Practice Tests
IELTS Reading (AC) Task 1 #140

A. The sharing economy is an economic model defined as a peer-to-peer (P2P) based activity of acquiring, providing, or sharing access to goods and services that are often facilitated by a community-based online platform. This model leverages technology to connect individuals who have underutilised assets or skills with those who need them, disrupting traditional business models in the process. Prominent examples include platforms like Airbnb, which allows people to rent out their spare rooms or homes, and Uber, which connects drivers with passengers.

B. The rise of the sharing economy has been fuelled by several factors, including widespread internet and smartphone adoption, the development of secure online payment systems, and a cultural shift towards valuing access over ownership. For consumers, it often provides more convenient, affordable, and personalised options compared to traditional services. For providers, it offers a flexible way to earn income from assets they already own, such as a car or a house, or by monetising their free time.

C. This economic model promotes more efficient resource utilisation. By enabling the sharing of assets that would otherwise sit idle, it has the potential to reduce waste and decrease the overall demand for new products. Proponents argue that this can lead to positive environmental outcomes, such as fewer cars on the road if ride-sharing becomes more common. It also fosters a sense of community and trust between strangers, as many platforms rely on user-based rating and review systems.

D. Despite its benefits, the sharing economy has also faced significant criticism and regulatory challenges. A major point of contention is the classification of service providers, who are typically treated as independent contractors rather than employees, meaning they lack benefits like health insurance, paid sick leave, and minimum wage protections. Additionally, platforms have been criticised for their impact on traditional industries, such as the hotel and taxi sectors, and for contributing to issues like rising housing costs in some cities. Balancing the innovation of the sharing economy with the need for fair labour practices and consumer protection remains a key challenge for policymakers.