Shared folders were the most requested feature asked for by Google Docs users. Shared folders allow users of Google Docs to work cooperatively on projects, with real-time updates to the documents they share. The advantage for Google Docs users is the feature being internal to the application suite, eliminating the need to rely on outside solutions, such as DropBox.
According to Bangaru: “To share a group of items, all you have to do is put them all into a folder and share the folder. As you'd expect, if you add an item to a shared folder, it will automatically be shared and if you add someone to an existing shared folder, they will instantly get access to all of the folder's content.”