Rethinking Ownership with Sharing Economy Reshaping Circular Business Models and Sustainability

Cities are changing fast. More people are moving to urban centres. Space is shrinking. Resources are under pressure. In such a world, the old model of “own it” is losing ground , and a new model, rooted in sharing, leasing and access, is rising fast. The sharing economy (SE), once a fringe concept, is maturing into a powerful engine for sustainable business, circular economy practices and new forms of value creation.

Recent open‑access research offers a solid foundation for this shift , supplying data, frameworks and cautionary advice for those looking to build or analyze sharing / rental‑based businesses.

The Rise (and Scale) of Sharing Economy Models

What exactly do we mean by “sharing economy”? According to a comprehensive review published in 2023, SE ecosystems comprise various actors , not just users and providers, but a layered network of intermediaries, digital platforms, and even governing bodies.

The authors classify primary participants into:

• Product Providers (PP), owning assets (furniture, equipment, vehicles, etc.) to be shared or rented.
• Service Providers (SP), offering services (maintenance, delivery, logistics, etc.).
• Mediators, technology platforms or intermediaries facilitating transactions.
• Customers, both new and returning, who access the shared assets.

Secondary participants include local and national governments (regulators, policy makers) , who play an indirect but important role in shaping the ecosystem.

This expansive view is critical: sharing isn’t just “peer to peer” , it’s a complex socio‑economic ecosystem enabled by digital platforms, trust mechanisms, and regulatory frameworks.

A separate 2023 bibliometric study analysing SE business models (SEBMs) found that the field has expanded dramatically since the early 2010s , with nearly a thousand studies between 2014–2022, showing increasing interest from academics, businesses and policymakers alike.

One telling figure from these studies: a report referenced in the 2023 review notes that sharing‑economy related business could grow by 2,133% in 12 years , underscoring the rapid expansion and adoption potential of sharing models globally.

What Sharing + Circular Economy Looks Like, Real‑World & Conceptual Models

At its core, the circular economy advocates for reuse, resource‑efficiency and extension of product life , instead of the linear “make‑use‑dispose” model. When combined with sharing economy, this becomes powerful.

Take, for example, a city apartment that keeps evolving. Instead of buying new furniture for every new living situation or renovation, a family or a startup might rent modular furniture from a rental platform. When they move or upgrade, the furniture returns to the pool, is refurbished, and rented again. A single piece of furniture serves many users over time, reducing waste, resource extraction, and overconsumption.

This model, access over ownership, is explored in business‑model research under SE contexts. A 2025 paper systematically reviews business‑model innovations across shared office spaces, equipment rental, shared mobility, and more; it highlights how rental/lease-based platforms optimize supply–demand matching, improve asset utilization, and deliver flexible, affordable access to users.

In a circular‑economy context, such models can extend the service life of products (furniture, tools, appliances), minimize idle time, and reduce waste , aligning business objectives with environmental sustainability.

Moreover, digital technologies play a critical role. According to the 2023 review, digital sharing platforms enable efficient coordination between providers, mediators and customers; improve transparency; and facilitate market scale , all without the inefficiencies of traditional ownership-based models.

Why Sharing + Circular Models Matter, For Business, Sustainability, and Society

1. Better Asset Utilization and Lower Entry Cost
Shared‑use lowers the cost barrier for consumers and businesses. A startup needing high‑end equipment for short‑term projects can rent rather than buy; a young professional can rent furniture instead of paying up-front. This model democratizes access to quality resources, broadening market reach.

2. Environmental Impact & Waste Reduction
By extending product life through reuse and shared cycles, sharing economy platforms align with circular‑economy goals , less production pressure, fewer raw materials consumed, reduced waste generation, and lower environmental footprint.

3. Flexibility and Adaptability
In a rapidly changing world , urban migration, changing careers, dynamic lifestyles , access-based models offer flexibility. As people move, upgrade, or adjust needs, they can flexibly rent what they need, when they need it.

4. Economic Inclusion and New Business Opportunities
Sharing economy platforms open space for SMEs, small providers, and enterprising individuals , they can list underused assets or provide services and tap into global networks. This model often requires lower capital, but offers scalable potential , ideal for emerging markets or developing economies.

Challenges, Trade-Offs & Critical Considerations

The sharing economy isn’t a silver bullet. Researchers warn about several caveats.

• Efficiency vs. Rebound Effect: Sharing doesn’t automatically guarantee resource efficiency. For instance, if renting becomes so cheap and easy that consumption increases , more frequent rentals, more deliveries , it could result in higher resource use overall. A recent 2025 critical paper raises just that question: “Is the sharing economy really sharing?” It examines possible rebound effects, market-structure distortions, and sustainability challenges. (Advances in Social Behavior Research)
• Inequality and Access Issues: Empirical studies show that in many platform‑based sharing systems (like short‑term rental markets), income and socio‑economic status significantly influence who participates as provider and who benefits the most. For example, an older study on a platform similar to short-term rentals found that wealthier, better‑educated hosts dominated listings , suggesting that sharing platforms may reinforce existing inequalities rather than dissolve them. (arXiv)
• Trust, Reputation & Platform Governance: Shared usage works only if users trust each other and the platform. Research shows that trust and reputation information (“digital identity” of providers) strongly influences user decisions , from choosing a host to deciding whether to rent. In an experimental study mimicking a short‑stay rental platform, even minimal trust/reputation signals significantly raised the likelihood of users engaging in rental. (arXiv)
• Regulation and Policy Gaps: Many sharing economy models operate in regulatory gray zones , rental services, equipment sharing, co-living, leasing , and governments are often slow to adapt. The 2023 SE‑ecosystem review notes that regulators typically sit at the “secondary” level of ecosystem participants , but their policies (or the lack thereof) can dramatically impact sustainability, fairness and long-term viability. (MDPI)

What This Means for India (and Emerging Market Contexts)

For countries like India , where urban growth is accelerating, home & office space is at a premium, and resource constraints are real , the sharing + circular model offers immense promise.

• Furniture / Equipment Rentals: Many urban families, young professionals, co‑living residents, small startups could benefit from rental of furniture, appliances, office equipment. This reduces upfront investment and under‑utilization of assets while promoting reuse.
• Flexible Mobility & Transportation Rentals: Shared mobility (bikes, e‑scooters, short‑term vehicle rentals) , though needing local regulation , holds potential to reduce congestion, reduce need for individual ownership, and lower environmental footprint.
• SMEs and Micro‑Entrepreneurs: For small businesses or freelancers, renting equipment or infrastructure rather than purchasing can lower entry barrier. A shared‑use model helps optimize costs and asset utilization.
• Circular Economy & Waste Minimization: Given India’s environmental challenges, sharing models that emphasize reuse, refurbishment and resource efficiency can align with ESG goals, urban sustainability goals and responsible consumption.

However, for success, India would need: clear regulation, trust-building mechanisms, robust digital platforms and education to shift mindsets from “owning equals success” to “access equals smart living.”

Toward a Framework: How to Build a Sustainable Sharing / Rental Business

Based on research insights, here are some guiding principles for entrepreneurs or platforms looking to leverage sharing + circular economy models:

• Segment clearly , understand participants
Use the categorization from the 2023 SE‑ecosystem review: distinguish between product providers, service providers, mediators (platforms), customers (new vs existing), and consider the role of regulators. (MDPI)

• Use technology to build trust & transparency
Digital identity, ratings, reputation systems and transparent pricing can significantly influence adoption. As shown in a 2018 experimental study , even minimal trust signals increased rental likelihood. (arXiv)

• Optimize asset‑use cycles & supply‑demand matching
Leverage data, algorithms or smart asset‑management to ensure assets are used efficiently, rotated, maintained, refurbished , maximizing lifecycle value (not just first‑user value). This reduces waste and increases ROI per asset.

• Price & incentive design matters
Rental platforms should think not just about one-time rentals but subscription, membership, flexible leases, loyalty , to improve utilization, user retention, and predictability. A 2025 review identified innovations in profit models and supply–demand matching as key areas in sharing‑economy business‑model evolution. (Clausius Press)

• Think circular & sustainable by design
Encourage refurbishment, reuse, sharing rather than disposal. Design services around access, not ownership. For example: furniture-as-a-service, equipment lease with maintenance, return-and‑refurbish systems , in line with circular economy principles.

• Engage policy, community & public stakeholders
Work with local governments, communities, regulators to build supportive ecosystems. Regulatory clarity, urban policies, waste‑management infrastructure, and community acceptance are critical for long-term sustainability. The SE‑ecosystem review highlights the role of governments (as secondary participants) , but underscores their indirect influence on the viability and sustainability of sharing models. (MDPI)

A Balanced View , Hope, but Also Realism

While the promise of sharing + circular models is real, it’s important not to romanticize the sharing economy as an automatic panacea. Critiques , including a recent 2025 paper , warn about rebound effects, market distortions, inequality in participation, and possible over‑consumption if sharing makes access easier than ever. (Advances in Social Behavior Research)

Moreover, cultural and behavioral change is often more difficult than building a platform. Many people still view ownership as security or status. Without proper trust-building, transparency, and education, sharing platforms may struggle , or become just another “rental economy” with limited impact.

But research suggests that if thoughtfully designed, sharing economy platforms , particularly in combination with circular economy practices , can offer a more sustainable, inclusive, and resource-efficient future.

The Future Is Shared, Not Owned

As urbanization, resource constraints, and environmental pressures intensify, the old paradigm of ownership , buy once, use, discard , is increasingly unsustainable. The sharing economy, powered by digital platforms, community-based trust and circular‑economy thinking, offers a credible alternative.

For entrepreneurs, businesses, policy makers and innovators , embracing sharing + circular models isn’t just about cost or convenience. It’s about responsibility, sustainability, and reinvention. It’s about creating ecosystems , where assets serve multiple users, waste is minimized, and value flows to communities rather than being locked in idle ownership.

If we get it right, the result could be a new economic model , one where access trumps ownership, where reuse becomes the norm, and where business success aligns with ecological balance and social good.

For India and emerging markets, this could be transformative: smarter cities, leaner business models, empowered consumers , and a future that’s shared.

References / Key Papers (all open‑access):

• Abdalla, Samar; Amankwah-Amoah, Joseph; Badewi, Amgad (2023). “Sharing‑Economy Ecosystem: A Comprehensive Review and Future Research Directions.” Sustainability, 15(3), 2145. DOI: 10.3390/su15032145 (MDPI)
• Duan, Carson (2023). “A State-of-the-Art Review of Sharing Economy Business Models and a Forecast of Future Research Directions for Sustainable Development: A Bibliometric Analysis Approach.” Sustainability, 15(5), 4568. DOI: 10.3390/su15054568 (MDPI)
• Zhou, Liying; Luo, Renli (2025). “Business Model Innovation under the Sharing Economy: A Comprehensive Review.” [Open Access]. DOI: 10.23977/acccm.2025.070310 (Clausius Press)
• Wang, Zixin (2025). “Is the Sharing Economy Really Sharing? , An Analysis of Resource Efficiency, Market Structure and Growth Sustainability.” Advances in Economics, Management and Political Sciences. (Advances in Social Behavior Research)
• Zloteanu, Mircea; Harvey, Nigel; Tuckett, David; Livan, Giacomo (2018). “Digital Identity: The Effect of Trust and Reputation Information on User Judgement in the Sharing Economy.” arXiv. (arXiv)