Essay About Sharing Economy Companies And Uber’S Mission

Responsible Leadership Development
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Responsible Leadership Development (MGMT5590)Final PaperPrahlad Agarwal (20453837)Irresponsibility of “Sharing Economy!Sharing economy is a new economic system developed in 21st century in which assets or services are shared between private individuals, either free or for a fee, typically by means of the internet. The world has hailed this form of economic system as accessible to masses, which makes goods and services affordable. Also, it provides everyone to save resources by sharing the vacant or excess capacity, by matching prospects with suppliers.This sounds great only if it was true!The real fact about sharing economy is that it hides behind the guise of technology and innovation to avoid regulations and operate as just another company. The private individuals are as a matter of fact running a business model on these platforms, and I will explain in detail on that later. By avoiding regulations, the sharing economy is making the world unsafe and unsustainable by its irresponsible leadership. The unicorns of sharing economy in today’s date are Airbnb, Uber and WeWork.Below are some of the sharing economy companies valued over USD1B:[pic 1](Source: VentureBeats)Airbnb[pic 2]An excellent idea to let-out vacant or excess spaces to travellers, where both parties seek to win. However, as per SLEE, Airbnb derives only 1% of revenues from shared listings in New York City and most of its revenues comes from full-time Airbnb listings. This is also the trend elsewhere, if you go to Airbnb.com and check for listings for any city be it Tokyo or Hong Kong you would see a large section of the listings are done by common owners. Hence, Airbnb has become a great platform for people to start a hotel/accommodation business, without registering the business! This has multiple problems:Owners listing the space do not need to comply with hotel regulations with respect to safety, environmental sustainability, etc. Several incidences of people suffering lethal injuries in apartments in Texas (