With 2016 just starting, there is no surprise that the sharing economy is still continuing to grow. In a recent article from the University of Pennsylvania research has shown Companies such as Airbnb, Uber and DogVacay have succeeded far beyond expectations. Businesses are using these companies as a model to mold theirs in hopes to be just as successful.

Back in 2008 when Airbnb was first founded, it raised a lot of questions and many actually thought the market was too small. Unfortunately for those who turned down the funding, Airbnb took off by 2009 and never looked back. Airbnb is ranked one of the highest among the sharing economy and helps contribute to the $25.5 billion estimated as a whole.  

While the sharing economy has changed the way we do business, there is no surprise that venture funds and big corporations have looked to participate rather than try to fight it.

“The average total funding per startup has been $94.8 billion.”

Businesses actually see the sharing economy working in their favor. With the average person listing rooms, car rides, or selling an item rather than a business carrying inventory and overhead, it keeps the costs down for them. It is a lower risk with high return for the business.

One more critical aspect of the sharing economy is the user experience. As the peer-to-peer services are continuing to be used, it is valuable that the customers have a positive outcome or review. Word of mouth and online reviews are critical for the success of a business in the sharing economy.

“Despite all the resistance, virtually no one thinks the sharing economy is going anywhere but up.”

The sharing economy is far from perfect, as shown in recent incidents with Uber and Airbnb. While companies like these are still fairly new (last 10 years), it is hard to see any huge dips coming anytime soon. As long as there is a demand, there will be the supply.

Read the source here