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New DOC Report Provides First Government Definition of Digital Matching Economy
On June 3, the Department of Commerce’s Economics & Statistics Administration (ESA) released Digital Matching Firms: A New Definition in the 'Sharing Economy' Space. In the new report, the ESA provides the first government definition of digital matching firms (e.g., Uber, Lyft, AirBnb, Homeway) – companies that use Internet and smartphone-enabled apps to match service providers with consumers, help ensure trust and quality assurance via peer-rating services, and rely on flexible service providers who, when necessary, use their own assets. In addition to defining digital matching firms, the report provides an initial assessment of its size and scope of the digital matching firms (gathered from several publically available sources) including:
- Digital matching companies had global revenues of about $15 billion in 2014;
- 8 percent of all adults have participated in some form of automotive sharing;
- 9 percent of independent workers provide services through on-demand economy platforms;
- 17 percent of those providing services through on-demand platforms reported earning $75,000 or more; and,
- By 2025, digital matching companies’ global revenues could grow to over $335 billion.
The report also provides an examination of its potential effect on consumers and service providers as well as benefits and challenges emerging from the growth of digital matching firms. Read the report…