inspiring route - sharing economy & collaborative consumption
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Everything you need to know today about the sharing economy. ["Inspiring Route" by Market Revolution is the way to discover and stay updated on new trends and business models] Market Revolution is a Futureberry projectTRANSCRIPT
11.07.2013
Stay Hungry, Stay Updated - Sharing economy
SHARING ECONOMY & COLLABORATIVE CONSUMPTION
Stay Hungry, Stay Updated - Sharing economy
Where does this story start?
Stay Hungry, Stay Updated - Sharing economy 4
Let me introduce you this guy...
Henry Ford
Stay Hungry, Stay Updated - Sharing economy
The “Model T” (1908)
The first mass-manufactured car
5
“No man making a good salary will be unable to own one”
Stay Hungry, Stay Updated - Sharing economy
3 pillars:
“I shop therefore I am”
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Ownership Accumulation Substitution
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OwnershipAn economic model based on
42th article
5th amendement{ }
Stay Hungry, Stay Updated - Sharing economy 8
Source: It's lavish bitch, 2013.
Stay Hungry, Stay Updated - Sharing economy
In the meanwhile, something was changing...
Stay Hungry, Stay Updated - Sharing economy
New economic model = new opportunities
The story of Frederic
10
Frederic Larson, he’s a 63 years old photographer, fired by SF Chronicle.
He decided to get the most of his 2 only resources: his house and his Prius.
He rents his home on Airbnb for $100 per night (12 days per month). He turns his Prius into a cab, via Lyft, earning $100 per night (4 nights a week).
Just like that he makes $3,000 per month.
He’s now seeking for a way to rent out his camera equipment.
Source: Forbes.com, February 2013.
http://www.linkedin.com/in/mysticalsanfranciscophoto
Stay Hungry, Stay Updated - Sharing economy
3 drivers
11
Source: The Collaborative Economy, Altimeter Group, May 2013.
Economic
• Economic Crisis• Unemployment• New generations debt load
Social
• Increasing population density• Drive for Sustainability• Desire for Community• Generational Altruism
Technology
• Internet becomes global• Mobile Devices and platform• Payment systems evolve• Social networking rise
Stay Hungry, Stay Updated - Sharing economy
What is sharing economy?
Stay Hungry, Stay Updated - Sharing economy
A set of practices and models that, through technology
and community, allow individuals and companies to
share access to products, services and experiences.
Stay Hungry, Stay Updated - Sharing economy
renting, exchanging, sharing
Old models reinvented for the future
14
Stay Hungry, Stay Updated - Sharing economy
Extract value from the asset we already have, physical or intangible, dividing them into space and time, in order to be “consumed” as a service
“As-a-service”
15
Source: Fastcompany, April 2011. The Economist, March 2013.
platforms which allow pricing, meeting and sharing.
Stay Hungry, Stay Updated - Sharing economy
Access
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Source: Forbes.com, January 2013.
“We’re moving from a world where we’re organized around
ownership to one organized around access
to assets”
Stay Hungry, Stay Updated - Sharing economy
Who are the “collaborative consumers”?
Stay Hungry, Stay Updated - Sharing economy
“They don’t buy newspapers; they grab and disseminate stories a la carte via Facebook and Twitter. They don’t buy DVD sets; they stream shows. They don’t buy CDs; they subscribe to music on services such as Spotify or Pandora”
The sharing economy’s early adopters
Millennials
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Source: Sunrun, Feb 2013.
They are the new generation of consumers and they are “culturally set up” to borrow, rent and share
Stay Hungry, Stay Updated - Sharing economy
- target: under 35 USA -
Millennials
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House owners
20
40
60
80
100
2007 2011
20
40
60
80
100
2007 2011
20
40
60
80
100
2001 2010
Car owners Credit Cards owners
40%33%
73%66%
50%
39%
The sharing economy’s early adopters
Source: Sunrun, Feb 2013.
Stay Hungry, Stay Updated - Sharing economy
“Collaborative consumption is growing from a trend for the young and urban to a viable alternative for everyone”
It’s not (only) a child’s play
20
Source: Campbell Mithun, February 2013.
Stay Hungry, Stay Updated - Sharing economy
Simplify is key for global spread
“Keep it simple”
21
%52 %83of Americans (for the last 2 years) have been
renting or borrowing those kinds of items usually owned
Source: The Sharing Economy, Loic Le Meur, April 2013.
would share those items if “sharing were easy”
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revolutionThis is not a passing trend, this is a
Stay Hungry, Stay Updated - Sharing economy
• Is it expensive?
• Is it expensive to maintain?
• is it easily transferable?
• is it underused?
• Is it anything I don’t need anymore?
answer these questions to check if your item is ok for collaborative consumption
What might I share?
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Source: World Economic Forum Young Global Leaders Sharing Economy Position Paper, June 2013.
Stay Hungry, Stay Updated - Sharing economy
Idling capacity + critical mass + high costs
Where is the change?
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Education & Skill
+ Content (Netflix, Spotify) + Food (Eat with me, Grubwithus)
Stay Hungry, Stay Updated - Sharing economy
Marketplace that enables users to delegate neighbors or other community people to do small tasks.
25
Target “taskrabbits”: students, housewives, unemployed, retired, young professionalsTarget users: busy people (well, everyone!)
Source: TaskRabbit; Crunchbase. July 2013.
It was born in 2008 | 37.7 million dollars (2013) | up to 5.000 dollars per month
Time Marketplace
1I state the task and the maximum
price I can pay
2The pre-certified “taskrabbits” bid in
3The user selects the taskrabbit who
fits best
Stay Hungry, Stay Updated - Sharing economy
Testo slide
More than on demand access to a car or a movie
Enabling a new lifestyle
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“The economy of sharing changes the way we behave, consume, seek new options, and commit to decisions”
Source: Fastcodesign.com, June 2013.
Stay Hungry, Stay Updated - Sharing economy
Rational Benefits
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Financial
Environmental
Lifestyle
Trial
saves me money
is good for the environment
provides me flexibility
provides access to goods/services
Source: Campbell Mithun, February 2013.
Stay Hungry, Stay Updated - Sharing economy
Emotional Benefits
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Generosity
Community
Lifestyle
Cultural
I can help myself and others
I’m valued and belong
I’m smart
I’m part of a movement
Source: Campbell Mithun, February 2013.
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Source: Forbes.com, February 2013.
Dylan Rogers, 27 years old sales rep from Chicago
He owns a BMW 6 Series, but since he rarely uses it, he decides to rent it via RelayRides
Just in a while his BMW was worthing more than $1,000 per month - more than its price and maintenance costs
Recently he bought a Jeep and he’s already thinking about buying a Charger ( which is very sought) to increase his fleet vehicles
He aims at $40,000 earning per year
Is it a hobby, a business venture or a small company?
The “micro-entrepreneurs” generation
Stay Hungry, Stay Updated - Sharing economy
The size of sharing economy
Stay Hungry, Stay Updated - Sharing economy
(just a few numbers)
Peer-to-peer financial-lending market
31
billion dollars5in 2013
Source: Fastcompany, June 2013.
Stay Hungry, Stay Updated - Sharing economy
(just a few numbers)
Couch-surfing around the world
32
million people3
countries253
Source: Fastcompany, June 2013.
Stay Hungry, Stay Updated - Sharing economy
(just a few numbers)
Bike-sharing
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million bikes per month2.2in 2011
Source: Fastcompany, June 2013.
Stay Hungry, Stay Updated - Sharing economy
(just a few numbers)
Car-sharing
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Source: Frost & Sullivan, 2013.
billion dollars3.3in North America in 2013
Stay Hungry, Stay Updated - Sharing economy
(just a few numbers)
Consumer peer-to-peer rental market
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billion dollars26in 2013
Source: Fastcompany, June 2013.
Stay Hungry, Stay Updated - Sharing economy
(just a few numbers)
Investments in sharing economy
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2
67
billion dollar invested in 200 startups
billion dollarssince 2011 to 2013
Source: The Collaborative Economy, Altimeter Group, May 2013.
Stay Hungry, Stay Updated - Sharing economy
[sharing] systems are deeply rooted in italian culture
What about Italy?
37
Source: Sharable, June 2013
projects crowdfundingplatforms
coworkingspaces
120 37 70
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Platform that offers "massive open online courses" (MOOC) from the most prestigious universities in the world
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Business model: premium classes, certifications, tutoring [students], sponsorship, recruitment [university]
Source: Corsera; Crunchbase, July 2013.
Founded in 2012 | 65 million dollars investment (2013) | 83 partner universities | 4 million monthly users
You might pay the certificate, but knowledge is for free
1Choose a course from a catalogue and join in (finance, literature, maths,
musics and a lot more)
2Attend the class and learn together
with other people: video, quiz, assessment, live interaction
3Reach the goals and build an
educational, personal and professional resumé
Stay Hungry, Stay Updated - Sharing economy 39
Source: Geek and Poke, 2013.
Stay Hungry, Stay Updated - Sharing economy
“from a business point of view”models, strategy, consequences
Stay Hungry, Stay Updated - Sharing economy
How much do we really use it?
I buy a car, but I keep it in my garage
41
}
8%
Our car is not used for more than 90%
Source: The future of business is the "mesh”, Lisa Gansky, January 2011.
Stay Hungry, Stay Updated - Sharing economy
What if we share that 90%?
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1shared car
?=
9*owned cars
270,000$ of missed revenues
* da 9 a 13, University of Berkeley, 2013.
Source: The Collaborative Economy, Altimeter Group, May 2013.
Stay Hungry, Stay Updated - Sharing economy
Which is the whole effect of carsharing?
The “snowball effect”
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Assurance
Taxes
Gas
Parking
Tolls
Maintenance
Buy
Financial Services
And what about 100, 10,000, 1,000,000 shared cars?
1,000,000 $
a system worth
Stay Hungry, Stay Updated - Sharing economy
Evolution & positioning of “transportation”
44
“Client/Server”
Not activeActive
P2P
traditionalDriver
Ownership
Traditional Rent
Carsharing
P2P car rental P2P taxi
Driver-sharing
Ridesharing
Red
efini
ng v
alue
cha
in
Red
efini
ng v
alue
cha
in
Stay Hungry, Stay Updated - Sharing economy
GoalMake transportation more accessible to those who can’t afford owning or maintaining a car.
TargetThere are 15 millions people in France (110 in Europe) who live under relative poverty threshold.
They are not Renault customers but they might become ones.
Enabling mobility
MOBILIZ by Renault
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Source: Renault Mobiliz, July 2013.
Stay Hungry, Stay Updated - Sharing economy
SolutionMake a network of services & commercial activities to enable a mobility accessible for
everyone, even those who can’t afford it.
Enabling mobility
MOBILIZ by Renault
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Repair shops
Car Dealers
Carpooling
Rent a car
Renault goes beyond its core business and invest in mobility
Stay Hungry, Stay Updated - Sharing economy
The threat comes from the people
Evolve or you will “disintermediated”
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Source: Britopian, June 2013.
Companies must evolve their business models to avoid becoming disintermediated by customers who connect with each other
Stay Hungry, Stay Updated - Sharing economy
Adopt the Collaborative Economy Value Chain
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Company-as-a-Service
Company-as-a-Platform
Company-as-a-Marketplace
Source: "What's Mine Is Yours: The Rise of Collaborative Consumption" Botsman & Rogers, 2010. The Collaborative Economy, Altimeter Group, May 2013.
Stay Hungry, Stay Updated - Sharing economy
Company-as-a-Service
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ModelOffer products or services to customers on-demand or through a subscription model (or even free).
Rent, Subscribe, Gift
BenefitDevelop a long-term relationship with the customer, and get your products into the hands of new customers.
Ex. ZipCar, oDesk, Coursera
product + service
“Think paying for the hole, not the power drill that makes it”
Stay Hungry, Stay Updated - Sharing economy
Company-as-a-Marketplace
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ModelCreate a community around the company by enabling customers and partners to resell or co-purchase products, swap
goods related to the brand, or even enable lending or gifting for no monetary exchange.Resell, Co-Own, Swap, Lend, Gift
BenefitAdding value to the relationship with customers.
Ex. AirBnb, Etsy
Service + Marketplace
“Start because it’s financially sensible. But we kind like the connection with people”
Stay Hungry, Stay Updated - Sharing economy
Company-as-a-Platform
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ModelEnable customers to build products and new services as partners.
Co-Ideate, Co-Fund, Co-Build, Co-Distribute, Co-Market, Co-Sell, Co-Revenue Share
BenefitBuild the connection with customers, improve the product and reduce costs
Ex. Kickstarter, Quirky.com, Yerdle
Marketplace + Product
“Stabilize your relationship to customers by connecting your customers each other under your brand”
Stay Hungry, Stay Updated - Sharing economy
NeedReact to Amazon and other competitors in e-commerce business.
Competitors advantageRapid home delivery.
IdeaWhich is our asset? Our clients, of course!
Let your customers work for you
Walmart to go
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Source: Venturebeat, March 2013
Stay Hungry, Stay Updated - Sharing economy
SolutionPay your in-store clients to deliver to people in the same community.
In addition, once registered, clients will receive discounts on shopping.
Ask your customers for help
Walmart to go
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A faster and more efficient “service” than Fedex or Ups, definitely
cheaper than building and maintaining a vehicles fleet.
Stay Hungry, Stay Updated - Sharing economy
Power shifts from who has the money to who has the best reputation and the most reliable network
Reputation is the new currency
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Source: Boston Magazine, April 2013.
- ONLY IF -Sharing works only if trusted
- Ick Factor - an aversion to sharing that’s rooted in the fear of strangers, germs, and awkward social encounters
Stay Hungry, Stay Updated - Sharing economy
Verified identity, social graph, peer pressure to create trust
Create trust and social capital that is both online and offline
Social digitalized
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This is me. Well, do you trust me? :-)
Stay Hungry, Stay Updated - Sharing economy
All companies are impacted; some will be severely disrupted.
Companies risk being disintermediated as customers monetize their assets and compete directly.
Customers will seek products that are more durable or maintain their value.
Reputation is the central asset. Customers trust other customers more than brands.
A porous workforce redefines employer and employee roles.
Offices can be anywhere, enabling the “pop-up company.”
The consequences for the firm
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Source: Sharable, March 2013.
Stay Hungry, Stay Updated - Sharing economy
Efficiency: customers help you to create, distribute and sell your product
Loyalty: build a deeper relationship with your clients
Social impact: new value made by the people
First mover win: We're just at the beginning. Opportunities are yet to be explored.
Collaborative approach advantages
“Let your company go”
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Source: The Collaborative Economy, Altimeter Group, May 2013.
Stay Hungry, Stay Updated - Sharing economy
The issueHalve, by 2020, its environmental impact, but 68% of emissions resulting from the use by
consumers of its products.
GoalHelping the consumers to make more sustainable and responsible buying.
A new path to reach sustainability
Unilever “sustainable living plan”
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Source: Carrotmob, June 2013.
Stay Hungry, Stay Updated - Sharing economy
Idea
Use the carrot, not the stick
Unilever “sustainable living plan”
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Platform aimed at getting people together in order to push firms to make more socially responsible changes to the business
Stay Hungry, Stay Updated - Sharing economy
SolutionBuild a partnership with Carrotmob to develop specific campaigns aiming at increasing consumers
engagement, creating brand loyalty, redefining global sustainability
Use the carrot, not the stick
Unilever sustainable living plan
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Source: Triplepundit, October 2012.
We are in a business world “that is moving from value-based transactions to values-based partnerships” (CEO Unilever)
Carrotmobbers agreed to shop on a certain day if the stores installed non-ozone-depleting freezers.
On the designated date, whenever a mobber bought at least three Unilever products at the stores, Unilever gave a donation to an environmental group
Stay Hungry, Stay Updated - Sharing economy
How do I define my 3.0 product/service?
5 tips to design a collaborative business
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1
Identify your real asset
Offline or online, fixed or moveable.
Just consider the value of what you want to share.
2
Re-customization
Remove the traces of previous ownership.
Allow customization and personalization at every
step
3
Prolong product lifestyle
When products change hands often, wear-and-tear
is a big issue.
Think about “regenerating”,
“substituting” or modifying some parts to prevent
usury.
5
Reputation
Reputation is the new currency.
Let your customer know who you are, how you
work and which are your values.
4
Multi-user scenarios
‘All for one and one for all’.
Build multi-user scenarios to allow interaction with a
multitouch surface or similar interfaces.
Source: Fastcodesign, June 2013.
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Criticism, risks, issues
The dark side of sharing economy
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Taxes, assurance, licensing, geographical restriction, protection of consumers' interests
Source: p2pfoundation, June 2013.
Global VS Local Digital Trust
Workers rightsPrivate VS Business
Members only
There are some“gray areas” where activities are neither legal
nor illegal.Setting “private ownership era”
rules to sharing economy is not always easy
Stay Hungry, Stay Updated - Sharing economy
Collaborative consumption is not a niche trend, and it’s not a reactionary blip to the recession. It’s a socioeconomic groundswell
that will transform the way companies think about their value propositions—and the way people fulfill their needs.
Rachel Botsman and Roo Rogers
Source: Harvard Business Review, October 2010.
Stay Hungry, Stay Updated - Sharing economy
About us
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Stefano Daelli | Business Consultant
Consultant at Orange Network on new business models, marketing and digital strategy topics. He’s project manager of Market Revolution, a blog about trends and business strategies, and co-founder of IMBIK, startup incubator based in Milan. He worked at the Accenture Customer Innovation Center in Milan. He graduated in Philosophy at Università Statale degli Studi di Milano and has been resident student of Collegio di Milano
Cinzia Malerba | Business Analyst
Business Analyst at Orange Network, on marketing and change management. She’s coordinator of Market Revolution, a blog about trends and business strategies. She previously worked in brand management and trade marketing in apparel and fashion. She holds a master in Management at Bocconi University and she
has been exchange student at Asian Institute of Management in Manila, The Philippines.
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