jeremiah owyang keynote on the collaborative economy
TRANSCRIPT
What role do corporations play
if people don’t need them?
The Collaborative Economy
@jowyang
An economic model where ownership and access are shared
between people, startups, and corporations.
The only way, is to let go
to gain more.
Is this a business
disruption?
Sharing Is Not New
Lyft
People Can Tap into Each Other
Need to travel…
Lyft enables crowd to be transportation
AirBnb
People Can Tap into Each Other
Need a place to stay…
AirBnb Enables Crowd to be a Hotel
People Can Tap into Each Other
Need to get funded...
LendingClub
LendingClub enables crowd to be a bank
oDesk
People Can Tap into Each Other
Need staff…
oDesk enables crowd to be a workforce
Feastly
People Can Tap into Each Other
Need to feed team
Feastly enables restaurants in your neighborhood home
People Can Tap into Each Other
Need a place for staff…
LiquidSpace
Liquidspace enables companies to rent from each other
Yerdle
People Can Tap into Each Other
Need consumer
products…
Yerdle enables neighbors to gift goods rather than buy
A properly shared car is
$270,000
Lost Revenue
Of auto sales
(1 shared car = 9 cars
at average of $30k
each.)
23
Is this a passing fad?
Societal Factors
75% said they predicted sharing of physical objects and spaces will increase in next 5 years
–Shareable Magazine Study
Population
Economic Factors
1975:
4 Billion
2050:
9 Billion
Technology Factors
• 87 phones per 100
people on planet
• Three quarters of
startups use social
tech like Facebook
A movement that’s only increasing
Out of 200 collaborative economy startups, total funding was over $2 billion
Of those funded, the average was $28 million (May 2013, Lyft raised $60m)
Eras of the internet
To stop the sharing revolution
you must stop the internet.
Collaborated with the Revolutionaries
32
What can you do?
Collaborative
Economy:
Value Chain
Collaborative
Economy:
Value Chain
Collaborative
Economy:
Value Chain
1. Company as a Service
Toyota as a Service
Razors as a service
Mobility as a Service
Collaborative
Economy:
Value Chain
2. Motivate a Market
ScotteVest enables second market
Patagonia enabling second market and altruism
Collaborative
Economy:
Value Chain
3: Provide a Platform
Collaboration
FundDesignDevelopProduce
Co
Co-Fund new products
Co-Design products like Nike
Co-Develop like Quirkly
Co-Customize Like Etsy
Co-Production with 3D Printers
Co-Storage of Products with Lockitron
Co-Deliver with Deliv
Co-Market: Christina Bike
Enable others
to build a product
Collaborative
Economy:
Value Chain
What will challenge us as
we move forward?
Opposing Market Forces Abound
1. Governments and
institutions oppose.
2. Buyers and sellers lack
complete trust.
3. Lack of industry-wide
reputation systems
4. Uncertainty about which
startups will stand the test
of time.
What are your benefits for
letting go to the
collaborative economy?
More efficient, as the crowd helps.1
2Long term relationship with
vested customers.
3New value created between
people
4 If you act now, you will have first
mover advantage
Collaborative
Economy:
Value Chain 20%
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Collaborative Economy Take-Aways
• A sharing revolution is increasing in velocity
and scale
• People turn to each other to get what they
want—bypassing corporations
• Activate the Collaborative Economy Value
Chain
• Company as a service
• Motivate a marketplace
• Provide a platform
Let go of your company to
gain the market.
What side of history
will you be on?
Download the Open Research report: bitly.
Jeremiah Owyang
Partner and Industry Analyst
Altimeter Group
@jowyang
web-strategist.com
Collaborative Economy Glossary
Collaborative Economy (Model): An
Economic model where ownership and access is shared between people, startups, and corporations.
Two sided Marketplace (Category): An
online website where buyers and sellers of goods or services are sharing inventory, need, and transacting. Example: Ebay, Craigslist, AirBnb, 99 dresses.
Transactions (Verbs): There are many types of
verbs that can be used in facilitation including: Buy, Sell, Swap, Lend, Gift, Co-own, co-fund , buy and more.
Maker Movement (Trend): An emerging trend
where customers can self-design, create, produce, and distribute products and goods on their own.
Company as a Service (Strategy): Rather
than sell goods in the traditional sense, offer products or services to customers on- demand or through a subscription model. Rent, Subscribe, or Gift.
Motivate a Marketplace (Strategy): A
community around a brand 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.
Provide a Platform (Strategy): Corporations
that enable an ecosystem customers to build products and new services as partners — not just consumers.
Online Reputation (Feature): Any number of
online features that store historical and current information about social profiles, individuals network connections, credibility, or reviews of previous and predictable behavior.
Social Sign On (Feature): A technology feature
that connects websites with profile systems from social networks like Facebook, LinkedIn or Twitter connect enabling existing reputation, social contacts, and social graph information
Altimeter looked at over 200 collaborative economy startups
Over 1/3 of these startups have received venture capital funding
37% $
The average funding per startupis $29M
$130M
$83M
$50M
$29M
Average
Startup
The total funding across these 200 startups is $2B, showing broad investor commitment
$2B
2/3 of these startups focus on peer-to-peer sharing
63%
Peer-driven sharing, like Airbnb or 99Dresses
35%
Business/brand-driven sharing, like co-working or
BMW Drive NOW
2/3 of these startups charge on a per usage (pro rata)
67%
21%
10%
6%
Pro Rata
Membership/One Time Fee
Free
Exchange
Of the Top 30 Startups, Most Have Social Networking Features
75
Have social networking
features, e.g. social profiles
and reputation systems
73%
Integrate Facebook Connect
53%
Collaborative Economy Value Chain:
Exploded Visualization
Credits: Research Interviews
Airbnb, Molly Turner, Public Policy
Arbor Advisors, Dean Callas, Investment Banker
Ariba, An SAP Company, Joseph Fox, VP of Strategy
August Capital, David Hornik, Investor
Bazaarvoice, Stephen Collins, CEO
carpooling .com, Markus Barnikel, CEO
Cisco, Carlos Dominguez, SVP, Office of the COB and CEO
ConnectMe 360, Brian Hayashi, Founder
Decide.com, Shauna Causey, VP, Marketing
Enterprise Holdings, Ryan Johnson,
WeCar AVPeToro, Yoni Assia, CEO and Founder
eToro, Nadav Avidan, PR and Communications Manager
eToro, Adi Yagil, Head of Social Media
Gazelle, Israel Ganot, CEO
HomeExchange, Ed Kushins, Founder
Jive Software, Christopher Morace, Chief Strategy Officer
LiquidSpace, Mark Gilbreath, CEO/Founder/Skipper
Lithium, Rob Tarkoff, President and CEO
Lyft, Kristin Sverchek, General Counsel
MuckerLab, William Hsu, Co-Founder, Partner
Sasson Capital, Vivian Wang, Venture Capitalist
oDesk, Gary Swart, CEO
oDesk, Shoshana Deutschkron, Director, Communications
OuiShare, Antonin Léonard, Co-Founder
Oversee.net, Gene Chuang, CTO
PivotDesk, Alex Newman, Director, Customer Development
Sass.me and Oversee.net, Min Chan, GM of Mobile
SCOTTEVEST, Scott Jordan, CEO and Founder
Shareable Magazine, Neal Gorenflo, Founder
Shasta Ventures, Rob Coneybeer, Managing Director
Collaborative Lab, April Rinne, Chief Strategy Officer
Collaborative Lab, Lauren Anderson, Chief Knowledge Officer
The Mesh, Lisa Gansky, Author, The Mesh: Why the Future of Business is Sharing
Zuora, Tien Tzuo, CEO
Zuora, Brian Bell, CMO
Deborah Schultz, Innovation Strategist
The following people provided guidance, reviewed content, tested ideas, or most
importantly, challenged the thesis during the project:
David Armano, David Berkowitz, Richard Binhammer, Mel Blake, Erik Boles, Michael Brito,
Noelle Chun, Steve Farnsworth, Lyle Fong, Ian Greenleigh, Shel Holtz, Noah Karesh, Kevin
Kelley, Matt Krebsbach, Wendy Lea, Evelyn Lee, Geoff Livingston, Jacob Miller, Marcus
Nelson, Ben Parr, Jeff Richards, Andy Ruben, Jim Rudden, Ben Smith, Aaron Strout,
Carmen Taran, Rob Tarkoff, Ed Van Siclen, Mike Walsh, Sharon Weinbar, Adam Werbach,
Susan Williams, Vladimir Mirkovic, Anita Wong, and the entire Altimeter Group research and
consulting team.
We extend special appreciation to LeWeb founder Loic Le Meur who inspired Altimeter
Group to research this topic.
Credits: Research Input