Economy that runs on ‘sharing’

LAHORE: The sharing economy promotes a transition from ownership to access, enhancing the sustainability and efficiency of resource utilization. Pakistan’s shrinking middle class could benefit greatly from this collaborative approach.

In a context where affluent individuals are reluctant to bear the burden faced by lower-income groups, the collective sharing of commonly used resources can offer significant economic relief to numerous families.

The sharing economy, or collaborative economy, is a model where people share access to goods, services, and resources, typically through digital platforms. Rather than owning items outright, individuals can borrow, rent, or share resources, minimizing the need for full ownership.

Services such as Careem and Bykea enable users to share rides, which decreases the number of vehicles on the roads, reduces emissions, and creates flexible earning opportunities for drivers. Bykea, in particular, is gaining traction as a cost-effective transportation option in major cities.

Car-sharing also benefits some middle-class families by allowing one vehicle in a neighbourhood to drop off multiple students attending the same school, while another car picks them up later.

Similarly, employees commuting to nearby offices often share rides, especially in response to rising petrol prices. Car rental services that offer hourly or daily rentals are also proving to be more economical for occasional use compared to owning a car.

Airbnb is gradually gaining traction in Pakistan, offering homeowners a way to rent out spare rooms or entire homes. This provides affordable lodging for travellers and additional income for hosts.

Many families are also hosting paid guests, particularly students, to supplement their income. Shared living spaces not only reduce living costs but also foster a sense of community among residents.

Some sharing practices are still emerging in Pakistan, such as renting tools or clothing. Recently, renting wedding attire has become popular in major cities, significantly cutting down the expense of clothing for these events.

Platforms like Peerby or Rent the Runway enable people to borrow or rent tools, clothing, and other items, promoting sustainability and reducing the need for individual ownership. Meal-sharing platforms are not yet available in Pakistan, but globally, services like EatWith allow people to host or attend meals in private homes, building community and offering unique dining experiences.

Farmers can also sell shares of their harvest, ensuring a steady income for themselves and providing fresh, local produce to buyers.Shared office spaces, particularly in the IT sector, offer flexible working environments, reducing the need for traditional office leases and encouraging collaboration.

The sharing economy is creating new job opportunities and income sources. It allows individuals to access services and goods as needed without long-term commitments, promotes efficient resource use, reduces waste, and lowers environmental impacts by minimizing production and ownership requirements.