Sharing Economy is a set of practices and models that, through technology and community, allows individuals and companies to share access to products, services and experiences. This report - part of the "Inspiring Route" project - analyses and understands the main themes related to Sharing Economy through stories, examples, numbers, case studies.

1. SHARING ECONOMY
MARKETREVOLUTION.IT
@MKTRVLTN
INSPIRING ROUTE
11/07/2013

2. WELCOME
Thanks for coming
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3. @MKTRVLTN
#INSPIRINGROUTE

4. Where does this story start?
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Let me introduce you this guy...
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Henry Ford

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The first mass-manufactured car
The “Model T” (1908)
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“No man making a good salary will be
unable to own one”

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I shop therefore I am
3 pillars:
Testo slide
7
Ownership Accumulation Substitution

8. An economic model based on Ownership
42th article
5th amendement { }
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9. Source: It's lavish bitch, 2013.
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10. In the meanwhile, something was
changing...
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11. The story of Frederic
New economic model = new opportunities
Frederic Larson,
he’s a 63 years old photographer, fired by SF
Chronicle.
He decided to get the most out 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.
http://www.linkedin.com/in/mysticalsanfranciscophoto
Source: Forbes.com, February 2013.
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12. Economic
• Economic Crisis
• Unemployment
• New generations debt
load
Source: The Collaborative Economy, Altimeter Group, May 2013.
Social
• Increasing population
density
• Drive for Sustainability
• Desire for Community
• Generational Altruism
3 drivers
Technology
• Internet becomes global
• Mobile Devices and
platform
• Payment systems evolve
• Social networking rise
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13. What is sharing economy?
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14. A set of practices and models that, through
technology and community, allows individuals
and companies to share access to products,
SHARING ECONOMY - INSPIRING ROUTE
TITOLO
services and experiences.
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15. Old models reinvented for the future
renting, exchanging, sharing
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16. “As-a-service”
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
platforms which allow pricing, meeting and sharing.
Source: Fastcompany, April 2011. The Economist, March 2013.
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Access
17
Source: Forbes.com, January 2013.
“We’re moving from a
world where we’re
organized around
ownership to one
organized around
access to assets”

18. Who are the
“collaborative consumers”?
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19. Source: Sunrun, Feb 2013.
Millennials
The sharing economy’s early adopters
They are the new generation of consumers and they are
“culturally set up” to borrow, rent and share
“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 services such as
Spotify or Pandora”
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20. House owners
100
80
60
40
20
40%
33%
2007 2011
Millennials
The sharing economy’s early adopters
100
80
60
40
20
Car owners
73%
66%
2007 2011
100
80
60
40
20
Credit Cards
owners
50%
39%
2001 2010
Source: Sunrun, Feb 2013.
- target: under 35 USA -
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21. It’s not (only) a child’s play
“Collaborative consumption is growing from a trend for the young and urban, to
Source: Campbell Mithun, February 2013.
a viable alternative for everyone”
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22. “Keep it simple”
Simplify is key for global spread
52% 83%
of 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 was
easy”
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23. This is not a passing trend, this is a revolution
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24. What might I share?
answer these questions to check if your item is “ok” for collaborative consumption
• Is it expensive?
• Is it expensive to maintain?
• is it easily transferable?
• is it underused?
• Is it anything I don’t need
anymore?
Source: World Economic Forum Young Global Leaders Sharing Economy Position Paper, June 2013.
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25. Education &
Skill
Where is the change?
Idling capacity + critical mass + high costs
+ Content (Netflix, Spotify) + Food (Eat with me, Grubwithus)
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26. Marketplace that enables users to delegate to neighbors or to other
SHARING ECONOMY - INSPIRING ROUTE
Testo slide
26
Target “taskrabbits”: students, housewives, unemployed, retired, young
professionals
Target users: busy people (well, everyone!)
Source: TaskRabbit; Crunchbase. July 2013.
Time Marketplace
It was born in 2008 | 37.7 million dollars (2013) | up to 5.000 dollars per
month
1
I state the task and the maximum
price I can pay
2
The pre-certified “taskrabbits”
bid in
3
The user selects the taskrabbit
who fits best
community people to do small tasks.

27. Enabling a new lifestyle
More than on demand access to a car or a movie
“The economy of sharing changes the way we
behave, consume, seek new options, and commit to
decisions”
Source: Fastcodesign.com, June 2013.
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28. Financial
Rational Benefits
Environmental
Lifestyle
Trial
saves me money
is good for the environment
provides me flexibility
provides access to goods/services
Source: Campbell Mithun, February 2013.
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29. Emotional Benefits
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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30. Source: Forbes.com, February 2013.
The “micro-entrepreneurs” generation
Is it a hobby, a business venture or a small company?
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
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31. The size of sharing economy
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32. Peer-to-peer financial-lending market
(just a few numbers)
5 billion dollars in 2013
Source: Fastcompany, June 2013.
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33. Couch-surfing around the world
(just a few numbers)
3 million people
253 countries
Source: Fastcompany, June 2013.
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34. Bike-sharing
(just a few numbers)
million bikes
2.2 per month
in 2011
Source: Fastcompany, June 2013.
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35. Source: Frost & Sullivan, 2013.
Car-sharing
(just a few numbers)
3.3 billion dollars in North America in
2013
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36. Consumer peer-to-peer rental market
(just a few numbers)
billion dollars
26 in 2013
Source: Fastcompany, June 2013.
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37. Investments in sharing economy
2
67
(just a few numbers)
billion dollar
invested in 200 startups
billion dollars
since 2011 to 2013
Source: The Collaborative Economy, Altimeter Group, May 2013.
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38. Source: Sharable, June 2013
What about Italy?
[sharing] systems are deeply rooted in italian culture
120 37 70
projects crowdfunding
platforms
coworking
spaces
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39. Platform that offers "massive open online courses" (MOOC) from the most
Founded in 2012 | 65 million dollars investment (2013) | 83 partner universities | 4 million monthly users
SHARING ECONOMY - INSPIRING ROUTE
Titolo slide
Testo slide
39
Business model: premium classes, certifications, tutoring [students], sponsorship, recruitment
[university]
Source: Corsera; Crunchbase, July 2013.
You might pay the certificate, but knowledge is for free
1
Choose a course from a
catalogue and join in (finance,
literature, maths, musics and a lot
more)
2
Attend the class and learn
together with other people:
video, quiz, assessment, live
interaction
3
Reach the goals and build an
educational, personal and
professional resumé
prestigious universities in the world

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Titolo slide
Sottotitolo slide
Testo slide
40
Source: Geek and Poke, 2013.

41. “from a business point of view”
models, strategy, consequences
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42. I buy a car, but I keep it in my garage
8%
}
How much do we really use it?
Our car is not used for more than 90%
Source: The future of business is the "mesh”, Lisa Gansky, January 2011.
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43. 1
What if we share that 90%?
shared 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.
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44. Buy
The “snowball effect”
Which is the whole effect of carsharing?
Financial Services
Assurance
Taxes
Gas
Parking
Tolls
Maintenance
a system worth
1,000,000 $
And what about 100, 10,000, 1,000,000 shared cars?
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45. Evolution & positioning of “transportation”
P2P
P2P car
rental P2P taxi
Ridesharing
“Client/Server”
Driver-sharing
Not
active
Active
traditional
Driver
Carsharing
Traditional
Rent
Ownership
Redefining value chain
Redefining value chain
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46. MOBILIZ by Renault
Enabling mobility
There are 15 millions of people in France (110 in Europe) who live under relative
poverty threshold. They are not Renault customers but they might become ones.
Source: Renault Mobiliz, July 2013.
Goal
Make transportation more accessible to those who can’t afford owning or
maintaining a car.
Target
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47. MOBILIZ by Renault
Enabling mobility
Make a network of services & commercial activities to enable the mobility
accessible for everyone, even those who can’t afford it.
Car Dealers
Repair shops
Rent a car
Carpooling
Solution
Renault goes beyond its core business and invest in mobility
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Evolve or you will “disintermediated”
The threat comes from the people
Testo slide
48
Source: Britopian, June 2013.
Companies must evolve their business models to avoid
becoming disintermediated by customers who connect
with each other

49. Adopt the Collaborative Economy Value Chain
Company-as-a-Service
Company-as-a-Marketplace
Company-as-a-Platform
Source: "What's Mine Is Yours: The Rise of Collaborative Consumption" Botsman & Rogers, 2010. The Collaborative Economy, Altimeter Group, May 2013.
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50. Company-as-a-Service
product + service
Model
Offer products or services to customers on-demand or through a subscription model (or even free).
Rent, Subscribe, Gift
Benefit
Develop a long-term relationship with the customer, and get your products into the hands of new
customers.
Ex. ZipCar, oDesk, Coursera
“Think paying for the hole, not the power drill that makes it”
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51. Company-as-a-Marketplace
Service + Marketplace
Model
Create 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
Benefit
Adding value to the relationship with customers.
Ex. AirBnb, Etsy
“Start because it’s financially sensible. But we kind of like the connection with people”
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52. Company-as-a-Platform
Marketplace + Product
Model
Enable customers to build products and new services as partners.
Co-Ideate, Co-Fund, Co-Build, Co-Distribute, Co-Market, Co-Sell, Co-Revenue Share
Benefit
Build the connection with customers, improve the product and reduce costs
Ex. Kickstarter, Quirky.com, Yerdle
“Stabilize your relationship to customers by connecting your customers each other
under your brand”
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53. Source: Venturebeat, March 2013
Walmart to go
Let your customers work for you
Need
React to Amazon and other competitors in e-commerce business
Competitors advantage
Rapid home delivery
Idea
Which is our asset? Our clients, of course!
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54. Walmart to go
Ask your customers for help
Pay your in-store clients to deliver to people in the same community.
In addition, once registered, clients will receive discounts on shopping.
A faster and more
efficient “service” than
Fedex or Ups, definitely
cheaper than building
and maintaining a
vehicles fleet.
Solution
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55. Reputation is the new currency
Power shifts from who has the money to who has the best
reputation and the most reliable network
an aversion to sharing that’s rooted in the fear of strangers, germs, and awkward social
Source: Boston Magazine, April 2013.
- Ick Factor -
encounters
- ONLY IF -
Sharing works only if trusted
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56. Social digitalized
Create trust and social capital that is both online and offline
Verified identity, social graph, peer pressure to create trust
This is me. Well, do you trust me? :-)
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57. The consequences for the firm
Companies risk being disintermediated as customers monetize their assets and
Customers will seek products that are more durable or maintain their value.
Reputation is the central asset. Customers trust other customers more than brands.
Source: Sharable, March 2013.
All companies are impacted; some will be severely disrupted.
compete directly.
A porous workforce redefines employer and employee roles.
Offices can be anywhere, enabling the “pop-up company.”
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58. “Let your company go”
Collaborative approach advantages
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
Source: The Collaborative Economy, Altimeter Group, May 2013.
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59. Unilever “sustainable living plan”
A new path to reach sustainability
Halve, by 2020, its environmental impact, but 68% of emissions resulting from the
Source: Carrotmob, June 2013.
The issue
use by consumers of its products
Goal
Helping the consumers to make more sustainable and responsible buying
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60. Unilever “sustainable living plan”
Use the carrot, not the stick
Idea
Platform aimed at getting people together in order to push firms to make more
socially responsible changes to the business
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61. Unilever “sustainable living plan”
Use the carrot, not the stick
Build a partnership with Carrotmob to develop specific campaigns aiming at increasing
consumers engagement, creating brand loyalty, redefining global sustainability
Source: Triplepundit, October 2012.
Solution
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
We are in a business world “that is moving from value-based
transactions to values-based partnerships” (CEO Unilever)
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62. 1
5 tips to design a collaborative business
Identify your real asset
Offline or online, fixed
or moveable.
Just consider the value
of what you want to
share.
How do I define my 3.0 product/service?
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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63. The dark side of sharing economy
Criticism, risks, issues
There are some“gray areas”
where activities are neither
legal nor illegal.
Global VS Local Digital Trust
Setting “private ownership
era” rules to sharing
economy is not always easy
Private VS Workers rights
Members only Business
Taxes, assurance, licensing, geographical restriction, protection of consumers' interests
Source: p2pfoundation, June 2013.
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64. 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
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TITOLO
their needs.
Rachel Botsman and Roo Rogers
Source: Harvard Business Review, October 2010.
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