The sharing economy: a hedge against recession setbacks

Abstract

PurposeThis paper aims to provide lessons from the emergence of the sharing economy after the 2008 recession and helps managers prepare more effectively for recessions in the future.Design/methodology/approachIn this conceptual paper, the authors build on research on the sharing economy and study the best practices contributing to the sharing economy’s emergence and growth after the 2008 recession. The authors identify the key characteristics of this new economic sector and share lessons that can be used by other companies.FindingsThe authors recommend five major takeaways: seeking a more flexible supply; actively watching the trends; leveraging customers like employees; using advanced data science and technology like the sharing economy companies; and proactively avoiding panicked responses. This will help companies succeed during recessionary times – and the boom times that follow.Originality/valueThis is the first paper that, to the best of the authors’ knowledge, investigates the interplay between the sharing economy and recession and highlights practical lessons.