The Collaborative Economy

The Collaborative Economy

is a set of marketplaces that allow the purchase, exchange or redistribution of assets in return for a capital or productivity gain

The Collaborative Economy

Wait.. WHAT??

The Collaborative Economy

The Collaborative Economy promotes and supports marketplaces used to buy, sell, or share products and services in exchange for an equivalent resource or monetary gain

How we see it
Redistribution

Creation

Marketplace s

Consumption

With the diagram, could we have a build or animation that populates with examples you know and some "you might not."?

Other definitions we like

Collaborative Consumption uses technology and social media to promote the sharing and re-use of underutilized assets such as cars, bikes, tools, rooms, spaces, skills and other goods -SF City Gov't

Other definitions we like

Collaborative Consumption uses technology and social media to promote the sharing and re-use of underutilized assets such as cars, bikes, tools, rooms, spaces, skills and other goods -SF City Gov't Loosely defined, collaborative consumption is a business model in which shared goods or services are distributed via a market place to a community of users. Collaborative consumption reshapes markets by changing supply and demand economics. These new market places shrink consumer retail demand. Other collaborative consumption manage two sided market places and use the capital efficiency of these models to address larger, costconscious populations -Tomas Tunguz Redpoint Ventures

Other definitions we like

Collaborative Consumption uses technology and social media to promote the sharing and re-use of underutilized assets such as cars, bikes, tools, rooms, spaces, skills and other goods -SF City Gov't Loosely defined, collaborative consumption is a business model in which shared goods or services are distributed via a market place to a community of users. Collaborative consumption reshapes markets by changing supply and demand economics. These new market places shrink consumer retail demand. Other collaborative consumption manage two sided market places and use the capital efficiency of these models to address larger, costconscious populations -Tomas Tunguz Redpoint Ventures The Collaborative Economy is an economic model where ownership and access are shared between corporations, startups, and people. This results in market efficiencies that bear new products, services, and business growth. -Altimeter

What is the Impact?

Traditional Industry Traditional Businesses are getting disrupted by new companies that are looking to take their marketshare at a lower cost or higher convenience

Impact
Government Legislation is being challenged and changing

Impact
Communities Online & Offline communities are being created out of want and need 5 billion
# of people expected to come online in the next 5 years

Get this money!

It's not all about Drum Circles and Kumbayah! This economy is driven by

$$$$ and :-)

-a deadly combo

Feel like this point could possibly be made with the imagery/examples on the diagram with a speaker note being... it's a real business... I'd love to frame this as "impact" economic, societal, individual maybe...

How big is it?

HUGE!

$26 Billion P2P Rentals

46% Age 35-54 who are interested

110 Billion

1 in 3 workers in the US are self-employed

Over $2 billion in institutional capital

What's working (and where)

Some things are wildly successful! -Airbnb -Kickstarter -Car-sharing

O ab

I'd lo no Ki pa ha

W of

Surprisingly... 38 - the average age of Airbnb hosts in SF 10% - Percentage of films at Sundance that were Kickstarter Funded

L o s

By the numbers...
Indiegogo:14% of campaigns had a single contributor refer more people to the campaign page than the campaign owner. Each shared car eliminates five to 20 cars from circulation In 1900, 41 percent of the natural resources entering the US economy were recycled. Today, that figure is 13 percent. Most shared things after information and media: Living space (58%) Work space (57%) Food preparation/meal-sharing (57%) Household items/appliances (53%) Apparel (50%)

A in t p

Challenges
Regulatory, Economic, & Employment barriers stand in the way.

Where is it going?
It's growing! - more people are becoming open to the idea of sharing their belongings and valuing access over ownership
In the past year, 52% of Americans have rented, borrowed, or shared things they used to own, and 83% of people are willing to do it, despite the $22 billion selfstorage industry and homes that have doubled in size.

Where is it going?
Financial Services - as regulations change, we will see more creative solutions to financial problems

Where is it going?
Tranditional Business - These companies are not just watching, but getting involved

Where is it going?
Support Services Bc of the regulatory problems and hardships, the support systems need to be in place to insure success and that presents huge opportunity in: -Insurance -Law -Tax -Tracking transactions (i.e. BitCoin)

Where is it going?
GLOBAL! Copycats are happening all over:

What freaks us out (Local marketplaces edition)...

Marketplace Fragmentation in Collaborative Economy Verticals

P2P marketplaces require density of supply and demand...impossible with so many players all populating with the same product Applies for ridesharing also because there supply is spread across services---too much demand

What freaks us out, broader landscape....

The Big What-Ifs Regulatory Challenges = business after business forced to really cease and desist

Online to offline Marketplaces are operationally intensive...making expansion a slow, expensive process

Values
This is an economy with values

Open

Efficient

Sustainable Accessible

What our friends are psyched about.

Enterprise - Ideas are largely consumer facing leaving the enterprise market largely untouched Expansion - Moving these platforms and marketplaces internationally Age Penetration - Gaining traction in older demographics

Story Capture - finding and exposes successes

How do we know it's moving the right direction?

-Ownership and purchase of new 'assets' declines over time -Access goes up

How do we know it's moving the right direction?

Access increases across demographics and income levels -Not just for the rich and privelidged anymore

How do we know it's moving the right direction?

-Self-employment, and self-empowerment, goes up and becomes more viable -1099 Income goes up

How do we know it's moving the right direction?

-'Useful Life' of an asset, or productivity, goes up significantly

Stat Sheet & Talking Points

-Among those who have not shared their property or belongings online, those who are most receptive to learning more about the sharing economy include younger adults (57%) as well as those aged 35-54 (46%) compared to only three in ten (30%) of people 55 and over

-Those with children in the household (52%) and those with a college education (50%) are also more likely to express an interest in learning about the sharing economy
-Airbnb: 56 Million Ec Impact in SF, 240 Million in Paris, $500 Million in NYC -The plurality of people who share are motivated by philosophical reasons, which is similar to job satisfacton as well -Those who have not shared before are most likely to be moved by the financial reward or compensation (42%) -Other reasons to share online include the chance to support or promote sustainability (24% of sharers vs. 12% of non-sharers respectively), and social rewards such as the chance to meet people (25% vs. 8%, respectively) -Six in ten sharers (61%) agree that earning extra money was the main motivation for sharing property or belongings -Sharers put the money they have earned from sharing primarily toward basic expenses such as paying bills (46%), savings (27%), shopping (26%), travel (17%), supporting charities (17%), or starting a business (13%) -Over four in ten non-sharers (43%) agree that they'd consider sharing their property or belongings online with someone they didn't previously know if it would allow them to make extra money -2.66 million people took on temp work, making up almost 2 percent of the countrys overall workforce

-Airbnb Average Age: 35 Hotel Avg Age: 43

-Airbnb % international: 38% Hotel: 24% -1100 Total Spending (360 Host, 740 Local Biz) for Airbnb customers vs. 840 Total (310 Hotel 530 Biz) -In the past year, 52% of Americans have rented, borrowed, or shared things they used to own, and 83% of people are willing to do it, despite the $22 billion self-storage industry and homes that have doubled in size -Most shared things after information and media: Living space (58%) Work space (57%) Food preparation/meal-sharing (57%) Household items/appliances (53%) Apparel (50%)

Stat Sheet & Talking Points cont...

-15 to 32% of carsharing members sold their personal vehicles, and between 25 and 71% of members avoided an auto purchase due to carsharing -Each shared car eliminates five to 20 cars from circulation - In 1900, 41 percent of the natural resources entering the US economy were recycled. Today, that figure is 13 percent. -Whilst 48% of start-ups currently share one or more physical assets such as vehicles and offices with other businesses, 31% are now also sharing elements of their workforce choosing to access certain job functions on demand. -55% of start-ups said sharing resources from desk space and IT systems, to transport and staff as essential to business survival -