The economist article “Peer-to-peer rental: The rise of sharing economy”, explains the evolution of the ‘sharing economy’. People are encouraged to make profit by renting their underused assets. The increase in technology, such as the creation of websites that encourage renting, has facilitated the connection between the owner and the renter. Should external companies such as hotels and car rentals be concerned about this? In the short-run, businesses will not experience a direct competitive impact; however in the long-run, people will become aware of the benefits this activity provides. For example car makers can be affected since people would prefer to rent a car when needed instead of buying one, at the same time they avoid the responsibility of owning one. Is this a “win-win” situation? Since the owner is making some extra money of their underused assets and the renter is saving money by renting a product instead of purchasing a brand new one, it is a win-win situation.

Fear of sharing owners sharing their possessions with strangers is one of the elements that have prevented the sharing economy to grow rapidly. However once the renters have had one good experience, they are confident enough to try it again.