The sharing economy reaching its boundaries: What’s Next?

Abstract

Purpose: The paper explores the evolution of the sharing economy, particularly focusing on the growing regulatory constraints and societal pushback. With platforms like Airbnb and Uber at the forefront, the paper investigates how these businesses, which initially thrived in an unregulated environment, are now facing tighter regulations and changing market conditions. It also examines potential future scenarios and strategic adaptations needed for the sharing economy to sustain its performance amid these emerging challenges.

Design/methodology/approach: This article is an opinion piece based on secondary data sources. It analyzes the sharing economy's evolution by reviewing regulatory changes, competitive pressures, and societal responses.

Findings: The sharing economy has reached significant boundaries due to evolving regulatory frameworks and increasing societal pushback. Examples include Barcelona's ban on short-term rentals and the U.S. Department of Labor's reclassification of gig workers. These changes indicate a shift in how these platforms operate, requiring new strategies to adapt to these pressures, such as increased transparency, partnerships with local governments, and environmental sustainability initiatives.

Originality/value: The paper contributes to the ongoing discussion on the future of the sharing economy by highlighting its current boundary conditions, particularly focusing on regulatory developments and societal concerns. It offers unique insights into potential future adaptations and scenarios for platforms to sustain growth, making it relevant for both academics and practitioners interested in platform strategies and regulatory environments.