Sharing economy- the backstory
In 2012, 17-year old Briella Brown started a business in Australia called Your Closet, where ladies could hire designer dresses and accessories for events.
Her business logic was simple: why bother getting a new expensive dress for every event when you can simply hire one for a much smaller fee when you need it? So for instance, you can rent a Camilla and Marc Daub Midi Dress for around $99 for four days instead of spending $500 to purchase at retail price, considering you might wear this dress only once or twice. Smart, but this idea is hardly novel. In fact, Yeechoo in Hong Kong, Chic by Choice in the UK, and Rent the Runway in the USA all have similar business models.
The idea of accessing goods and services through 'hire for a small fee' rather than spending so much money to actually buy them is now a global practice, and it is more than hiring dresses.
These days you can rent household appliances, camping equipment, music, books, and someone to do your tasks for a little fee. Global brands like Uber and airbnb which allow consumers to rent a ride and a bed respectively are some of the big players in what is now popularly called the Sharing Economy.
According to estimates by PricewaterhouseCoopers (PwC), the sharing economy generated global revenues of $14 billion in 2014; this is projected to reach more than $300 billion in 2025. For further information, See Also for a link to the report.
Have you been a consumer of the sharing economy?
Take our Poll and tell us the share economy service you have used the most. Check out the results of the poll to help identify the biggest players in this space.
© RMIT University 2017