Sharing Economy Is Not Irrelevant To The World’s Poorest

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The news? Digital sharing models are not just growing  in size but are also expanding  into new geographical locations- even into poorer economies! One may ask- Are they likely to prosper there too? The short answer is Yes!

I came across a ‘Digital Sharing Economy report’ from Dalberg, an advisory firm focussed on global development issues, that illustrates why these models are likely to flourish in emerging markets. I like the simples answer:

Because the heart of the model, sharing via technology, converts these markets’ liabilities – scarce assets and abundant labor – into opportunities.”

It’s no secret that digital sharing is creating new markets and job opportunities and improving economies.

In the report, five criteria (Trust, digital connectivity, literacy, digital payment usage, and regulations supporting entrepreneurial activity.) were used to come up with a digital readiness score. ( More about the methodology used)

In this report however, although wealthier countries tend to be more advanced when it comes to digital sharing, findings  show promising efforts in certain developing countries despite barriers such as low literacy rates, lack of social trust and difficult environment for entrepreneurship. Nevertheless, trust remains a key factor to make digital sharing effective…(More)

In other news, an article by Wall Street Journal highlights how big Uber has been spending in it’s international expansion. In certain countries like China, Uber has been spending big to compete with the local rivals.(More about how much Uber has raised in debt and equity to expand around the world)

 

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