The digital revolution has transformed how consumers find and purchase products through mobile apps and social media, enabling new consumer-to-consumer (C2C) business models like Airbnb, Uber, and Taobao. These C2C platforms provide transparency through reviews and ratings, challenging traditional business-to-consumer models. Uber specifically connects drivers to riders through a mobile app, allowing riders to rate drivers and see their location. Similarly, Bitcoin introduced a decentralized virtual currency that enables peer-to-peer transactions without intermediaries through digital wallets on smartphones. C2C markets have grown larger than B2C e-commerce, demonstrating consumers' embrace of the convenient and lucrative new models.

1. The Not So Quiet Revolution of Consumer 2 Consumer Business
The digital mobile revolution has transformed consumer behaviours. Over the last decade
there’s been a shift in how consumers are finding and purchasing products and services. Many
start ups have capitalized on this trend and have created businesses centered around mobile
apps and social media. Think of Airbnb, Taskrabbit, Uber, Taobao, etc. It’s these two items that
have paved the way for the next generation in consumer to consumer (C2C) business. With
features such as customer reviews, ratings and engagement; buyers now have a greater level of
transparency than in typical business to consumer (B2C) models.
The success of the new C2C model has challenged many static B2C industry models forcing
them to modernize their service offerings or risk losing market share. Let’s take a look at two
examples to gain more insight in how they’re revolutionizing the way we buy.
Uber
One of the most controversial examples of the new C2C model is Uber. Operating in over 58
countries Uber and has shaken the foundation of the traditional taxi B2C service model.
Uber is an on-demand car service that allows a consumer to request private drivers through their
mobile app. The service utilizes dispatch software to send the nearest driver to the location1
. By
using the Uber software app drivers are connected to consumers through a service request.
People can sign up to become an Uber driver using their own vehicles.
In my opinion there are four main things that Uber did to evolve
the C2C model:
1. Rate your driver- The ability for passengers to rate their
drivers and read reviews. Transparency about service
from real reviewers provides a higher level of authenticity
and trust.
2. Pay for Performance- Drivers are empowered to get a 4
star rating or greater. This keeps service levels high and
increases earning potential.
3. Pay through your phone. Payments are made through
the credit card linked to your Uber account, on your
phone. No cash accepted.
1
http://www.wikihow.com/Use-Uber

2. 4. Contact Your Driver- Once the trip is booked on the app, the passenger will receive the
cell phone number of the driver and can watch them approach on their mobile device.
5. BYOC- Drivers can bring their own car to work! All they have to do is lease the mobile
app. and be adequately insured.
Bitcoin
Bitcoin is a digital payment system that enables peer to peer transactions
without having to go through an intermediary financial institution. Bitcoins can
be purchased through an electronic trading system using a smart phone. This
video is a great short summary of how Bitcoin works. Since its launch in 2008,
bitcoins have gained significant traction, with more than 45,000 transactions
($48.5 million dollars) handled through its network each day2
. It’s introduced the
concept of a decentralized virtual currency where value is determined by its users.
In my opinion Bitcoin that evolved the C2C model in four ways:
6. Universal Currency- No need to convert to various currencies. Value is determined by its
users- globally.
7. Lower Merchant Fees- Fees for retailers are much lower than the 2-3% typically imposed
by the credit card companies.
8. Real Time Payment- Once the bitcoin transaction is complete the digital currency is
transferred directly from the consumer to the vendor’s digital wallet. No middle financial
companies required.
9. Peer to Peer Money Transfers- Money can be wired directly to others through the digital
wallet.
The new C2C model is not only convenient but lucrative. In 2014, C2C had a recorded $105
billion dollar market size compared to $71billion dollars for B2C e-commerce3
. A testament that
consumers have embraced it.
With this new model, the traditional work model is also changing. Services like Taskrabbit and
Uber offer freelance opportunities where you can define your own hours and accept the jobs you
want. Motivators for incentives and rewards are geared to work/lifestyle balance or earnings
potential. Is this the laying the foundation for the way we define the way we work? As C2C
continues to become more lucrative, companies may need to rethink work arrangements,
incentives and rewards to remain competitive and retain its workforce.
What does C2C mean for your company?
2
(http://www.hongkiat.com/blog/bitcoin-questions/)
3
http://article.sapub.org/10.5923.j.ijnc.20140402.01.html

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