With their home or their car ride with,

With constantly growing economies thriving
to achieve their best, every company or business tries to stay on the edge of
the market for which innovation plays a significant role. Bringing up
innovative ideas that can make a firm better than it’s competitors is something
every company aims at these days. With the Innovators
magazine’s article, ‘Intrapreneurship is
taking off’ the author gives an example
of Daimler, a German automotive company that accentuates
the importance of providing an ideal environment to its employees for them to
innovate better ideas and innovations for the future growth of the company (Innovators Magazine, 2017). While the resources
being limited to every enterprise in an economy, it tries using it in the best efficient
way it can ever use. Over the past decade, an innovation of sharing what you have
with others or the sharing economy has been in existence and has been rapidly
growing ever since in the economies all over the world. The sharing economy has
also impacted the North American economy enormously and both in positive and
negative ways. With sharing everything from their apartments to cars, people
are earning extra incomes by putting the resources to their best use. Also,
quick help apps to the basic tasks like TaskRabbit has reported tripling of
temporary job postings which has further accelerated the growth of the economy. (Roger Yu USA TODAY, 2012). People put their
resources to the most efficient use and earn easy money in a sharing economy.
RelayRides reports that some of their car owners earn as much as $250 a month
on average (Roger
Yu USA TODAY, 2012)
Technology too has played a major part in a sharing economy. Where customers
can have a background check or at least look at who they are sharing their home
or their car ride with, it has helped customers to feel safer. Also, many apps
like Zimride makes the clients sign up to their accounts through linking it
with their Facebook accounts, making it easier for people to trace the frauds who
might have previously done a wrong act that might have left an imprint on the
internet. (Roger
Yu USA TODAY, 2012).
 It has also helped in knowing a person
more than just a car ride and has also brought like-minded people to connect personally
too.  While the shared economy has helped
in generating extra incomes and setting up many new startups like ZimRide and
RelayRides for car sharing or Airbnb for shared accommodations, it has some
side effects to it. Where apps like these are being preferred by the clients as
they save up the cost of they might have incurred while travelling in taxis, it
has seriously affected the traditional businesses like that of taxis which
struggle to find clients due to a higher price they charge and with the
availability of cheaper alternatives to their services. Policymakers can intervene
at this point to protect interests of private taxi owners. They need to create
a subtle but crucial balance in the economy where both the interests of the consumers
who can enjoy the services at cheaper rates and taxi drivers and shared economy
businesses can be protected. The other side effect is that sometimes the
equipment or the property that is being rented out for sharing is at the stake
of being damaged by others. To solve this problem to some extent, the insurance
companies like Lloyd’s of London has partnered with Airbnb to cover up more and
more of the properties that people wish to share (Roger Yu USA TODAY, 2012). Overall, companies
or startups that were started with the sharing economy strategy might not be
earning large amounts of profits right now, but they are still able to cover up
their costs enough to establish themselves in the markets. Talking about the
overall impact of the shared economy in the North American economy, the
benefits it brings with itself, in the end, outweigh the side effects it has.
While it has excellently helped in boosting the income generation in the
economy by making people use their money to the best optimum use they can ever
put to instead of using it for something they don’t use that often, it has
helped in creating additional money in the circular flow of income in the
economy which further generates additional incomes for the people to invest. It
all leads the economy to be better off in the end.