Sharing economy in Japan

The sharing economy, also known as the collaborative economy or peer-to-peer economy, represents a socio-economic system wherein individuals or businesses engage in the shared utilization of goods, services, resources, or skills, often through the mediation of digital platforms or technology. This paradigm places a strong emphasis on optimizing the use of underutilized assets, championing sustainability, and fostering community interaction.

Within the sharing economy, individuals can opt to lease their residences (e.g., via Airbnb), partake in shared transportation (e.g., Uber or Lyft), offer their professional expertise (e.g., through freelancing platforms like Upwork), or even engage in the sharing of tools and equipment (e.g., tool libraries). This transformative approach challenges conventional notions of ownership and consumption by prioritizing access over possession, frequently leading to financial savings and reduced environmental footprints.

The sharing economy can give rise to fresh income avenues for individuals, enhance resource efficiency, and cultivate a sense of community. Nevertheless, it also brings forth questions surrounding regulatory frameworks, labor rights, and the establishment of trust among participants. Striking a balance between these opportunities and challenges is pivotal in comprehending and influencing the societal impact of the sharing economy.

Merits of a sharing economy

There are a number of advantages to creating a sharing economy.

Reduced resource consumption

Embracing the principles of the sharing economy can have profound environmental benefits. When we share assets and resources, we inherently maximize their utilization. This practice directly correlates with responsible consumption and production, curbing overconsumption and minimizing waste. In a world grappling with environmental challenges, this reduction in resource consumption is a promising step towards a more sustainable future. It aligns with global efforts to combat climate change and preserve our ecosystems, which are vital for the well-being of current and future generations.

Environmental benefits

One of the most significant merits of the sharing economy is its potential to reduce our environmental footprint. By encouraging the efficient use of resources, sharing inherently leads to lower carbon emissions and less strain on our planet. It supports initiatives aimed at addressing climate change, which is one of the most pressing global issues. Additionally, it aids in the preservation of our oceans, wildlife, and natural habitats. In a time when environmental conservation is paramount, the sharing economy offers a practical path toward achieving these goals.

Economic inclusion

Beyond its environmental advantages, the sharing economy holds great promise in promoting economic inclusion. Sharing platforms create income opportunities for a diverse array of individuals, including those who might face barriers in traditional job markets. This is especially significant in the context of reducing poverty and fostering decent work and economic growth. The sharing economy empowers people to take control of their financial destinies, contributing to more equitable economic landscapes.

Empowerment of marginalized groups

Another compelling aspect of the sharing economy is its potential to empower marginalized communities. Sharing platforms offer avenues for entrepreneurship and economic independence, which can be particularly transformative for disadvantaged groups. By providing opportunities for economic self-sufficiency, the sharing economy aligns with the principles of gender equality and reduced inequalities. It helps bridge the economic gaps that persist in our societies, promoting a more inclusive and just world.

But there are also demerits to a sharing economy

Regulatory uncertainty

A significant challenge within the sharing economy lies in its regulatory ambiguity. Sharing platforms often operate in a legal gray area, leaving room for disputes and uncertainty. Existing regulations may not adequately address the unique dynamics of these platforms, giving rise to concerns related to safety standards, taxation, and fair competition. This lack of clarity can hinder both providers and users, making it difficult to navigate the landscape with confidence. To fully harness the potential of the sharing economy, addressing these regulatory issues is paramount, ensuring that it operates within a well-defined legal framework.

Labor rights concerns

In the sharing economy, where flexibility and independence are touted as benefits, there are concerns regarding labor rights. Workers engaged in sharing platforms, such as ride-sharing drivers or gig workers, often find themselves outside the traditional employment framework. This can result in precarious working conditions, limited access to essential benefits like healthcare, and job security concerns. As we explore the potential of the sharing economy, it’s crucial to address these labor rights challenges, striving for a more equitable and supportive environment for those who participate in it.

Uneven access

While the sharing economy offers many advantages, it’s important to recognize that not everyone has equal access to its benefits. Participation often requires access to smartphones and the internet, leaving out individuals without these resources. Furthermore, some sharing services may be concentrated in urban areas, limiting access for those in rural communities. Addressing these disparities is essential to ensure that the benefits of the sharing economy are accessible to a broader and more diverse population.

Environmental impact

Although the sharing economy can reduce resource consumption in some aspects, it is not without its environmental challenges. For instance, ride-sharing services may contribute to increased traffic congestion and environmental concerns in densely populated areas. Balancing the environmental advantages with potential drawbacks is crucial, requiring a comprehensive assessment of the impact of sharing economy practices on the environment and a commitment to mitigating any negative effects.

Organizations promoting sharing economy in Japan

Sharing Economy Association, Japan

The Sharing Economy Association, Japan (SEAJ), a non-profit founded in 2015, champions Japan’s sharing economy. With over 100 member companies, including Airbnb and Uber, it advocates deregulation, proposes policies, and fosters cooperation with stakeholders. SEAJ also issues the Sharing Economy Trust Mark for safety assurance, collaborates with local governments to create Sharing Cities, holds study sessions and networking events, and shares information through email and social media. It aims to create a favorable sharing economy environment and promote sustainable development in Japan.

Sharing Economy Promotion Office

The Sharing Economy Promotion Office, established in November 2016 under the leadership of the Government CIO within the Cabinet Secretariat’s IT Comprehensive Strategy Division, fulfills crucial roles in the promotion of Japan’s sharing economy. These roles encompass serving as an information and consultation hub, propagating self-imposed rules, facilitating communication with relevant government entities, introducing best practices, and driving initiatives aimed at sharing economy advancement. With an annual progress report, the office ensures the steady evolution of measures, including model guidelines, to foster the sharing economy’s growth and development.

Examples of a sharing economy in Japan

In Japan, a sharing economy is a model for solving some of the key issues in Japan.

airCloset

“airCloset” stands as a pioneering service that champions the ideals of a circular economy within the realm of fashion. It brilliantly orchestrates the seamless sharing of clothing, allowing these garments to embark on journeys from one wearer to the next, each new owner cherishing and extending their lifespan. What’s particularly enticing about airCloset is the enchanting prospect of discovering an entirely new facet of oneself, guided by the expertise of professional stylists who curate clothing that complements your unique style.

Furthermore, airCloset doesn’t stop at mere sharing; it has ingeniously designed a system that ensures every piece of clothing in circulation can find a second life, sidestepping incineration or landfilling. This sustainable commitment culminates in a vision of zero waste, achieved through multiple initiatives. These include the re-sharing of items that were gently tried on and returned, exclusive “Eco Sale” events for members to purchase previously rented items, the responsible separation of damaged clothing, and a remarkable reliance on recycled fiber boards known as “PANECO®,” crafted from a staggering 90% of discarded clothing waste. In essence, airCloset embodies the essence of sustainability and eco-consciousness, paving the way for a more responsible and fashionable future.

Learn more in a close-up interview with airCloset.

camcierge

camcierge, developed by Camp Jyoshi Inc., is an innovative app designed to revolutionize the camping experience. By combining the words “camp” and “concierge,” it offers a range of services aimed at simplifying and enhancing camping trips. Users can effortlessly reserve stylish camping sites, rent vehicles if needed, and even have their tents set up and taken down for them, making camping more accessible, especially for beginners and those who struggle with tent assembly.

One of its key features is the promotion of a sharing economy for camping gear. Camcierge encourages users to share camping equipment, such as tents, utensils, sleeping bags, and lamps, reducing the financial burden and environmental impact of owning rarely used items. The app offers a selection of stylish and appealing camping gear, making it an attractive option for users, particularly women.

ADDress

ADDress is a unique service that beckons digital nomads and travelers to reimagine their accommodation experiences in Japan. Offering the freedom to work and reside anywhere in the country, ADDress presents well-renovated houses complete with essential amenities like gas, electricity, and Wi-Fi, all for a remarkably affordable monthly fee.

This innovative platform operates akin to an Airbnb for extended stays, with a fixed monthly rate of 40,000 yen for members. An additional 20,000 yen extends this membership to a partner, making it an attractive proposition for both individuals and couples seeking flexible living arrangements.

Beyond its enticing offerings, ADDress is driven by a commitment to social good. As an initiative of the Koyu Foundation in Shintomi town, it aims to revolutionize lifestyles and work styles while addressing local challenges. By leveraging the sharing economy and making vacant houses available through a subscription model, ADDress not only meets the needs of homeowners struggling with empty properties but also contributes to regional revitalization and community building. This multifaceted approach aligns with the changing dynamics of modern work and living, offering a win-win solution for homeowners, digital nomads, and local communities alike.

Learn more about ADDress here!