Sharing economy is currently one of the most popular business directions. Participation in these ventures enables individuals to earn money from products and services that remain unused. Such business models are organized around technology platforms linking a seller directly with a customer and facilitating the exchange of products, services and assets between them.
Social media and e-commerce experts from Effective Soft report that a sharing business and social networks, the two different and heterogeneous fields, are now in the process of integration with each other. We work with customers from all over the world that are involved in the domains mentioned above and we can see that these directions are now rapidly approaching each other. We will discuss why this process has started below.
How can a new business benefit from sharing economy?
Owners of sharing economy platforms act as intermediaries between sellers and purchasers. As a rule, they do not dictate prices to sellers, but not when it comes to such platforms as Uber, Handy or Lyft. The platforms usually include rating systems that assist potential customers in checking a quality of products and services a seller offers.
A focus on searching for sources and customers in social media is a solution for such businesses
With most users of sharing economy being also savvy users of social media, it is apparent that social media and sharing economy are meant for each other. Organized in a form of a social media platform and with a real name policy being applied, a sharing economy business gives its participants access to reliable information on each seller and customer. The users can also leave comments and contact each other directly by using the platform.
What are the problems that a new business in the sharing economy space has to deal with?
There are a number of hurdles sharing economy companies have to face.
Firstly, regulatory issues requiring a one-size-fits-all IT solution and provision of simple payment solutions form other essential problems. Customer protection and training of web solution’s users are also important uses platform owners address.
Also, competition in this P2P marketplace is becoming increasingly tough: the meteoric rise of the sharing economy has attracted many companies willing to reap benefits this business model offers, and new players continue to join the race. Fierce competition for customers and sharing resources forces business owners to search for customers as well as resources in social media networks since the latter ones represent the most cost-effective advertising platforms.
Social media platforms will enable business owners to find owners of products and services and potential customers easily. Besides, these sellers and customers can be brought together by using a professional IT solution.
The social networking phenomenon determined the remarkable success of such startups as B&B, Uber, and more.
Experts from EffectiveSoft believe that a sharing economy model can be profitable for companies planning to join this business. A success can be achieved via integrating sharing economy with custom social network software. Companies can organize their business using existing social network platforms by customizing them by IT solutions or ask developers to create social media platforms initially tailored for all their needs.
In conclusion, the convergence of sharing economy businesses and social media platforms is becoming increasingly evident and beneficial for both sectors. Sharing economy platforms benefit from the wealth of user information and communication tools provided by social networks, allowing for increased trust and efficient transactions. However, these businesses also face challenges related to regulations, customer protection, and fierce competition. Leveraging social media networks for customer acquisition and resource sharing has become essential in this rapidly growing market. The integration of sharing economy models with customized social network software offers a promising path for companies aiming to thrive in this evolving landscape, providing opportunities for success and growth.