The Sharing Economy

THE SHARING ECONOMY LOIC LE MEUR FOUNDER, LEWEB
I’M NOT AN EXPERT IT’S JUST MY THEME FOR LEWEB LONDON
RACHEL & LISA ARE EXPERTS
You cannot avoid it, even if you try.
40,000 people per day 30,000 cities 192 countries
0 200 400 600 800 1000 1200 1400 1600 Feb-06 May-06 Aug-06 Nov-06 Feb-07 May-07 Aug-07 Nov-07 Feb-08 May-08 Aug-08 Nov-08 Feb-09 May-09 Aug-09 Nov-09 Feb-10 May-10 Aug-10 Nov-10 Feb-11 May-11 Aug-11 Nov-11 Feb-12 May-12 Aug-12 Nov-12 Feb-13 MILLIONS CUMULATIVE ORIGINATIONS
$320 million pledged by 2.2 million people on 18,000 projects
$320 million pledged by 2.2 million people on 18,000 projects 2011: Kickstarter hit 1 million backers
25,000 fans donated $1.2M on kickstarter to finance Amanda Palmer’s new album
767,000+ members
Largest Community Garden on the Planet 25 million square feet
52% of Americans have rented, borrowed, or leased the kinds of items that people usually own in the past two years. Source: Study Sunrun - Feb 2013
83% said they would share these items if they "could do so easily." Source: Study Sunrun - Feb 2013
"We’ve always been in a culture where more is more, and suddenly we’re in a culture where less is a better quality of life. It’s pretty revolutionary." Bill Stewart, VP of customer care at Sunrun
Why sharing?
#1 Recession
Photo Credit: Ed Yourdon/Flickr
#2 Too much waste
Photo Credit: plasticparadisemovie.com
#3 Too much stuff we don’t use
Photo Credit: K2D2vaca/Flickr Black Friday video
Self Storage is a $22 billion industry
Larger than box office sales
983 2480 1950 2011 And our homes are getting bigger! Home size between 1950-2011
#4 Too much choice and disconnect with happiness
Richard Layard - HAPPINESS:HAS SOCIAL SCIENCE A CLUE?
Since 1960
3 times more teen suicide
5 times more prison population
There is always something better
There is always something BIGGER
There is always something faster
The more we have
The more we want
#5 Enough of crappy products
Photo Credit: Kazutaka Sawa/Flickr The number of people living and dining by themselves has doubled over the last 40 years
#6 Social Local Mobile Revolution
• Technology enables this growth
• Sharing is at the core of tech growth
• Mobile and Local enable totally new types of sharing services
What people are doing
1. Return to local markets: Etsy THE CRAFTSMAN LIVES AGAIN ON ETSY Human to human relationship between the person who is making it and the person who is buying it. 3 years 200,000 sellers 1 Million registered users
1. Return to local markets: Etsy FARMSTAND There are more than 5,750 local farmers markets versus 1,700 in 1994.
LAGreenGrounds.org creates gardens... Photo Credit: www.lagreengrounds.org
LAGreenGrounds.org creates gardens... ... on sidewalks Photo Credit: www.lagreengrounds.org
New consumer mindset
Simplicity Traceability and Transparency Community Participation Collaboration
An entire new generation is growing up with new values
They believe in authenticity
They believe in sustainability
They believe in doing well is doing good
They believe in community sharing
They believe in creating together
They believe in crowdfunding
They believe that greed is BAD, money is OK
BURNING MAN gathers 50,000 people in the desert with no money and no marketing
Burning Man video From Spark
Photo Credit: Hawaii Savvy/Flickr
They want to live with less
They want to live with lessMUCH
“this stuff ended up running my life, the things I consumed ended up consuming me” Photo Credit: Maxwell Holyoke-Hirsch http://www.nytimes.com/2013/03/10/opinion/sunday/living-with-less-a-lot-less.html Graham Hill
You are not the clothes you wear, the contents of your wallet, or the car you drive.
“Advertising has us chasing cars and clothes, working jobs we hate so we can buy shit we don't need” Rachel Botsman, in “What’s mine is yours”
New products being created
Designed to last, not crappy
Preserve the planet
Focus on use availability more than ownership
4 core principles of collaborative consumption CRITICAL MASS IDLING CAPACITY BELIEF IN THE COMMONS TRUST BETWEEN STRANGERS
5. A PRICE TAG HIGH ENOUGH THAT MAKES IT WORTH SHARING OR GETTING A POWER DRILL HAS CRITICAL MASS HUGE IDLE TIME BUT NOT EXPENSIVE ENOUGH
The new brands
No brand is the new brand
No pushed or intrusive advertising
Very community focused
Stays out of the way of the users
Has purpose
Could the sharing economy be a fad?
Cloo video
Loosecube built a marketplace
not a community
40% of America’s workforce will be freelancers by 2020
Trust is the key
"by the end of this decade, power and influence will shift largely to those people with the best reputations and trust networks, from people with money and nominal power" Craig Newmark
Why you should care
Large companies already crowdsource
Red Bull Collective Art, in partnership with Adobe
During the 2012 election campaign Obama crowdsourced poster design ideas promoting jobs in America
Coca Cola running crowdsourcing design and brand ideas
Photo Credit: NNECAPA/FlickrWal-Mart dabbles with ‘sharing economy’ to implement same-day delivery
How you can participate
The growth of the sharing economy can be slowed down by large companies, governments with unaligned interests
Replace consumerism with peer to peer sharing
The system centralizes production, wealth and control Industrial Economy Credit: Douglas Atkin
Now we have an alternative: peer sharing Sharing Economy Credit: Douglas Atkin
Legalize sharing
Make sharing mainstream by shifting the culture
This is not a fad it’s a huge movement
From Collaborative Consumption to Collaborative Creation
LOIC LE MEUR FOUNDER, LEWEB LOIC@LEWEB.CO FACEBOOK.COM/LOIC TWITTER: @LOIC Share. Thanks for your help on this presentation: Morgan Denis Axelle Tessandier Karyn Kane Williams Douglas Atkin

Editor's Notes

25,000 fans donated $1.2M on kickstarter to finance her next albumhttp://www.wired.com/underwire/2013/03/amanda-palmer-2/http://www.nytimes.com/2012/06/06/arts/music/amanda-palmer-takes-connecting-with-her-fans-to-a-new-level.html?pagewanted=all&_r=0

SPARK VIDEO http://www.youtube.com/watch?v=JbSUyYXH8hs

http://www.fastcoexist.com/1681790/your-reputation-will-be-the-currency-of-the-future?utm_source=twitter

Distorted investment priorities, as wealth gets directed into what will earn the largest profit and not into what most people really need (so public health, public education, and even dikes for periodically swollen rivers receive little attention);Worsening exploitation of workers, since the harder, faster, and longer people work—just as the less they get paid—the more profit is earned by their employer (with this incentive and driven by the competition, employers are forever finding new ways to intensify exploitation);Overproduction of goods, since workers as a class are never paid enough to buy back, in their role as consumers, the ever growing amount of goods that they produce (in the era of automation, computerization and robotization, the gap between what workers produce—and can produce—and what their low wage allows them to consume has increased enormously);Unused industrial capacity (the mountain of unsold goods has resulted in a large percentage of machinery of all kinds lying idle, while many pressing needs—but needs that the people who have them can't pay for—go unmet);Growing unemployment (machines and raw materials are available, but using them to satisfy the needs of the people who don't have the money to pay for what could be made would not make profits for those who own the machines and raw materials—and in a market economy profits are what matters);Growing social and economic inequality (the rich get richer and everyone else gets poorer, many absolutely and the rest in relation to the rapidly growing wealth of the rich);The same market experiences develop a set of anti-social attitudes and emotions (people become egotistical, concerned only with themselves. "Me first", "anything for money", "winning in competition no matter what the human costs" become what drives them in all areas of life. They also become very anxious and economically insecure, afraid of losing their job, their home, their sale, etc.; and they worry about money all the time. In this situation, feelings as well as ideas of cooperation and mutual concern are seriously weakened, where they don't disappear altogether, for in a market economy it is against one's personal interest to cooperate with others);Worsening ecological degradation (since any effort to improve the quality of the air and of the water costs the owners of industry money and reduces profits, our natural home becomes increasingly unlivable);

An individual with no specialized skills should be able to make an average of $41,000 per year in the SERead more at http://venturebeat.com/2013/01/21/will-you-leave-your-job-to-join-the-sharing-economy/#eBwU2PvBIYBJEa57.99Sabrina Hernandez, 23, used to work at Starbucks, but she isn’t going back after averaging $1,200 a month this fall hosting strangers’ dogs in her apartment through website DogVacay. “It’s so much more rewarding than working in a customer-service setting.”Airbnb commissioned a study of its economic impact on San Francisco last year and found a “spillover effect.” Because an Airbnb rental tends to be cheaper than a hotel, people stay longer and spent $1,100 in the city, compared with $840 for hotel guests; 14% of their customers said they would not have visited the city at all without Airbnb.Today, City CarShare members save an average of more than $8,000 per year compared with the costs of private car ownership. Studies have shown, for example, that for every reduction of 15,000 owned cars, a city keeps $127 million in the local economy as people are able to get what they need within a smaller geographic area.

The Sharing Economy

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The Sharing Economy

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