by the traditional economy, which in this case, are those related to social well-being, particularly poverty and social exclusion.

Even if there is some reluctance about the economic consequences of the collaborative economy, an initiative in favor of the collaborative economy is only beneficial for companies, because it opens up opportunities for them to enhance the value of their products and ensure their sustainability. That is why they must not resist: either they surf this new wave of possibility, or they get carried away. It is therefore better to turn these threats into opportunities.

TO REMEMBER.– Opting for an approach in favor of the sharing economy is a great adventure for a company. The protagonists of this new model were motivated by their convictions and desires to contribute to the sustainability of the community, the economy and the environment.

Nevertheless, activities in support of the sharing economy create value and specifically provide employment opportunities. On this last point, those that are “suspicious” of the sharing economy are opposed to the idea that this new economy can preserve and stimulate the world of work.

Can we resolve this dilemma?

Impossible, for the time being. The sharing economy is a topic in full development, only time will confirm or deny the impact of this new economy.