People Innovation Excellence

Behind The Rise of Sharing Economy (2)

By: Ignatius Enda Panggati


Sharing could be done if only you trust the person that you shared with. Trust plays an important role in SE. The business model of SE must ensured, guaranteed and maintain the trust between contributor and consumer through the SE startup companies. Also online trust play important part in the development of SE. As mentioned before that SE uses web 2.0 as their platform, so with the increasing of people trust in online system, then people trust in SE is also increased.


Entrepreneurship plays important role in SE. Many entrepreneurs created SE through opportunities that they saw in the market, example Nadiem Makarim Go-Jek founder, saw opportunities in ojek and technologies when he was using ojek service for transportation, and the he created Go-Jek. The idea of creating SE companies lies behind entrepreneurial opportunities. Strategic entrepreneurship also contributed in the developing SE, where strategic entrepreneurship incorporated entrepreneurship and entrepreneurial opportunities in their strategy. With strategic entrepreneurship, the entrepreneurs actively to recognizing, exploiting new opportunities in the market for developing their startup companies. For example, in Go-Jek, they applying strategic entrepreneurship by developing many business unit such as Go Mart, Go Box, Go Food, Go Busway, Go Clean, Go Glam, Go Massage. they launched the business unit as a strategy to exploit the opportunities.


Prosumer is the term that coined by Alvin Toffler (1980), he predicted that the role of producers and consumers would begin to merge (Consoli et al., 2011). Prosumer is the what happened in the SE, where consumer in SE is not just played part as consumer but also producer. For example in Airbnb, consumer also given options not just rent a rooms but also to rent their rooms. In SE, customer have an active role in the company as prosumer, consumer, and producer. So customer also have a role in the development of the SE.

Keep it simple

From Airbnb, Go-Jek, eBay, Uber , there is one thing that common in their marketing strategy, it’s their market segment. Their market segment is mass market, everybody can use Airbnb, even customer looking for rooms, or a host looking for tenants. There is no limitation in their market segment. The limitation is only that their customer must have smart phone with Android or iOs and thay have minimum skill, knowledge about operating a smart phone. Keep it simple, is the key to made that happened. Keep it simple, and everybody can understand, and everybody can operate it, and everybody can enjoy their applications. And also keep it simple, helped the SE startup to reached millions users in a short time, and helped the SE startup to grow in amazing rate.

The emerging market.

According to Forbes, the developing countries, or the emerging markets are fast becoming driver of global economy growth . Over the next few years, around 70% of world growth will come from the emerging market.

Many of the SE startup companies realized the potential of the emerging market, and focused their target on this emerging market, also some of the SE startup companies was founded in the emerging market, take Go JEk as example, that founded and operated in Indonesia. Even Uber began to operated in emerging market such as Indonesia.

The value

SE startup companies mainly concern about what value that they can give to their user. What value that will have impact on their customer. This value that they offer usually comes from entrepreneurial opportunity that they founder saw when they founded their startup.

 The Future

The rise of SE.

If we take a look at the aspect that drive SE phenomena above, we can see that SE have a great potential to grow in the future. SE run on an online community based social service, so the development of internet and web 2.0 will contribute to the growth of SE. Also SE basically about accessing, obtaining and sharing, while sharing is culture for many people around the world. the simplicity of SE startup apps will help increasing number of users. The entrepreneurs, many SE startup companies founded by entrepreneurs who actively looking for entrepreneurial opportunities and exploit them. And also the potential of the emerging market that many SE startups trying to tapped into it.

According to Mix magazine, PricewaterhouseCoopers predicted that in the year 2025, SE will have valuation at 335 billion dollars $, that is a amazing leap from today valuation that is 15 billion dollars $.

SE phenomena today it’s only at a rise phase, and it’s far from the mature phase.


References :

Consoli, Domenico., Musso, Fabio. (2011) Marketing 2.0: A new marketing strategy. MPRA Paper No. 3116, posted 25. May

Hamari, Juho., Ukkonen, Antti., Sjoklint, Mimmi. (2015). The sharing Economy : Why People Participate in Collaborative Consumption. Journal of the Association for Information Science and Technology. SOI:10.1002. July 2015.

Mix marketing communication. 02/XII/ 20 Agustus – 15 September 2015.

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