The Sharing Economy Is Upon Us, So Embrace It.
My boss recently referred to Ridesharing as modern day hitch hiking, so this one's for him.
So he's right in a way, Ridesharing replaces hitch hiking with a more efficient, safe and effective approach. But what many maybe missing is that it's all off the back of a cultural change that is occuring in the developed world.
We no longer feel a need to have to own everything and for the people who do, if it's not in use they generally don't mind lending it out.
The point here is that we are trained to be a consumer society, we've all been told by retail, marketing and manufacturing that we need this, infact we don't and self storage is a massive business as a result of it. That's right they are storing the crap we bought and will probably never use. It doesn't stop there, we now find ourselves shelling out more money every year just to store our unused items.
The cost effectivness of ownership simply does not exist, unless you use the item day in and day out for a long period of time. One of my favourite examples is the popular weekend driver or the second car owner.
All you need to do is stop and do the calculations (Total Cost Of Product / Days Products it's used in it's lifetime)
We took a very modest Mazda 3 for $25,000, it's purchased on a standard 6% p.a car loan over 5 years. so it's $32,500 to buy the car, we typically spend $27,455 in fuel, insurance, tyres, maintenance over 5 years. Total Cost of Ownership is $59,955 over a 5 year period.
Now we take the fact the car gets used 2 times a week over the next 5 years. A total of 520 times in 5 years. Calculation (59,955 / 520) = $115.29 per day it's driven on the weekend.
Now ask yourself can you get to your destination on saturday and sunday for under $230.58. Truth is you could hire a car over the weekend for around $58 and the best thing is that if the car has an issue it's not your problem.
We all need to ease up on our consumer behaviour's and think about the bottom line, the lifetime of the product, how much environmental damage is being done to manufacture, deliver and then eventually dispose of the product. Sometimes it is simply smarter to lease the item when needed.
This is where a sharing society comes into play. We are already seeing houses shared out when not occupied, cars being shared, car rides being shared, I even recently read a complaint from a restauranteer where his customers were sharing desserts.
A sharing society is now upon us, and we need to embrace this. It will help reduce the clutter, damage to the environment and solve a lot of the issues we currently experience. Let's stop digging the hole deeper.
If we consider Tony Abbott and the Australian Government's solution to congested roads, it was to build more roads. Im sorry, we are heading towards over development, and there is a simple fact that if you build more this will allow for more cars but human nature means we will only add more cars and create the same problem all over again a few years down the track.
It's just a vicious circle that will only keep happening until we learn to break the cycle.
Car Relocations
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Date Published: 14/08/2014
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