With the sharing economy becoming more popular, we look at how fractional ownership, including the business models and regulations associated with it, takes things further in Australia.
In the last decade, digital disruption has given rise to the prevalence of the sharing economy and “uberisation”, the concept of service-on-demand derived from ride-share giant, Uber. Asset ownership now has a new meaning in the gig economy.
One no longer has to own an asset to avail themselves of its benefits whenever one wishes. On-demand cars and vacation resorts that were once beyond reach for an average person have now become easily accessible through several platforms, such as Airbnb and Uber. Businesses and their customers have benefitted greatly from the affordability and flexibility that this model offers. However, it was only a matter of time before a newer and better business model arrived on the scene to further disrupt this once-disruptive service.
If the 2010s belonged to shared services and time ownership, the 2020s will be swept away by fractional ownership. This model takes a further leap forward in making assets accessible by offering all the advantages of a service on-demand model alongside the benefits of the partial ownership of the asset.
Fractional ownership provides the benefits of flexibility and affordability along with ownership rights of the asset. It is, in essence, a collaborative consumption, where multiple owners share the benefits, such as usage, income sharing, and priority access.
There are business models and regulations associated with fractional ownership in Australia. To know who the current market players are and what are the capabilities, technological and operational, required to build a business around fractional ownership, read our eBook.