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Russian and international collaborative consumption
projects in Russia, their comparative analysis,
problems and prospects
By Kunitsyna Elena
MMC-161
Content
 Introduction. What is “collaborative consumption"?
 Project 1. Garderob
 Project 2. Rentmania
 Project 3. Anytime
 Comparative analysis of projects
 Problems of the projects
 Possibilities of projects
 Conclusion
What is “collaborative consumption"?
Collaborative Consumption – is the main part of sharing economy,
an economic model in which individuals are able to borrow or rent
assets owned by someone else. The sharing economy model is most
likely to be used when the price of a particular asset is high and the
asset is not fully utilized all the time.
http://www.investopedia.com/terms/s/sharing-economy.asp
What is “collaborative consumption"?
http://www.investopedia.com/terms/s/sharing-economy.asp
Sharing economies allow
individuals and groups to
make money from
underused assets. In this
way, physical assets are
shared as services. For
example, a car owner may
allow someone to rent out
her vehicle while she is not
using it, or a condo owner
may rent out his condo
while he’s on vacation.
BREAKING DOWN 'Sharing Economy'
Communities of people have shared the use of assets for
thousands of years, but the advent of the Internet has made it
easier for asset owners and those seeking to use those assets
to find each other. This sort of lending is sometimes referred to
as a peer-to-peer (P2P) rental market.
http://www.investopedia.com/terms/s/sharing-economy.asp
CONSTITUENS OF SHARING ECONOMY
People: Sharing of different resources/entities take place between different individuals who are
active participants. Being suppliers and recipients of goods and services, people from
various spheres combine to form the base of SE.
Production and Distribution: Production of goods as well as services is taken up by individuals
or organisations who then distribute them to customers. The presence of internet connectivity
helps enormously in development and distribution helping mitigate geographical limitations.
Ecofriendly behaviour: SE helps save the environment by promoting sustainability of goods
and services. By constant re-use and recycling, SE helps enhance the environment
around us and reduce carbon footprints at a large scale.
Communication: Being a transparent system to constantly enhance and improve customer
experience, knowledge in an SE is open and accessible. This implies efficient and robust
communication at different strata which helps the economy thrive. It goes without saying that
technology plays an indispensable role in communication.
Future: The entire point of sharing is to build a robust, sustainable and vibrant economy with an
eye set firmly on the future. Considering future implications while providing stable products
helps an SE function successfully in a harmonic manner.
http://blog.grabonrent.com/sharing-economy-know-2/
PROJECT 1 “GARDEROB”
“Garderob” (http://gardbe.ru) started in 2015 in Moscow by young
businessman Eugeniy Volk. This service allows to rent people full wardrobe
for a week for individual (1,990rub) or monthly (7,900rub) costs.
Customers can choose and
mark clothes that they like on
the site and a stylist adds three-
to-four items based on a client’s
profile, making the contents of a
delivery box.
After return, clothes
are professionally cleaned and
inspected and go to other
customers.
http://www.rbc.ru/own_business/10/06/2016/575a75649a79473b46211de6
PROJECT 1 “GARDEROB”
”Clothing and accessories often have high
value but low usage — characteristics of
other items that have proved popular in
sharing consumption models”, explains
Eugeniy. “It’s quite common to have
clothing that costs three figures or four
figures,” he says, many of which are bought
and worn only occasionally.
By loaning clothing on a pay-per-use basis,
“Garderob” also lower the cost of items,
giving customers access to aspirational
brands they couldn’t usually afford. With
more spending power and choice, but less
commitment, consumers can use rental
sites to constantly update their wardrobes,
enabling them to keep up with fashion’s
fast-turning trend cycles.
http://www.rbc.ru/own_business/10/06/2016/575a75649a79473b46211de6
PROJECT 1 “GARDEROB”
“Garderob” started with a budget of 400
thousand rubles: 100 thousand rubles of
own savings and 300 thousand rubles
collected on the crowdfunding site
'Boomstarter‘. The pilot launch, which
lasted 4 months, has brought about 200
customers to the project and 3 million
rubles revenue.
PROJECT 2 “RENTMANIA”
http://www.rbc.ru/own_business/10/06/2016/575a75649a79473b46211de6
“Rentmania” (https://rentmania.org) is an online platform where everyone can
give or take something for rent. This site accumulates many goods from
different categories: clothes, children’s goods, sports and tourist equipment
electronics, tools and other. The company regulates neither the rent price
not the deposit, but they take 20% of the price from each deal.
On average you can rent goods for 10% from the market price.
PROJECT 2 “RENTMANIA”
www.rbc.ru/own_business/10/06/2016/575a75649a79473b46211de6
In spring 2013, Rentmania received an investment from the Foundation
for the Development of Internet Initiatives amounting to 1.4 million
rubles and later a grant of 1 million rubles from the State Bortnik Fund.
Now the company is having negotiations with two other funds about
attracting further investment rounds
PROJECT 3 “ANYTIME”
“Anytime” is a carsharing project. Carsharing is a model of car rental
where people rent cars for short periods of time, often by the hour.
They are attractive to customers who make only occasional use of a vehicle,
as well as others who would like occasional access to a vehicle of a different
type than they use day-to-day.
https://en.wikipedia.org/wiki/Carsharing
Carsharing contributes to sustainable
transport because it is a less car
intensive means of urban transport,
and it can reduce car ownership at
an estimated rate of one rental car
replacing 15 owned vehicles.
PROJECT 3 “ANYTIME”
“Anytime” is the first russian carsharing project by businessman Roman
Ilkanaev. You can rent any car that is close to you or book it through the
website or mobile app for 20 minutes before use. You can drive to your
destination and just leave the car in any permitted parking.
You no need to go to
the office every time
you want to rent a
car nor to waste time
filling piles of
documents for each
rental, nor to return
the car back to the
agency's office.
PROJECT 3 “ANYTIME”
Since April 2013, the service resonated with 1,000
customers. In August and September the monthly
revenue of "Sitikar" amounted to 1.5 million rubles.
Prior to that, it had been growing by 30% per month.
To reach the operating profit with 50 cars, you need
3,000 customers, according to Yakubov. "Sitikar"
intends to increase the park: Yakubov wants to lease
20 cars of the BMW 1-Series by the end of the year
and is negotiating with representatives of Chevrolet
and Volkswagen.
Comparative analysis of projects
Gargerob Rentmania Anytime
Field Rental Clothes Rental Goods Carsharing
Prevalence Moscow Moscow Moscow
Experience Since 2015 Since 2013 Since 2012
Benefit Up to 90% savings on
average (rent clothes VS
buy clothes)
Up to 90% savings on
average (rent goods
VS buy goods)
Up to 50% cheaper than
taxi
Investments 400,000 rub 2,400,400 rub No information
Revenue 3,000,000 rub 50,000 per month Unprofitable at this
moment
Price for customers 1,990 rubmonth 20% of deal 5rubmin
Problems of the projects
“People and the media don’t talk about the
sharing economy in Russia,” says Gidirim,
“youdo” CEO. “Russians, especially in
Moscow, are used to paying and saving
money is not a priority. We still like to be
flash and it’ll take time before people realise
that that’s not the purpose of living. A
Russian will never tell his friends that he
saves money. No one will understand. The
answer will be, do you have problems? Don’t
you have money? Are you sure you’re OK?”
Unlike in Europe or the US, where the term "sharing economy" has become
a buzzword, with companies such as Uber and Airbnb taking up endless
column inches, such collaborative enterprises are still nascent in Russia —
and not always successfully executed.
http://calvertjournal.com/articles/show/3303/sharing-economy-peer-to-peer-russia
Problems of the projects
One reason is the value placed on ownership that followed the collapse of the
Soviet Union, which was by contrast marked by decades of shortages and
communal living. “We lived in a "sharing economy" for so long, that now we
desperately want to be owners,” says Karen Kazaryan, chief analyst at the
Russian Association for Electronic Communications.
“Owning a car is a status symbol but not
in the way that you probably think. You
have to go back to the Soviet Union when
quite a lot of people had the money to buy
cars but couldn’t because there weren’t
enough. So a car became not just a
symbol of wealth but of connections. It’s
the same with flats. After living in
communal flats, getting even a small and
cheap one that was yours seemed like a
miracle “
http://calvertjournal.com/articles/show/3303/sharing-economy-peer-to-peer-russia
Problems of the projects
Another hangover from the Soviet
Union is the lack of trust between
strangers, says Kazaryan, essential
for so many of the sharing economy
services.
As a result, services such as Airbnb
in Russia, which launched in 2012,
have several idiosyncrasies. Search
for places to stay in Moscow and
you’ll notice clusters of apartments
all owned by the same "person" —
rental businesses posing (not very
succesfully) as private landlords
http://calvertjournal.com/articles/show/3303/sharing-economy-peer-to-peer-russia
Problems of the projects
http://www.slideshare.net/TorqueSolutions/sharing-economy-38723161
Problems of the projects
http://calvertjournal.com/articles/show/3303/sharing-economy-peer-to-peer-russia
As for taxis, Uber, the private "driver-for-hire" service based in San
Francisco, has experienced its fair share of challenges in Russia. Although
there has been a shift towards booking licensed taxis in cities such as
Moscow, many Russians are still just as content to hop into a “gypsy cab”.
These illegal “taxis” are simply flagged down and the fee negotiated.
Uber arrived in Russia in 2013, other taxi
apps which work along similar lines, had
already cornered the market. Now Uber
faces a fresh challenge. This September,
Alexander Starovoitov, the deputy chairman
of the State Duma’s Committee on
Transport, wrote to President Vladimir Putin,
exhorting him to ban Uber in order to protect
the existing taxi market.
Possibilities
of projects
PwC believe traditional rental
industries are being disrupted by the
sharing economy as established
industries mature and are displaced
by a “Sharing S-curve”. In PwC
research conducted in 2014, they
compared the revenue potential in five
new ‘sharing economy’ sectors (peer-
to-peer finance, online staffing, peer-
to-peer accommodation, car sharing
and music and video streaming) with
the potential in five traditional ‘rental’
sectors (equipment rental, B&B and
hostels, car rental, book rental and
DVD rental).
http://www.pwc.co.uk/issues/megatrends/collisions/sharingeconomy/the-sharing-economy-sizing-the-revenue-opportunity.html
Possibilities
of projects
http://www.pwc.co.uk/issues/megatrends/collisions/sharingeconomy/the-sharing-economy-sizing-the-revenue-opportunity.html
PwC research conducted in
2014 estimated that the five
main sharing economy sectors
generate $15bn in global
revenues, making up just 5% of
total revenue generated by the
ten sectors we looked at.
However, by 2025, these same
five sharing economy sectors
could generate over half of
overall sales in the ten sectors –
a potential revenue opportunity
worth $335bn. We estimate the
UK’s slice of the pie could be
worth around $15bn (or £9bn) in
2025.
Conclusion
Sharing economy has become a burgeoning business in today’s world. From the
sharing of cars and bicycles to the renting out of rooms, Sharing Economy has
undoubtedly become the next big thing. Encompassing a wide array of aspects
which include exchanging, shared ownership, renting, recycling, crowdfunding,
peer-to-peer transfer, subscription based models, and the like, it is a hybrid
economy in itself and can be thought of as an advanced form of the barter
system. The sharing economy is too big an opportunity to miss—or too big a risk
not to mitigate.
“If the economics of car sharing can enable folks to afford a new hybrid or
electric car, then sales objectives and sustainability objectives are now
actually aligned. So CSR can actually be driven by profit motive, which is
an incredibly powerful benefit of the sharing economy.”
Padden Guy Murphy, Head of Business Partnerships, Getaround
https://www.pwc.com/us/en/technology/publications/assets/pwc-consumer-intelligence-series-the-sharing-economy.pdf

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Presentation

  • 1. Russian and international collaborative consumption projects in Russia, their comparative analysis, problems and prospects By Kunitsyna Elena MMC-161
  • 2. Content  Introduction. What is “collaborative consumption"?  Project 1. Garderob  Project 2. Rentmania  Project 3. Anytime  Comparative analysis of projects  Problems of the projects  Possibilities of projects  Conclusion
  • 3. What is “collaborative consumption"? Collaborative Consumption – is the main part of sharing economy, an economic model in which individuals are able to borrow or rent assets owned by someone else. The sharing economy model is most likely to be used when the price of a particular asset is high and the asset is not fully utilized all the time. http://www.investopedia.com/terms/s/sharing-economy.asp
  • 4. What is “collaborative consumption"? http://www.investopedia.com/terms/s/sharing-economy.asp Sharing economies allow individuals and groups to make money from underused assets. In this way, physical assets are shared as services. For example, a car owner may allow someone to rent out her vehicle while she is not using it, or a condo owner may rent out his condo while he’s on vacation.
  • 5. BREAKING DOWN 'Sharing Economy' Communities of people have shared the use of assets for thousands of years, but the advent of the Internet has made it easier for asset owners and those seeking to use those assets to find each other. This sort of lending is sometimes referred to as a peer-to-peer (P2P) rental market. http://www.investopedia.com/terms/s/sharing-economy.asp
  • 6. CONSTITUENS OF SHARING ECONOMY People: Sharing of different resources/entities take place between different individuals who are active participants. Being suppliers and recipients of goods and services, people from various spheres combine to form the base of SE. Production and Distribution: Production of goods as well as services is taken up by individuals or organisations who then distribute them to customers. The presence of internet connectivity helps enormously in development and distribution helping mitigate geographical limitations. Ecofriendly behaviour: SE helps save the environment by promoting sustainability of goods and services. By constant re-use and recycling, SE helps enhance the environment around us and reduce carbon footprints at a large scale. Communication: Being a transparent system to constantly enhance and improve customer experience, knowledge in an SE is open and accessible. This implies efficient and robust communication at different strata which helps the economy thrive. It goes without saying that technology plays an indispensable role in communication. Future: The entire point of sharing is to build a robust, sustainable and vibrant economy with an eye set firmly on the future. Considering future implications while providing stable products helps an SE function successfully in a harmonic manner. http://blog.grabonrent.com/sharing-economy-know-2/
  • 7. PROJECT 1 “GARDEROB” “Garderob” (http://gardbe.ru) started in 2015 in Moscow by young businessman Eugeniy Volk. This service allows to rent people full wardrobe for a week for individual (1,990rub) or monthly (7,900rub) costs. Customers can choose and mark clothes that they like on the site and a stylist adds three- to-four items based on a client’s profile, making the contents of a delivery box. After return, clothes are professionally cleaned and inspected and go to other customers. http://www.rbc.ru/own_business/10/06/2016/575a75649a79473b46211de6
  • 8. PROJECT 1 “GARDEROB” ”Clothing and accessories often have high value but low usage — characteristics of other items that have proved popular in sharing consumption models”, explains Eugeniy. “It’s quite common to have clothing that costs three figures or four figures,” he says, many of which are bought and worn only occasionally. By loaning clothing on a pay-per-use basis, “Garderob” also lower the cost of items, giving customers access to aspirational brands they couldn’t usually afford. With more spending power and choice, but less commitment, consumers can use rental sites to constantly update their wardrobes, enabling them to keep up with fashion’s fast-turning trend cycles. http://www.rbc.ru/own_business/10/06/2016/575a75649a79473b46211de6
  • 9. PROJECT 1 “GARDEROB” “Garderob” started with a budget of 400 thousand rubles: 100 thousand rubles of own savings and 300 thousand rubles collected on the crowdfunding site 'Boomstarter‘. The pilot launch, which lasted 4 months, has brought about 200 customers to the project and 3 million rubles revenue.
  • 10. PROJECT 2 “RENTMANIA” http://www.rbc.ru/own_business/10/06/2016/575a75649a79473b46211de6 “Rentmania” (https://rentmania.org) is an online platform where everyone can give or take something for rent. This site accumulates many goods from different categories: clothes, children’s goods, sports and tourist equipment electronics, tools and other. The company regulates neither the rent price not the deposit, but they take 20% of the price from each deal. On average you can rent goods for 10% from the market price.
  • 11. PROJECT 2 “RENTMANIA” www.rbc.ru/own_business/10/06/2016/575a75649a79473b46211de6 In spring 2013, Rentmania received an investment from the Foundation for the Development of Internet Initiatives amounting to 1.4 million rubles and later a grant of 1 million rubles from the State Bortnik Fund. Now the company is having negotiations with two other funds about attracting further investment rounds
  • 12. PROJECT 3 “ANYTIME” “Anytime” is a carsharing project. Carsharing is a model of car rental where people rent cars for short periods of time, often by the hour. They are attractive to customers who make only occasional use of a vehicle, as well as others who would like occasional access to a vehicle of a different type than they use day-to-day. https://en.wikipedia.org/wiki/Carsharing Carsharing contributes to sustainable transport because it is a less car intensive means of urban transport, and it can reduce car ownership at an estimated rate of one rental car replacing 15 owned vehicles.
  • 13. PROJECT 3 “ANYTIME” “Anytime” is the first russian carsharing project by businessman Roman Ilkanaev. You can rent any car that is close to you or book it through the website or mobile app for 20 minutes before use. You can drive to your destination and just leave the car in any permitted parking. You no need to go to the office every time you want to rent a car nor to waste time filling piles of documents for each rental, nor to return the car back to the agency's office.
  • 14. PROJECT 3 “ANYTIME” Since April 2013, the service resonated with 1,000 customers. In August and September the monthly revenue of "Sitikar" amounted to 1.5 million rubles. Prior to that, it had been growing by 30% per month. To reach the operating profit with 50 cars, you need 3,000 customers, according to Yakubov. "Sitikar" intends to increase the park: Yakubov wants to lease 20 cars of the BMW 1-Series by the end of the year and is negotiating with representatives of Chevrolet and Volkswagen.
  • 15. Comparative analysis of projects Gargerob Rentmania Anytime Field Rental Clothes Rental Goods Carsharing Prevalence Moscow Moscow Moscow Experience Since 2015 Since 2013 Since 2012 Benefit Up to 90% savings on average (rent clothes VS buy clothes) Up to 90% savings on average (rent goods VS buy goods) Up to 50% cheaper than taxi Investments 400,000 rub 2,400,400 rub No information Revenue 3,000,000 rub 50,000 per month Unprofitable at this moment Price for customers 1,990 rubmonth 20% of deal 5rubmin
  • 16. Problems of the projects “People and the media don’t talk about the sharing economy in Russia,” says Gidirim, “youdo” CEO. “Russians, especially in Moscow, are used to paying and saving money is not a priority. We still like to be flash and it’ll take time before people realise that that’s not the purpose of living. A Russian will never tell his friends that he saves money. No one will understand. The answer will be, do you have problems? Don’t you have money? Are you sure you’re OK?” Unlike in Europe or the US, where the term "sharing economy" has become a buzzword, with companies such as Uber and Airbnb taking up endless column inches, such collaborative enterprises are still nascent in Russia — and not always successfully executed. http://calvertjournal.com/articles/show/3303/sharing-economy-peer-to-peer-russia
  • 17. Problems of the projects One reason is the value placed on ownership that followed the collapse of the Soviet Union, which was by contrast marked by decades of shortages and communal living. “We lived in a "sharing economy" for so long, that now we desperately want to be owners,” says Karen Kazaryan, chief analyst at the Russian Association for Electronic Communications. “Owning a car is a status symbol but not in the way that you probably think. You have to go back to the Soviet Union when quite a lot of people had the money to buy cars but couldn’t because there weren’t enough. So a car became not just a symbol of wealth but of connections. It’s the same with flats. After living in communal flats, getting even a small and cheap one that was yours seemed like a miracle “ http://calvertjournal.com/articles/show/3303/sharing-economy-peer-to-peer-russia
  • 18. Problems of the projects Another hangover from the Soviet Union is the lack of trust between strangers, says Kazaryan, essential for so many of the sharing economy services. As a result, services such as Airbnb in Russia, which launched in 2012, have several idiosyncrasies. Search for places to stay in Moscow and you’ll notice clusters of apartments all owned by the same "person" — rental businesses posing (not very succesfully) as private landlords http://calvertjournal.com/articles/show/3303/sharing-economy-peer-to-peer-russia
  • 19. Problems of the projects http://www.slideshare.net/TorqueSolutions/sharing-economy-38723161
  • 20. Problems of the projects http://calvertjournal.com/articles/show/3303/sharing-economy-peer-to-peer-russia As for taxis, Uber, the private "driver-for-hire" service based in San Francisco, has experienced its fair share of challenges in Russia. Although there has been a shift towards booking licensed taxis in cities such as Moscow, many Russians are still just as content to hop into a “gypsy cab”. These illegal “taxis” are simply flagged down and the fee negotiated. Uber arrived in Russia in 2013, other taxi apps which work along similar lines, had already cornered the market. Now Uber faces a fresh challenge. This September, Alexander Starovoitov, the deputy chairman of the State Duma’s Committee on Transport, wrote to President Vladimir Putin, exhorting him to ban Uber in order to protect the existing taxi market.
  • 21. Possibilities of projects PwC believe traditional rental industries are being disrupted by the sharing economy as established industries mature and are displaced by a “Sharing S-curve”. In PwC research conducted in 2014, they compared the revenue potential in five new ‘sharing economy’ sectors (peer- to-peer finance, online staffing, peer- to-peer accommodation, car sharing and music and video streaming) with the potential in five traditional ‘rental’ sectors (equipment rental, B&B and hostels, car rental, book rental and DVD rental). http://www.pwc.co.uk/issues/megatrends/collisions/sharingeconomy/the-sharing-economy-sizing-the-revenue-opportunity.html
  • 22. Possibilities of projects http://www.pwc.co.uk/issues/megatrends/collisions/sharingeconomy/the-sharing-economy-sizing-the-revenue-opportunity.html PwC research conducted in 2014 estimated that the five main sharing economy sectors generate $15bn in global revenues, making up just 5% of total revenue generated by the ten sectors we looked at. However, by 2025, these same five sharing economy sectors could generate over half of overall sales in the ten sectors – a potential revenue opportunity worth $335bn. We estimate the UK’s slice of the pie could be worth around $15bn (or £9bn) in 2025.
  • 23. Conclusion Sharing economy has become a burgeoning business in today’s world. From the sharing of cars and bicycles to the renting out of rooms, Sharing Economy has undoubtedly become the next big thing. Encompassing a wide array of aspects which include exchanging, shared ownership, renting, recycling, crowdfunding, peer-to-peer transfer, subscription based models, and the like, it is a hybrid economy in itself and can be thought of as an advanced form of the barter system. The sharing economy is too big an opportunity to miss—or too big a risk not to mitigate. “If the economics of car sharing can enable folks to afford a new hybrid or electric car, then sales objectives and sustainability objectives are now actually aligned. So CSR can actually be driven by profit motive, which is an incredibly powerful benefit of the sharing economy.” Padden Guy Murphy, Head of Business Partnerships, Getaround https://www.pwc.com/us/en/technology/publications/assets/pwc-consumer-intelligence-series-the-sharing-economy.pdf