Blog Post 6: The Sharing Economy (Miriam Saguda)
In "What is a Sharing Economy" Ravenelle introduces various definitions past theorists and companies hold of the concept of the sharing economy. Ravenelle highlights it to consist of 'app-based technologies' that facilitate the borrowing of goods and services, in exchange for payment, for the betterment of society or profit. Her work focuses on three central themes: Gemeinschaft/Gesellschaft, increasing casualization of labor and resulting increases in social inequalities.
Whilst other scholars argue that the onset of the sharing economy allows for the reintroduction of Gemeinschaft due to community building and increased trust, Ravenelle posits that users maintain disinterest even when participating in the sharing economy. Her research found were decreased levels of trust. Additionally, she brought in the RelayRides as an example of how relationships in the economy were characterized by anonymity. I partially agree with her view as when users consume such products their general goal is to obtain such goods and services to meet their objectives. It is unlikely that users go the extra mile to interact for community building when the nature of the exchange is transactional. For example, in my experience in Grabcar, whilst there is some level of interaction, such interaction was to facilitate the transaction or to make the experience better. Such interaction did not transfer post-trip and was very limited. Additionally, she posits that the sharing economy reflected and perpetuated existing structures of discrimination online rather than democratize entrepreneurism.
Ravenelle posits that the sharing economy has resulted in the 'casualisation of labour' and its risks. She states that since workers are now 'independent contractors', they are not afforded the benefits like compensation, healthcare insurance or disability accommodations, that traditional workers get. As a result, their work is riddled with risk and uncertainty which lead to increased anxiety amongst such workers. This risk and uncertainty are especially pertinent for middle to lower-income groups as their work in the sharing economy may be their main source of income, unlike the wealthier class who may view it as a 'side hustle'.
Ravenelle also points out that the sharing economy has contributed to the rise of social inequalities. She suggests that it allows the wealthy to get wealthier, at the expense of the middle and lower class. Bringing up the example of Airbnb, she explains how excessive renting of property by the wealthy have resulted in overall prices of rent increasing due to the increase in demand for accommodation. As a result, middle and lower-income households have to pay more for rent. I agree with this point as having access to resources tends to open up more opportunities a person as compared to someone who doesn't have much. For example, people who are more able to sell or donate their goods online are typically the ones who have increased resources that they do not use. Specifically, someone can only rent a portion of their home, or other accomodation if they have the resources to purchase in the first place. In that sense, the wealthier you are, the more likely you can benefit from the sharing economy. As a result, the sharing economy may aggravate class divisions and the ability for people to move across classes.
