Regulating the Sharing Economy in India: Assessing the Need for Government Intervention to Ensure Fair Practices and Consumer Protection

Abstract

The sharing economy in India has evolved, and is fast redefining traditional business paradigms and consumer behavior. It enables g individuals to leverage underutilized assets, and thus encourage innovation and entrepreneurial spirit among various socio-economic groups. This phenomenon is evidently visible particularly in urban areas, where rapid urbanization and population growth has generated demand for accessible services. Fueled by advancements in technology and a growing internet user base, platforms such as Ola and Zomato have revolutionized transportation and food delivery services. This shift reflects a broader trend seen globally, where the sharing economy leverages information technology to optimize resources (Yi-Hung Ma & Haoran Zhang, 2019). This model has evolved in India not only providing the economic opportunities but has indirectly addressed the underlying social needs and opportunity to used underutilized resources. However, this rapid growth has raised concerns regarding regulatory frameworks and fairness, akin to challenges faced by similar services worldwide, such as Airbnb and Uber, which have been scrutinized for their impacts on local economies and compliance with existing regulation. With increasing number of platforms, it becomes essential for Indian policymakers to strike a balance between fostering innovation and ensuring consumer protection and equity.