What's the difference between the Gig Economy and the Sharing Economy? - Spacer Blog

What’s the difference between the Gig Economy and the Sharing Economy?

Defining The Gig Economy Versus The Sharing Economy 


In short, the gig economy is when individuals offer their services on a part-time or casual basis to companies both small and large, whereas the sharing economy allows for individuals and families to take advantage of assets they possess and rent them out to people who need them. 


World economies continuously evolve with the internet and technology, giving rise to the gig and sharing economy – where unconventional careers and innovative types of income-generation activities are made possible.  


The gig economy largely comprises of individuals that offer their services on a part-time basis. Freelancers get compensated on the services they have completed through their virtual offices. For example, platforms such as 99 Designs and Airtasker facilitate individuals participating in the Gig Economy by connecting them with businesses. Beyond assisting freelancers, the Gig Economy is also extremely beneficial for employers, helping them to source talent from all corners of the world. 


On the other hand, in the sharing economy, individuals, as well as groups, are able to make use of any underutilized assets that they own. This could include their parking spaces, vehicles or empty bedrooms. Individuals can make money off their existing possessions and help those who need these physical assets. Spacer is a perfect example of a sharing economy platform. As a peer to peer platform (P2P), it enables anyone to list their space on the platform and rent it out to friendly locals in need, whether it be a self storage unit or an unused garage space at home. 


As the years have gone by, the sharing economy has grown and evolved, with companies marketing and operating business to business (B2B). These include co-working platforms that allow for multiple businesses and entrepreneurs to utilise the same working space in large metropolitan areas. WOTSO is one such co-working platform that has various buildings across Sydney and Australia and is home to the Sharing Hub.


Related: The 8 Most Popular Passive Income Streams 2021 [Tested and Ranked]


Drivers of the Gig Economy


Millions of people, either by circumstance or by choice, are now part of the gig economy. These part-time workers and independent contractors can enjoy flexible working conditions. Employers are also more likely to hire temporary workers rather than full-time employees to handle specific one-time projects. This allows them to bring in a greater range of skill sets appropriate to the task as well as to save on recruitment/hiring costs. 


Although a freelancer may not enjoy full-time employment benefits, the chance to engage in multiple jobs is open to them, as they are able to contract out their services to more than one employer at a time. It also facilitates a greater variety of job opportunities for freelancers, providing them with access to industries that were previously difficult to enter. 


Similarly, a growing number of corporate executives have ditched their power suits to work independently, at their own pace and within their comfort zones. This shift from a full-time career is widely preferred by those that handle knowledge-intensive and creative positions. If you are one of these talented individuals, go solo and sell your talents to the highest bidder. 


So far, the biggest driver of the gig economy is digital technology. It has made it possible for you to engage in productive labor remotely and without leaving home. As a consequence, the Gig Economy is a huge booster for greater diversity in the workplace. Meanwhile, it also allows you, as employer, to pick your choice of workers without the rigours of screening and hiring potential employees in a formal setting. Everything from selection to payment for services can be done online securely through these marketplaces. 


The Sharing Economy in the Digital Age


Much like the Gig Economy, tech has really sped things up in the Sharing Economy. People are able to communicate online far quicker than before and negotiate dates and times to use the services of other peers. Spacer, like all marketplaces, can connect Renters with Hosts via their platform. The sharing economy in general has really adapted itself to fit in with the world of laptops and smartphones, with apps that list the services available for individuals. 


Big data is one of the keys that opened the market for the sharing or collaborative economy. Usually, an Internet connection is all you need to complete either buying or selling transactions. These exchanges are facilitated using cloud-based platforms.


Whether you are a member of the Gig Economy or Sharing Economy, as long as what you do is a source of personal satisfaction or one that helps you earn a living or extra income, then these new industries works for you. 


If you have an asset to share, like an extra space in your home, a second garage, or an unused room, why not engage the experts? Collaborate with us, at Spacer and we can help you turn an idle item into an earning asset. As a host, connect with Spacer and start receiving additional income without exerting much effort. You do not have to worry about contracts or how to handle prospective Renter. Spacer will take care of those for you. On the other hand, if you need to rent a space, say for your car, you can also rely on Spacer to help you get the best deals in your area. 

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