The concept of sharing is so far ingrained in our everyday that most of us couldn’t imagine living in a world where we can’t share a ride, couch-surf or leave our dog with a stranger at the tap of a screen. The advancement of the sharing economy, defined by Google as an economic system in which assets or services are shared between individuals, is a prime example of this.

In fact, per the Innovation Report 2018 published by Lloyds, the global sharing economy is expected to grow to $335 billion (approximately £261 billion) by 2025. That’s considerable growth in comparison to 2014, when the estimated size of the global sharing economy was circa $15 billion (approximately £12 billion.)

This isn’t surprising when in theory the sharing economy is supposed to save resources, strengthen regional and local communities, cut costs, enable consumption for lower income groups, increase investments and provide new jobs. However, while there is a plethora of benefits to the sharing of assets and services, there is also countless risks.

In analysing Lloyd’s innovation report, British marketplace OnBuy.com wanted to share how American and British consumers feel toward the sharing economy and what they believe the risks and benefits are.

To achieve this, OnBuy designed graphics to showcase data collated by Lloyds from more than 3,000 US and UK consumers as well as representatives from 30 sharing economy companies.

In terms of benefits, both American and UK consumers believe ‘it can be cheaper for users’ - the number one benefit to the share economy, at 60% and 58% respectively.

Thereafter, it is clear American consumers are more enthused with other benefits, such as ‘it is more convenient for users’ and ‘it provides more flexibility for users’ at 52% apiece.

Comparably, just 39% of British consumers believe ‘you can earn money from your assets when you aren’t using them’. While 43% of American consumers would say the same.

In terms of risks, American consumers believe ‘there’s a risk to personal safety interacting with strangers’ which is cited as the number one risk to the share economy, at 60%.

While British consumers are caught between ‘there’s a risk to personal safety interacting with strangers’ (44%) and ‘there is no guarantee of the quality of the service or facilities (44%) in sharing their opinions on the number one risk.

Other risk factors to consider include ‘people sharing their assets could have them damaged’ (American 46%; UK 42%) and ‘people sharing their assets could have them stolen’ (American 43%; UK 41%.)

Lastly, 37% of American consumers and 33% of British consumers agree ‘there aren’t sufficient safeguards or protections in place for users’ in the sharing economy.

Cas Paton, Managing Director of OnBuy.com, comments: “If the sharing economy is to reach the proposed $335 billion mark in 2025, the industry needs to thoroughly consider the opinions of consumers. Today, the way people spend money and interact with the everyday is changing. Companies need to match this change with innovative products which meet the needs and expectations of their customers.

To combat risk, Lloyds recommends sharing economy companies partner with insurers to enhance credibility, instil confidence and build trust to drive business growth and gain a competitive advantage. I truly believe this is the way forward. Especially considering 58% of American and UK consumers currently believe the risks outweigh the benefits of using sharing economy services.”

(Source: OnBuy.com)