THE SHARING ECONOMY---

EMBRACING CHANGE WITH CAUTION

Claire IngramRobin Teigland

Stockholm School of Economics

June 2015

Anna FelländerSwedbank

• Launched June 2010300 cities in 58 countries • Limited physical assets• USD 41 bln valuation• Expected USD 50 bln

valuation

UberGlobal platform for local community

Examples and well-known actors in the Sharing Economy

Peer-to-peer exchange of tangible and intangible slack (or potentially slack)

resources, including information, in both global and local contexts.

The Sharing Economy

Harvard Business Review, 2014

Drivers of the Sharing Economy

Technology −Increasing penetration of Internet and smart

phones−Technological advancements in areas such IT

platforms and big data analytics −Falling entry barriers due to digitalization−Increased ease of financial transactions−Increased transparency

Declining consumption patterns

Financial crisis

Increasing access to capital through all forms of crowdfunding

Four forms of crowdfunding

 Form Benefits for funders

Donation-based

Donation Intangible benefits.

Reward-based Donation or pre-purchase

Rewards in addition to intangible benefits.

Equity-based Investment

Return on investment if company does well. Rewards sometimes also offered and

intangible benefits may motivate too.

Debt-based LoanRepayment of loan with

interest. Alternatively intangible benefits if loan given interest-free.

Ingram & Teigland 2013

From the north of Sweden

Hoffice – Home + Office

Hoffice – a Swedish concept gone global

Why is Sweden a leader?

Average per capita monthly mobile data use 2008-2013

Mixed economic implications

New pricing mechanisms push inflation down

Lower demand for capital in “Zero Marginal Cost Society”?

Perfect competition on monopolistic platforms?

Labor productivity – net effect?

New pricing mechanisms push inflation down

Income in Swedish music industry by format

Influence on labor productivity?

-Arun SundarajanProfessor, Stern School of Business

The Sharing Economy will expand the job market faster than the job

loss due to robotization - in the near term.

Thomas Jefferson (1816)“Laws and institutions must go hand in hand with the progress of the human

mind.”

The problem is that the human mind itself can’t keep pace with the advances

that computers are enabling. 

http://wadhwa.com/2014/04/15/mit-technology-review-laws-and-ethics-cant-keep-pace-with-technology/

Regulatory considerations

Employment

Production and commerce−Taxation−Safety−IoT and privacy−Intellectual property and ownership−Risk

Exercise

For Uber Against Uber1. Uber CEO 1. Taxi Stockholm CEO2. Uber Taxi driver 2. Taxi Stockholm driver3. Uber passenger 3. Average taxi

passenger4. Automobile Dealer Association Chairman

4. Taxi Industry Association Chairman

5. Politician 5. Politician

Develop an argument for your position:

Scenarios for 2020

Four scenarios for 2020High Tech Adoption

Global Recession

Global Growth

Business as Usual• Limited SE platforms

• Neo-sharers• Steady growth in freelancing

• Crowdfunding

Low Tech Adoption

Four scenarios for 2020High Tech Adoption

Global Recession

Global Growth

Shadow Economy• TaskRunner society• Vast urbanization

• Monopoly SE platforms• Barter economy

Low Tech Adoption

“Sharing” is big business…

http://www.web-strategist.com/blog/2015/06/04/the-collaborative-sharing-economy-has-created-17-billion-dollar-companies-and-10-unicorns/

Local initiatives

http://www.inc.com/adam-vaccaro/uber-isnt-a-car-service.html

Four scenarios for 2020High Tech Adoption

Global Recession

Global Growth

Freelance Economy• Differentiated SE platforms• High tech skills “exported”• Expansive crowdfunding

• Neo-sharing• “De-urbanization”

Low Tech Adoption

Four scenarios for 2020High Tech Adoption

Global Recession

Global Growth

Internet of Space• Differentiated SE platforms

• Attraction of talent• Test market

• Focus on privacy and integrity• Transitioning industries

Low Tech Adoption

http://app.cotunity.com/space

La’Zooz – Real-time transportsharing

Four scenarios for 2020High Tech Adoption

Global Recession

Global Growth

Internet of Space• Differentiated SE platforms

• Attraction of talent• Test market

• Focus on privacy and integrity• Transitioning industries

Freelance Economy• Differentiated SE platforms• High tech skills “exported”• Expansive crowdfunding

• Neo-sharing• “De-urbanization”

Business as Usual• Limited SE platforms

• Neo-sharers• Steady growth in freelancing

• Crowdfunding

Shadow Economy• TaskRunner society• Vast urbanization

• Monopoly SE platforms• Barter economy

Low Tech Adoption

Policy Implications

Flexible regulation using “trial and error”

Facilitation of entrepreneurship Government’s involvement in Sharing

EconomyChallenges for general statisticsDynamic clusters Internet for all

Local Stockholm success story: Flippin’ Burgers

Money raised: SEK 36,502 / €4,000

Number of investors: 186

Date funded: September 2011

Sector: Food

Top 5 Best

American

Restaurants

in Europe

Jobs that did not exist 10 years ago

iOS/Android developerSocial media managerUI/UX designerBig data architectCloud services specialistDigital marketing specialistSustainability expertZumba instructorBeach body coach

http://talent.linkedin.com/blog/index.php/2014/01/top-10-job-titles-that-didnt-exist-5-years-ago-infographic

Discussion