The People tend to focus on the positive

The global
economy has caused a significant increase in competition and a rise in the
number of digital platforms, which according to Saariko (2017) are used in
order to be able to accomplish complexity and stimulate development. This rise
in number of digital platforms has caused a transformation of the economy into
a digital economy with the use of advanced digital technologies and the unconventional
way of matching supply and demand (Gururaj, 2015). A key aspect
of digital platforms is that the platforms are merely selling access to the
software, rather than producing or selling their products or content
themselves.

            Digital
platforms have also created the foundation for the sharing economy. There is a
lot of controversy about this term and there is no generally accepted
definition. Katz (2015 defines it as an online intermediate that acts as a market
for people-to-people services and facilitates exchanges by lowering transaction
costs.
            An
example of a digital platform that participates in the sharing economy is DogVacay,
founded by Aaron Hirschhorn and his wife, Karine Nissim-Hirschhorn. DogVacay is
an online service connecting pet owners to people who are willing to look after
pets (Henry, 2017). It started in L.A in March 2012, but it quickly expanded to
cities all over the U.S.A and Canada.

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People
tend to  focus on the positive aspects
that are related to the formation of digital platforms and the upswing of the sharing
economy, however there are several characteristic controversies. One such a
controversy would be that digital platforms are difficult to regulate. The
sharing economy has enabled a significant rise of non-professional and
non-regulated service providers. DogVacay also operates on this principle, since
the pet sitters can all easily sign up online, without having to actually apply
for the job. In addition, since these platforms are difficult to regulate, it
is easier to bypass taxes. This has caused that industry incumbents complain
about losing revenues (Rauch & Schleicher, 2015). However, it is uncertain how
the formation of digital platforms like DogVacay have influenced competition in
the traditional markets.
            This
essay will focus on how successful DogVacay was in disrupting the industry
market. Firstly, it will concentrate on the DogVacay platform in greater
detail. Secondly, it will discuss DogVacay’s role in the sharing economy. Thirdly,
it will focus on competition in the market. It ends with a conclusion. This
analysis will be done using a literature review. 

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