An analysis of the opportunities and challenges of the sharing economy market in South Africa

The lingering global financial downturn and our innovative capability when under pressure, has created new demands through the sharing economy market, the most popular brands being Airbnb and Uber. Access to information technology and internet applications on mobile phones accelerated the adoption rate of this latest technological 'novelty', albeit slowly in Africa. Lawmakers have failed to regulate the emergence of micro-entrepreneurs, the increasing use of shared services and the often-violent backlash from traditional providers. This empirical paper analyses the opportunities and challenges of the sharing economy in South Africa and contributes to theory and practical knowledge in the field. Interviews with 26 stakeholders confirmed that while the sharing economy offers entrepreneurs opportunities and users convenience and choices, innovative programs such as 'homeshare' (Airbnb) and 'rideshare' (Uber) are challenged by violent competitive threats. However, if carefully balanced, the sharing economy can create harmony and growth opportunities.