The Role of the Sharing Economy in a Post-AI World: A Solution for a Changing Economy

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Author: Roann Junio-Hartmann | CEO, Cobber

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AI is expected to displace millions of jobs across industries, from manufacturing to customer service. In fact, a report by the McKinsey Global Institute suggests that up to 375 million workers worldwide may need to transition into new occupations by 2030 due to AI and automation (Manyika et al., 2017). This mass displacement of workers presents an enormous challenge for governments. Fewer jobs mean fewer taxpayers, and this directly impacts the revenue governments need to function. Without these critical revenues, funding for essential public services such as healthcare, infrastructure, and education will dwindle.

But more than just reduced revenue, governments will struggle to maintain the economic balance required to fund large-scale projects and innovations, such as space exploration, scientific research, and climate initiatives. To remain sustainable, our economic model needs new ways to ensure that people are earning income and contributing to the system, even as AI takes over more traditional roles.

The Sharing Economy as a Lifeline

This is where the sharing economy steps in as a vital part of the solution. Platforms like Cobber, which facilitate gig-based work and peer-to-peer transactions, provide individuals with the opportunity to earn income on their own terms. For example, Cobber enables people with vehicles to perform secondhand furniture deliveries, offering flexible income streams that can serve as a primary or supplementary source of earnings.

The World Economic Forum points out that the sharing economy is reshaping labor markets by allowing individuals to engage in decentralized, flexible work (WEF, 2017). For workers who have been displaced by AI, the sharing economy offers a lifeline, empowering them to remain economically active. On top of that, gig workers on platforms like Cobber pay taxes on their earnings, which helps maintain the tax base that governments need to fund public services. In this way, Cobber offers a micro-entrepreneurship model where workers continue to participate in the economy while adapting to the changing job market.

Supporting Local Economies and Sustainability

One of the biggest strengths of the sharing economy is its ability to stimulate local economies. By focusing on local, peer-to-peer interactions, platforms like Cobber keep money circulating within communities. A report by PwC predicts that the sharing economy could generate $335 billion in global revenue by 2025, driven by services in sectors like transportation, tourism, and more (PwC, 2015). These local transactions contribute to regional economies, which in turn alleviates pressure on public resources and keeps people engaged in meaningful work.

Additionally, Cobber supports environmental sustainability by promoting the reuse of secondhand furniture. According to the Ellen MacArthur Foundation (2013), adopting a circular economy model — where goods are reused, repurposed, or recycled — can drastically reduce waste and lower environmental impact. In doing so, Cobber aligns itself with government sustainability goals, reducing landfill use and alleviating costs related to waste management.

Decentralizing Economic Power

A key feature of the sharing economy is its ability to decentralize economic power. Instead of concentrating wealth in the hands of a few large corporations, platforms like Cobber empower individuals to monetize their own assets, such as vehicles and services. Sundararajan (2016) highlights how the sharing economy democratizes access to economic opportunities, especially for those who may not fit into traditional employment models.

Cobber allows people from various backgrounds to participate in the economy, whether they’re full-time delivery drivers or simply looking to supplement their income with gig work. This model is vital in reducing economic inequality, as it offers more inclusive opportunities for individuals who may be vulnerable to job displacement from AI.

Adapting to the Post-AI Economy

In a world where AI dominates traditional labor markets, platforms like Cobber offer a practical bridge for individuals transitioning to new jobs or reskilling. Platforms such as Airbnb have provided a financial safety net for individuals affected by economic downturns, and Cobber can do the same for those affected by AI-driven unemployment (Zervas, Proserpio, and Byers, 2017).

Cobber enables individuals to monetize idle assets — like their vehicles — turning them into income-generating resources. This flexibility helps people adapt to a post-AI world, where steady jobs may be scarce, but gig work offers a viable alternative.

Sustaining Government Revenues

In a post-AI world, the sharing economy can help sustain government revenues by keeping gig workers economically active. Platforms like Cobber ensure that independent contractors pay taxes on their earnings, which keeps funds flowing into public coffers. While this may not replace traditional payroll taxes, it does provide governments with a new revenue stream to support public services (Sundararajan, 2016).

Governments may also need to adapt their policies to support and regulate the gig economy, ensuring that workers have access to healthcare, pensions, and other benefits traditionally provided by employers. By doing so, they can create a more resilient labor market that balances the needs of workers, platforms, and public institutions.

A Path Forward

As AI continues to transform industries and disrupt labor markets, the sharing economy offers a solution that keeps people engaged, local economies thriving, and governments funded. Platforms like Cobber allow for flexible income opportunities, support sustainability, and provide a way for workers to contribute to the economy, even in a world dominated by AI.

In the end, the sharing economy isn’t just about creating more jobs — it’s about reshaping how we think about work in a post-AI world. By embracing platforms like Cobber, we can ensure that this transformation benefits everyone, creating a resilient, adaptable economy that works for all.

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References

Ellen MacArthur Foundation (2013) Towards the Circular Economy Vol. 1: Economic and Business Rationale for an Accelerated Transition. Available at: ellenmacarthurfoundation.org (Accessed: 01 October 2024).

Manyika, J., Chui, M., Miremadi, M., Bughin, J., George, K., Willmott, P. and Dewhurst, M. (2017) A Future that Works: Automation, Employment, and Productivity. McKinsey Global Institute. Available at: mckinsey.com (Accessed: 01 October 2024).

PwC (2015) The Sharing Economy: Consumer Intelligence Series. PricewaterhouseCoopers. Available at: pwc.com (Accessed: 01 October 2024).

Sundararajan, A. (2016) The Sharing Economy: The End of Employment and the Rise of Crowd-Based Capitalism. Cambridge, MA: MIT Press.

World Economic Forum (2017) The Future of Jobs and Skills in the Middle East and North Africa: Preparing the Region for the Fourth Industrial Revolution. Available at: weforum.org (Accessed: 01 October 2024).

Zervas, G., Proserpio, D., & Byers, J. W. (2017) ‘The Rise of the Sharing Economy: Estimating the Impact of Airbnb on the Hotel Industry’, Journal of Marketing Research, 54(5), pp. 687–705.