Sharing Economy in Canada
Posted by: Jenny | 2016-09-15 11:26:01
Nowadays, people's sharing of all kinds of assets is the so called Sharing Economy. Ordinary people can rent those unused things to people in need and gain some cash in return while the demander can use those things at lower cost compared to the market price indicating the "sharing" of goods including cars, bicycles, offices and even camera lens as well as electric tools. Moreover, even the intangible things are shared, such as skills and knowledge. The shareman not only about includes the ordinary people but also a team or an organization, and even the famous universities like Harvard University and Massachusetts Institute of Technology are also included.
Where is the demand where is the market. The specialized organizations and companies for renting personal idle items develop at the right moment, such as Airbnb. It is based on its network platform which organizes the available house resources for renting. For instance, a visitor comes to New York, he can log in the Airbnb to search the local available house without booking a hotel. Such kind of house is cheaper than the hotel and it is local house that can enjoy the local culture and the experience will be exactly different with the hotel.
Besides, the Communauto is also the company operates the Sharing Economy which mainly focuses on cars sharing. Their target customers are those who are not willing to pay so much money for a car or those who can not offer a car, but want to use a car. Compared with owning a car, sharing car is a more rational comsuption and is much more convenient.
Since its establishment in 1994, the business of the Communauto has grown vigorously. Up to now, there are 27000 members of Montreal use its basic service. The cars will be driven back where they get the car. Nowadays, there are about 1,220 cars of the Communauto driven on the road among which 1000 are in Montreal.
In 2012, the worldwide annual operating income of the Communauto reached 17million dollars which included the Mobizen car sharing service published in France in 2012. The overall profit rate waved between 5%and 6%.
The professional said that till the end of 2013, there were about 1 million members took part in the car sharing network in north Amarica and 4 million all round the world. It was estimated that the data will boost to 30 million. The initial success of the car sharing enterprise indicates that people are cultivating a new habit gradually which always benefit to the environment.
In addition to the sharing of car, house, electric tools and the tangible things, Harvard University and Massachusetts Institute of Technology cooperated to put forward the edX course sharing platform which has gathered the faculties of the two universities into one to benefit billions of people.
In Montreal, although the assets sharing is not uncommon, there is some certain boycott for some other industries. Last year, the hotels and catering industry accused that such kind of person-to-person house renting behavior violated the law with the reason of the unfair competition situation it led, and they persuaded the government of Montreal to keep stricter surveillance on Airbnb, HomeAway, Vacation Rentals By Owner and other such kind of companies. Besides, the tax authority also kept eyes on the financial income of those start-up companies for the taxable part.
It is said that the main factor haunting the sharing economy is that it lacks the surveillance, such as the problems of whether the owners of the houses have operating licenses or whether they have paid the tax which is unknown. Also, the sharing economy threaten the interest of the traditional enterprises. In this case, many traditional enterprises take this opportunity to require the stricter surveillance from the government and claim that such kind of person-to -person house renting and car sharing behavior has violated the national and local transportation and housing rules and regulation.
There are aways some benefits and backwards in each newly start-up company. The insider said that for the sharing economy, it is necessary for us to formulate a game rule. But when a strict management system is put forward, it will hit the development of the sharing economy. In some case, it will make the companies operating under the sharing economy model lose the chance of proofing themselves.
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