Structure of the Thesis:

The structure of the research will start with introduction and background of case companies and detailed explanation how the work is in case companies Wolt and Foodora from a courier`s perspective. These companies were specifically chosen because they operate in Finland and they are example of companies functioning in the Sharing Economy.

Secondly, there is information on how the companies are doing at the time this research was being carried out. In order to understand first-hand the current situation of these platforms, certain individuals working with these companies have been interviewed regarding their experiences with the companies and suggestions. Based on the collected data analysis, a conclusion is given.

Introduction

Motivaton

Research Objectives

Literature Review

Methodology

Interviews

Analysis

Conclusion

2. Sharing Economy

What is the Sharing Economy?

The most common definition used to describe the sharing economy is the peer to peer exchange of services or products (Investopedia, n.d.) or the sharing of services and assets between private individuals (Lovick, 2020). The services are available on demand between two parties and there is no long-term ownership of assets or signing of contracts (Delloite, 2016). According to Rachel Botsman and Roo Rogers, the utilization of shared and open

resources across multiple platforms that we see today can

be described as the social revolution (Figure 1, Source: Shutterstock)

(Rachel Botsman, 2010). Uber and Airbnb are examples of companies functioning in the sharing economy. According to mid 2019 statistics Finland, around 180,000 people are self-employed (Yle, 2019). One of the major motivations for people to work in the sharing economy is the flexibility (Rosenblat, 2016). Some people use the platforms for earning extra outside of their traditional 9-5 jobs while some use it as a short-term source of income and some use it as a main source of income in sometimes in long-term (Rosenblat, 2016). In Finland, many companies such as Freska, Foodora, Wolt and Enjoy are functioning as part of the sharing economy and operating as freelancing platforms. According to Time Magazine, the Sharing Economy is one of ten ideas that will change the world (Time, 2011)

What are the origins of Sharing Economy?

The concept is not exactly new as the idea has been common in the past among communities through bartering (Miller, 2019). The market experienced a change in the economy after Ebay was launched in the mid 1990s, people had access to items they were looking for and this peer to peer exchange of products and services became increasingly popular (Belyh, 2015).

Furthermore, the technological advancements since then have had a huge impact on the market and has led to the formation of more ideas that we see today such as Uber or Airbnb (Belyh, 2015).

How has the Sharing Economy Impacted life:

The sharing economy has a reputation of effecting traditional established businesses (Miller, 2019). Several industries such as transportation, consumer goods, health and tourism are examples that have been disrupted by Sharing Economy (Miller, 2019).

(Graph 1) In 2017, the revenue of platform providers in the sharing economy was $18.6 Billion and is estimated to reach $40.2 billion by 2022 (Statista, 2017).

One of the big players such as Uber has many advantages over the traditional services it has replaced to an extent (Wihbey, 2016). Customers can now go around in a lower price than traditional taxis which has increased demand for workers (Wihbey, 2016).

The job offers flexibility and workers choose to work whenever they desire, some people use this kind of work as a secondary source of income while other use it as their main source of income (Wihbey, 2016). As one signs up as an independent worker, there are no benefits from the company itself that a regular employee has (Wihbey, 2016).

Upsides of the Sharing Economy:

The sharing economy has many benefits such as increasing sustainability, community trust, less ownership and more self-employment opportunities (CrowdHolding, 2017). As more and more people do ride sharing, sell used items they don’t need and rent items they would need for a short period, there is less waste being produced and everything is used for longer periods (Matofska, 2019). One may purchase a unique designer dress they only needed once and is now sitting and gathering dust in storage, that can be taken out for rent or selling to another person who needs to live its purpose again and see the light of day, many applications such as The Volte allows one to do that (Anderson, n.d.).

Downsides of the sharing economy:

There are several downsides to the increasingly popular sharing economy such as uncertainty, trust issues, unstable income and lack of benefits (Neuburger, 2019). As this idea is still in its early stages, there are lack of regulations from government and legislations, hence some safety related concerns are high (Neuburger, 2019). Moreover, even though flexibility sounds

convenient, the demand for services and products is not steady and unpredictable which creates problems related to a stable income (Neuburger, 2019).

What is the current impression of Sharing Economy from a freelancer`s perspective?

For the workers, the first and foremost aspect is the flexibility to decide how much and when they work (Rosenblat, 2016). Hence, many people who work in companies such as Uber and Lyft can be found using these platforms as their secondary source of income outside of their professional employment (Rosenblat, 2016). These individuals are less likely to be effected by reduction rates caused by updates in earning models of these ride sharing platforms as they are not dependent on these platforms as a primary source of income (Rosenblat, 2016).

On the other hand, full time drivers who depend on these platforms as their main source of income are motivated due to their investments such as a proper vehicle which is within company guidelines (Rosenblat, 2016). However, since the work depends solely on demand and that determines what one earns, the drivers are in an insecure position regarding their

income (Rosenblat, 2016). A common experience among the drivers is continuous update of earning models (Rosenblat, 2016). Many drivers start from a positive perspective and they are very satisfied from the beginning, however, as time goes on and the company`s constantly changing earning models result in a negative outcome regarding income and the drivers lose trust overtime (Rosenblat, 2016). Moreover, casual drivers who use the platforms as a

secondary source of income are a threat for full time drivers as the level of demand decreases due to higher number of drivers (Rosenblat, 2016).

Another group of people that takes advantage of these ride sharing platforms are people with lack of higher education or criminal record which lowers their chances of finding a job

(Rosenblat, 2016).

The above information shows that there are varied impressions of these platforms in the sharing economy and the people who seem to benefit the most are the casual workers who use the platforms as their secondary source of income (Rosenblat, 2016).

Effects to currently existing systems:

In terms of Uber for example, the industry which is certainly effected is the Taxi industry which has forced many taxi businesses to innovate and be more competitive (Taxiinsurer, n.d.).

According to the writer, Edward Ericson Jr, the business models of these ride sharing platforms are not concerned with drivers making a living and they are no better than a regular taxi for drivers (Zaleksi, 2015). These drivers are considered as micro entrepreneurs and the platform takes around 20% of their earning while the drivers are not entitled to any kind of benefits (Zaleksi, 2015).