International Journal of Innovation, Management and Technology, Vol. 9, No. 6, December 2018 What is Collaborative Consumption? Platforms and Participation of People in Collaborative Consumption – Impact of the New Technologies Benson Nwaorgu own automobiles who do not have any services of cars. In Abstract—Collaborative consumption is an emerging new this way, this process has a benefit of the usage of the concept that is based on sharing, renting and borrowing. product by sharing. It also gives a positive impact on the Involvement of a large number of individuals and service surroundings. Additionally, it gives a profit to users who do agencies in collaborative consumption shows the success of it In not need to spend any money on purchase and maintenance this paper, we will focus on what platforms of collaborative of anything. consumption are, which ones are available and who are the In a reshuffling of products, products are reshuffled from participants. The paper also discusses the impact of new technologies on collaborative consumption and we proposed a one place where they are not needed in any other place hypothesis that the concept of CC is evolving with the where they are in a deficiency. This type of service evolvement and the expansion of modern technology systems. remained always present in the market but now the modern New world technologies changed our daily life and additionally technologies have enhanced it in much better ways. changed our ways of consumption. Online web system has Compensation system differs in this new market. Some are changed almost everything in recent years. This paper will totally free while some costs. There are several examples in propose both advantages and disadvantages of technology evolvement and its impact on collaborative consumption. which products are exchanged with other products that have similar worth. Typically the interchange of products occurs Index Terms—Collaborative consumption, sharing among strangers. However, there are some forums where economy, sustainability, internet, new technologies, peer to individuals have a relation with neighbors. peer business. Cooperative lifestyles, some tactile resources are shared like time, space or any skill. However, the web allows individuals to harmonize with each other so a cooperative I. INTRODUCTION lifestyle takes place globally. Community-based peer to peer Collaborative consumption had become too much ejection is an example. important for several entrepreneurs, financial experts, and Collaborative Consumption totally depends upon the retailers. Thus, it became a subject of many researches and customer self-seeking while at the same time it offers studies. It was observed by Roo Rogers and Rachel Botsman several community, financial and surrounding based benefits [1] that people provide to each other a sleeping space using as well. These advantages match up with the causes of the platform and they concluded that this cannot be solely collaborative consumption defined previously [1]. called collaborative consumption. For example, a web Socially collaborative consumption increases individual’s platform named Couchsurfing is a community where people interaction with each other as a result of people meeting are offering hospitality by sharing a home with travelers. each other. Individuals are connected with neighbors or Collaborative consumption as a concept was defined as relatives so that way they get low-cost shares and rides. The follows [1]: social cause of collaborative consumption is marked as the ―Traditional sharing, bartering, lending, trading, renting, renewal of community. People save their money as they gifting, and swapping redefined through technology and need to get fewer products whereas still having access to the peer communities- that is remodeling business, services of this product. As an instance, people do not need consumerism, and also the means we tend to live‖. to get an automobile to own the quality of an automobile Collaborative consumption has three basic directions and people not ought to get a drill machine to induce a hole named as cooperative lifestyles, reshuffling of products, in any wall. products and products usage system (PUS). There are several environmental benefits of collaborative Products usage system tends makes people to change their consumption where individual creates a lot of use of mindset from owning products to actually using them. So, resources and products which already existed. In people get an advantage of products usage although they are collaborative consumption employment ration per product is not their own. In product usage system products that are high so fewer products are required to be made [2]. Besides owned by an individual or any organization are shared. Ride collaborative consumption will enhance the productivity of sharing is a good example of products usage system where services such as adaptability. For example, in vehicle people make a contribution of those people in seats of their sharing platforms customers are allowed to use the empty seats of vehicles so in this way overall fewer automobiles have used this results in better environment conditions. Manuscript received September 5, 2018; revised November 7, 2018. Benson Nwaorgu is with Digitalization Research group, School of The fourth runner of collaborative consumption is Peer to Economics and Business, Kaunas University of Technology, Kaunas, Peer technology. In modern era ancient approaches to Lithuania (e-mail: [email protected]). doi: 10.18178/ijimt.2018.9.6.819 240 International Journal of Innovation, Management and Technology, Vol. 9, No. 6, December 2018 trading are reappearing in such ways and manners which include consumption. This definition of collaborative were never possible before. In short, collaborative consumption is boundless and it is not adequately consumption provides an alternate resolution to the universe emphasized on the accession and dispensation of the financial, communal and environmental disaster. resource. Moreover, it is totally based on the concept of Collaborative consumption also has four basic principles conjoint consumption. besides the four runners and works on the base of these For instance, in a group of people drinking beer together, principles. The first is the trust among the newcomers. To every individual spends money on their own beer. In this develop online trust among the newcomers is one of the way, their consumption is correlated at a particular time and main challenges of the collaborative consumption. The place. However, this way of consumption is one of the second is the belief among the individuals. Some scholars [3] marketplace exchanges. If a pitcher of beer is bought by one signified that straightforward orders will permit for a of them for consumption then it would be considered as competently self-coordinated commons, which people can sharing as it includes ―the act and process of distributing collaborate to act within the good, even in capitalist what is ours to others for their use‖ [7]. societies. The third is the futile potential. Futile products If there are two friends and they want to drink beer but become appropriate for the collaborative consumption and they do not want to get a full pitcher of beer also they do not are used with vital prices. An automobile that is used for want to pay the inflated price by buying full glass. They only one hour in a month costs too much [1] The fourth and might persuade a couple at the second table to split a pitcher final principle is the specific number of users that is attained. of beer with them. In this way, the cost and beer will be Sharing cars, open libraries, renting rooms or digital divided between both tables. This type of deal includes such learning communities – many forms of collaborative kind of collaborative consumption in which both the consumption are becoming more and more popular and acquisition and distribution of the product is conjointly represent excellent alternatives to traditional markets. organized. In this paper, we seek to access the ways what platforms If a football game is watched by a group of people then it of collaborative consumption are available and explain what would compose collaborative consumption [6]. However, in impact new technologies have on this new form of this situation, no event distribution is acquired by fans (the consumption. game will be played at it's fixing time and venue regardless of whether the fans have bought tickets or not). They also didn’t cooperate in its acquisition to get any discount by II. MATERIALS AND METHODS buying their tickets together. This too would not be an This paper was approached by a comparative method and example of collaborative consumption as the term that we the conclusions were made by analytical and syntactical used. analysis of different web platforms, their data, services and We also observed the misspecified use of the concept of impact. The main purpose was to discuss impact of new ―collaborative consumption‖ by argues [1] which defined it technologies on collaborative consumption. In the purpose as ―traditional sharing, bartering, lending, trading, renting, of research relevant studies, articles, books and web blogs gifting, and swapping‖. This definition is very broad and has were used. The paper also consists of author’s personal mixes between concepts like market exchange and sharing. observance regarding the collaborative consumption. The term ―collaborative consumption‖ is more clearly explained when