Participatory Economy and New Business Models in the Digital Age

The Sharing Economy: From Ownership to Access Between Innovation and Regulatory Challenges

The sharing economy represents a fundamental transformation in the relationship between consumer and producer, moving from the logic of “ownership” to the logic of “access” through digital platforms connecting owners of idle assets with users seeking them temporarily. Estimates indicate that the global sharing economy’s value has reached $1.5 trillion, with projections exceeding $790 billion by 2028 in specific sectors. Despite this massive growth, the sector faces fundamental challenges related to trust, regulation, and governance models, with alternative models such as digital cooperatives emerging to reclaim the original utopian spirit of the sharing economy. This article, based on recent academic research and analytical reports, reviews the various dimensions of the sharing economy—from its philosophy to its regulatory challenges, from trust-building mechanisms to emerging alternative models.

First: The Philosophy of the Sharing Economy — From Ownership to Utility

The sharing economy is defined as “an economic and social system of transactions in which individuals use third-party technology platforms to match providers and users to exchange goods, services, or ideas in a way that does not transfer ownership.” At its core, the concept of “access” replaces the concept of “ownership”—the user does not need to buy the drill, but needs the hole in the wall, as Robert Chan, Managing Director of car-sharing platform Turo, explains.

This philosophy reflects a qualitative shift in consumer behavior, driven by several factors:

• Growing sustainability awareness: The desire to reduce waste and use resources better, as the average electric drill’s lifespan does not exceed 13 minutes of actual use.

• Technological progress: Digital platforms operating on Web 2.0 philosophy, enabling direct communication between parties, ratings, and electronic payment.

• Economic pressures: Converting underutilized assets (such as cars and apartments) into income sources. On Turo, a host owner achieves an average annual return of $1,000 from their car in Australia.

Conceptual Comparison: The Sharing Economy Between Models

The digital sharing economy (DSE) represents an intermediate space between two traditional models:

Second: The Two-Sided Platform Model — Operating Mechanism and Challenges

The sharing economy is built on a two-sided marketplace model, where the platform acts as a digital intermediary connecting two distinct groups of users: service providers (asset owners) and consumers (renters). The basic mechanism is simple, but the challenges it faces are complex.

1. The Cold Start Problem

Building both sides together is the biggest initial challenge, as having providers without consumers, or vice versa, creates no value. Platforms require long-term strategies, such as keeping commission rates low at the entry stage to build a thriving ecosystem, as Turo does, rather than maximizing short-term profits.

2. Trust as the Core Currency

Trust is the cornerstone of the sharing economy. How do you trust a stranger with your car? Chan answers: “At the end of the day, it’s about risk and reward.” Successful platforms adopt multiple strategies to build trust:

• Rating and review systems: Enabling transparency and user reputation.

• Advanced risk assessment models: Turo developed over 13 years the Turo Risk Score system to assess risk for each trip, without discriminating against individuals, using advanced data science.

• Flexible protection plans: Giving owners choices between higher returns with higher deductibles, or comprehensive coverage with lower returns, enabling informed decisions.

3. Platform Governance: From Black Box to Transparency

As the sharing economy matures, criticism has emerged around algorithmic management, where platforms operate as “black boxes” determining tasks, prices, and ratings in an opaque manner. Academic research highlights that this model represents a re-centering of control within informational infrastructures, where control is exercised through algorithms rather than bosses or negotiated contracts. This raises fundamental regulatory challenges regarding algorithm transparency and platform worker rights.

Third: Regulatory Challenges and Alternative Models

1. The Regulatory Challenge and Legal Gap

The relationship between platforms and regulators is a continuous battleground. Platforms emerged in a legal grey zone and now face growing pressure to comply with tax regulations, labor laws, and safety standards. In Europe, EU Directive 2024/2831 on improving working conditions in platform work is an attempt to bridge this gap, but it shows how legislation struggles to keep pace with rapid innovation in this sector.

2. The Alternative Model: Digital Cooperatives

Recognizing that dominant platforms like Airbnb and Uber have not delivered on their original utopian promises, but rather exacerbated inequality and marginalized local communities, alternative models such as digital cooperatives have emerged. These platforms adopt the principle of shared ownership, where the ownership model includes employees, consumers, or other stakeholders, decisions are made democratically, and profits are redistributed.

Cooperatives apply a “change from the margins” strategy through three main mechanisms: market decentralization (to avoid single-player dominance), building authentic narratives (focusing on community values rather than profit maximization), and building institutional partnerships (with governments, unions, and non-profits). Despite their limited resources compared to giants, these models demonstrate that viable alternatives exist and can create real change.

Fourth: Future Trends — Toward Maturity and Sustainability

The sharing economy is heading toward a new stage of maturity, characterized by three main trends:

1. Hybrid models: Integrating elements from multiple models, such as combining long-term access with complementary asset sharing (child seats, surfboards, camping gear) as Turo currently does, increasing transaction value and expanding the revenue base.

2. Sustainability and the circular economy: Shifting focus from mere economic efficiency to positive environmental impact, by promoting the use of existing resources and reducing waste. The global volume of idle shareable resources is estimated at about $3.5 trillion.

3. Smart regulation: Moving from regulatory reactions to proactive regulatory frameworks, including algorithm transparency, worker protection, and competition controls, while recognizing that over-regulation may stifle innovation.

Fifth: Conclusion and Future Outlook

The sharing economy represents more than a passing technological trend; it is a redefinition of the relationship between consumer, supplier, and resources in the digital age. Evidence indicates that its future depends on its ability to balance three conflicting poles:

• Efficiency and innovation: Provided by digital platforms and technologies.

• Fairness and trust: Required by social sustainability and a balanced ecosystem.

• Regulation and governance: Ensuring stability and protecting all parties.

As the UNSW report concluded: these transformations represent one of the most important market shifts in the digital age, and companies that understand and adapt to this shift will be positioned to benefit from it, while companies that ignore it risk being overtaken by more agile competitors that better meet evolving customer needs.

Sources and References

1. UNSW BusinessThink. (2025). Turo MD Robert Chan: sharing economy strategy for business leaders.

2. Abdalla, S., Amankwah-Amoah, J., Hirekhan, M., & Temerak, M. S. (2025). Unlocking the potentials of hybrid business models in the sharing economy: an integrative review and new research agenda. Information Systems Journal.

3. SpringerLink. (2025). Platform cooperatives in the sharing economy: How market challengers bring change from the margins. Journal of the Academy of Marketing Science, 53, 419-438.

4. MDPI. (2025). Beyond Post-Fordism: Organizational Models, Digital Transformation, and the Future of Work. Administrative Sciences, 16(1), 13.

5. Electronic Markets. (2025). Sharing reloaded: How digitalization transformed the tenets of sharing. Electronic Markets, 35, 86.

6. ScienceDirect. (2025). A STEEPLE Analysis and Information Technology Professionals’ Interview Insights Regarding the Platform Economy.

7. KCI. (2025). Is the Sharing Economy Ushering in the End of Ownership in the Fourth Industrial Revolution Era? – Focusing on Uber and Airbnb Cases.

8. IGI Global. (2022). Handbook of Research on the Platform Economy and the Evolution of E-Commerce.