By Jeremy Cheng, World Traveler
A Shared Economy is sharing your resources that you don’t need immediately and improving the resource utilization rate and getting a return.
The advantages of a Shared Economy are that it is low in cost, it builds up a good business relationship, and it is considered a sustainable development. Let’s look at China’s Shared Economy.
Firstly,
in China, there is an app called DiDi which is essentially the same as Uber in the sense that you are able to call a car in order to travel somewhere. Like Uber, they don’t provide cars for the drivers. Drivers are expected to use their own car to pick up and drop off passengers. Therefore, there are no parking lot fees, and it reduces the expense one would have to pay if one were to drive one’s own car. Drivers are required to sign a contract with the DiDi company that ensures the safety of the passenger. Calling DiDi is superior to calling a taxi because with taxis there are more expenses for both the company and the passenger (taxi companies need to buy cars for their drivers and also take parking fees into account). DiDi’s passengers can pay a lower price, and this attracts many users in China.
Secondly,
DiDi builds up a good business relationship. For instance, for those who may travel alone, drivers are able to provide conversation with their passengers. It is another way to make new friends and acquaintances. Drivers and passengers are able to talk about the books they read, the places they have been, and the hobbies they like. The possibilities are endless. Airbnb conducted research that showed that people like their drivers to share the same or similar hobbies.
Finally,
Shared Economy encourages sustainable development.
China is universally acknowledged for having the largest world population. Unfortunately, the population is becoming too large for the amount of land that the country owns. Shenzhen, Beijing, Guangzhou, and Shanghai are some of the biggest, most overpopulated cities in China. With a larger population comes more people who want to own their own car, and usually each person’s car only has one to two people, which dramatically inflates the amount of traffic on the streets. In each car, there are multiple seats available that aren’t being used. This is a waste of a great carpooling opportunity. If people start to use those seats, commuters can have more methods to get to and from work, and the numbers of the cars on the road will decrease. This is a way that recycles resources without opening new land in order to make and sell more cars.
Here are few examples of the Shared Economy in China.
- DiDi offers a more convenient travel mode for everyone whether they’re just getting off work, school, or just living their normal lives.
2. LaiDian PowerBank is a power station for your phone. When your phone doesn’t have battery, users are able to rent one and charge their “dead” phone.
3. OFO Bicycle, another sustainable company, provides bikes for people who only want to travel a short distance or don’t own a car.
Editor: Bella Bier