Stepping up the game: The role of innovation in the sharing economy

In addition to that, many sharing platforms are also technologically innovative or apply a tested concept in a new setting. Increased competition may result in even more innovation in order to keep customers satisfied and boost the benefit these derive from participating in the sharing economy. However, in most affected markets, there is no level playing field yet between the established incumbents and the new sharing platform entrants. This calls for urgent action on the side of policy-makers to foster innovation in the sharing economy while enabling fair competition.