Prospects and challenges of sharing economy for the public sector

The sharing economy entails peer-to-peer exchanges for renting goods and services utilizing the Internet. In this paper, we critically examine the sharing economy's prospects and challenges for public sector, and explore the policy responses to the sharing economy. The sharing economy is innovative in capitalizing on underutilized assets using Internet platforms, but has adverse impacts as well (e.g. it could exacerbate inequality). As users, public agencies could adapt internal procurement processes focused on renting, and partner with sharing platforms to complement and supplement public services. As regulators, government agencies have a paradoxical role to maintain the sharing economy's innovation while addressing its downsides. Our study shows mixed policy reactions to sharing economy in three prominent sectors (mobility services, accommodation sharing, and gig labor). We suggest a research agenda that e-government scholars should focus on in order to critically examine the different facets of the emerging sharing economy.