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The Sharing Economy - Training Toolkit Based on Strengths, Weaknesses, Opportunities and Threats


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Training toolkit designed to illustrate market and policy drivers, opportunities and challenges ahead for the sharing economy.

Published in: Business, Technology

The Sharing Economy - Training Toolkit Based on Strengths, Weaknesses, Opportunities and Threats

  1. 1. MARCO TORREGROSSA Managing Director Euro Freelancers & European Sharing EconomyCoalition The Sharing Economy TrainingToolkit Based on Strength, Weaknesses, Opportunities andThreats (SWOT)
  2. 2. Summary 1. Definition 2. Examples 3. Characteristics 4. Technology 5. Business 6. Regulation 7. Sustainability 8. Developments 9. Freelance Economy
  3. 3. Definition
  4. 4. The Sharing Economy “A social and economic system driven by network technologies and peer communities that enables the sharing of underutilised assets from space to skills to objects and money, transforming how we produce, consume, finance and learn”. Source: Collaborative Lab
  5. 5. Source: Collaborative Lab
  6. 6. Source: ShareNL andWhat’s Mine isYours:The Rise of Collaborative Consumption.
  7. 7. Underlining Principles  Optimisation of underutilised assets (tangible and intangible) with idle capacity  Shift from individual ownership to shared access  Disaggregated physical assets consumed as services  Horizontal value chains  Collaborative digital technologies  Trust between strangers  More convenience, choices and empowerment
  8. 8. It is Already Happening …
  9. 9. Source: Aldo deJong, Claro Partners
  10. 10. The 3 Systems of the Sharing Economy 1. Redistribution Markets redistribute things from where they are not needed to someone or somewhere they’re needed. – Examples include eBay (auction site), Craigslist (local classified ads), and niche marketplaces such as 99dresses (clothes), thredUP (children’s clothing), yerdle (various) 2. Product Service Systems allow members to pay for the benefit of using a product without needing to own it outright. – Examples include Zipcar, Getable, Snapgoods, RelayRides,City CarShare, Velib, bicycle sharing platforms 3. Collaborative Lifestyles platforms allow for the sharing and exchange of less tangible assets such as time, skills, money, experiences or space. – Examples include Skillshare,Airbnb,TaskRabbit, Lending Club, LiquidSpace, Vayable, time banks and local exchange systems such as Sel du Lac Source:Young Global Leaders Sharing Economy Dialogue Position Paper 2013
  11. 11. Worldwide Blurred Distinctions  Professional and personal life  Public and private sectors  Manufacturing and services  Science and society  Multinationals and small businesses  “Proprietas” and “Usus”
  12. 12. Examples
  13. 13. Selected Examples of Sharing Economy Disruptions  Retailers disrupted by -> Zilok (goods exchanges)  Hospitality disrupted by -> Airbnb (accommodation)  Banks disrupted by -> Zopa (money lending)  Transportation disrupted by -> Zipcar (cars rental)  Staffing disrupted by ->Taskrabbit (small tasks)  Universities disrupted by -> Skillshare (skills)  Design disrupted by -> 99design (graphic design)  Journalism disrupted by GrassWire (newsroom)
  14. 14. Selected Examples of Sharing Economy Disruptions (Continued)  Food disrupted by -> Feastly (meals)  Clothing disrupted by -> sixosix (cloths exchange)  Art disrupted by -> getARTup (art exchange)  Office Rental disrupted by -> liquidspace (co-working places)  Dating disrupted by -> Rent a Friend (friendship)  Travelling disrupted by -> Easynest (travel costs sharing)  Volunteering disrupted by -> TimeRepublik (volunteering)  Manufacturing disrupted by -> 3D Printing (co-creation manufacturing)
  15. 15. Sharing Economy Recent Success Source: Ouishare
  16. 16. Source: Collaborative Lab
  17. 17. Characteristics
  18. 18. The Sharing Economy Drivers (Social)  Renewed belief in the importance of the community (virtual and real) with sense of togetherness, intimacy, trust  Population growth: more people - smaller spaces - less stuff  Shift in power balance from centralised organisations to distributed networks of people  Global recession that has shocked consumers behaviours  Independent lifestyle trend above all among young, IT savvy and urban people  Active citizenship  Disillusionment with consumerist culture
  19. 19. The Sharing Economy Drivers (Economic)  Monetise excess and the idling capacity of assets  Need to reduce carbon footprint by sharing assets, stretching the life cycle of a product and reducing waste  Rising costs of production and of living, e.g. energy, food prices  Influx ofVC Funding  Economic disparities and shifting of resources  Inaccessible luxury items  Pervasive unemployment
  20. 20. The Sharing Economy Drivers (Technological)  Peer to peer social networks  Mobile and real time technologies  Peer to peer payments  Internet of things
  21. 21. Overarching Drivers  Convenience  Costs saving  Desire for authentic experiences  Desire for quality goods and services
  22. 22. The Sharing Economy Consequences  More efficient allocation of underutilized resources  Favourable effects on competition, forcing traditional suppliers to innovate and reduce their prices  Greater consumer choice with lower transaction costs  New distribution lines to support multi-user product life cycles  Increases happiness and contentment due to positive social interactions  Lowers barriers to entrepreneurship  Fosters local production, exchanges, investments  Shifts power from top down, from centralized institutions to decentralized, connected communities and distributed networks
  23. 23. Organisational Shift
  24. 24. Where Sharing Economy Works Best  The asset needs to become “liquid,” i.e. easy to share e.g. spaces and skills  The asset needs to have high idling capacity, i.e. low frequency of use e.g. cars or spare spaces  Assets that are expensive to own outright e.g. solar panels and luxury goods  Assets that quickly become obsolete e.g. baby goods and maternity-related clothing and products  Assets that have no demand or supply limitations, or whose value increases because of the fact it is shared e.g. travel experiences
  25. 25. Technology
  26. 26. The 3 Phases of Internet Evolution Source:The Sharing Economy,Torben Rick
  27. 27. Power ofTechnology in the Sharing Economy  Increased efficiency  Enables to build trust/accountability among strangers  Peer to peer reviews and stars rating systems
  28. 28. HowTrust is Built Online  Identity verification systems  Social network integration  Similar interests and values  Comments, rating and reviews
  29. 29. OLAF BLECKER
  30. 30. Online Reputation Data to BuildTrust Among Strangers  Extraction and aggregation of online reputation  Reputation capital as a credit to spend via data banks beyond marketplaces  New forms of payment like virtual or peer-to-peer currency (Bitcoin) or social capital (Klout)  Privacy concerns
  31. 31. How to MeasureTrust Source: Aldo deJong, Claro Partners
  32. 32. Challenges of Online Reputation  Is trust universal accross different types of sharing platforms?  Can I trust the „trust platform“ that is collecting all my data?  How will this data be used?  Do these trust aggregation platforms foster control, rather than trust? Source: Francesca Pick, OuiShare
  33. 33. “The original idea of the web was that it should be a collaborative space where you can communicate through sharing information.” -Tim Berners-Lee, the inventor of theWorldWideWeb
  34. 34. Business
  35. 35. The 4 “I” Areas Ripe for Disruption 1. Infrastructures 2. Intermediaries Complex Dictating Distributions Non interactive Enticing control Monopolistic Redundant Diffused Unwanted Inappropriate Expensive 3. Inventories 4. Institutionalisations Centralised Enclosed Burdensome Locked in Proprietary Pervasive Hierarchical Broken trust Unempowering Inaccessible Undemocratised
  36. 36. Recipe for Disruption  Follow an approach that makes it more accessible, more affordable, faster and with higher quality for a large group of people to do what matters to them.  Develop a way of offering a product or service that is difficult for others to replicate, keeping costs radically lower than competitors.  Tackle markets that existing companies are motivated to exit or ignore because they are unprofitable or seemingly too small to matter.
  37. 37. How Companies Get Involved in the Sharing Economy  Partnerships  Investment  Business model reinvention  Tapping into the crowd (crowdsourcing)
  38. 38. Examples from Big CompaniesTapping into the Sharing Economy  Nike (runners communities)  Virgin Atlantic (sharing luggage space)  Lego (pley, renting lego sets)  Groupon (collective buyers power)  French Post (digital identities for registered letters)  Quirky (user-submitted ideas via virtual platforms)  Starbucks (crowdsourcing design)  Dell (crowdsourcing product specifications)  Google Helpouts (skills sharing)
  39. 39. Sharing Economy Partnership Examples  Marriott and Liquid Space  Google and Lending Club  BMW and ParkatmyHouse  GM and RelayRides  Ebay and Patagonia  GE and Quirky  Philips and Indiegogo  Walgreens andTaskRabbit  Western Union and Airbnb  Home Depot and Uber  Kelly Services and oDesk  DHL and MyWays  Uniliver and Carrotmob  Lufthansa and Home Exchange
  40. 40. “The secondhand market opens up [our] brand to a lot of people who can’t afford to buy it first-hand. In a way, it opens up a market to us that we might not have otherwise had.” –Vincent Stanley, Patagonia
  41. 41. Business Models Traditional selling for consumption is no longer the only viable business model. New models of access over traditional ownership include:  Rental  On-demand  Freemium  Subscription  Membership usage  Try-and-buy
  42. 42. Source: Collaborative Lab
  43. 43. Source: Aldo deJong, Claro Partners
  44. 44. Source: Aldo deJong, Claro Partners
  45. 45. Industrial Capitalism Sharing Economy Access controlled by few Empower individuals Cantralised Distributed Monopoly Participative Competitive advantage Open innovation Individual customer Network Design and deliver a product Design exchanges of services
  46. 46. How Companies can Embrace the Sharing Economy and Stay Profitable  Adapt business model to become a service: sell access to goods instead of ownership of those goods e.g. renting, subscribing, premium memberships, loyalty programs etc  Connect buyers and sellers by encouraging and motivating a virtual marketplace  Enable customers to give feedback and build value to company brands via online platform
  47. 47. Source:Jeremiah Owyang, AltimeterGroup
  48. 48. Source:Javi Creaus, Ideas for Change
  49. 49. Benefits for Companies  More efficient, as the crowd helps you to create, distribute and sell your products  Sell same product multiple times  Show durability of products, commitment to sustainability, a thriving community  A long-term extended relationship with customers  Serve new market segments  Drive trial among prospective customers  New value created between people, means new revenues
  50. 50. Benefits for Companies (Continued)  Tap into repeated business transactions  Additional cost of producing other units is very low if redistribution markets are in place  Strengten brand and competitive service  Collect more users feedback and improve service  If you act now, you will have first mover advantage  Own no inventory, warehouses, distribution centers or other ancillary overhead required for most traditional business models to operate
  51. 51. How toTurn Businesses into Platforms  Identify an idle asset  Allow customisation  Prolong product life-cycle  Allow multi-user interaction  Let users and providers rate each other
  52. 52. Marketplace Examples Source:Jeremiah Owyang, Crowd Companies
  53. 53. Consumers Shift Customers are becoming:  Sellers  Producers  Distributors  Lenders  Teachers Customers are beginning to act like:  Hotels  Restaurants  Transport operators  Manufacturers  Banks  Universities
  54. 54. Common Reasons for Start-up Failures  Difficulty in building a critical mass of supply and demand  Difficulty in creating the inventory (especially with geographical dispersion)  Higher-than-expected operating costs (customer service, insurance, lobbying, customer acquisition, security, etc)  Competition from free alternatives  Customers sidestepping the middleman platform  Too much revenue going back to suppliers  Mounting opposition from conventional industry groups  Neglecting advocacy for regulatory change
  55. 55. Regulation
  56. 56. Regulations and the Sharing Economy Why the regulators' sudden interest?  Scale: Rule enforcers are beginning to realize how big the collaborative marketplace is growing.  Cash: As collaborative start-ups begin to monetise, governments smell taxable revenue.  Consumer Protection: Consumers and providers need an element of legal protection to exchange services between themselves.
  57. 57. Opportunities for a “Sharing City”  High population density and more assets to share  Tackling congestion and efficient use of space  Setting up “sharable” infrastructures  Bringing together residents and neighbourhoods  Redefining public services, innovation and civic engagement  Commissioning studies on sharing assets within the city and set up working groups to identify opportunities  Incentivising public investments (grants, subsidies)  Investing in co-creation centres and sharing of unused public spaces
  58. 58. Seoul, South Korea:The Self Proclaimed “Sharing City” Act No. 5396 (Act for Promoting Sharing) The Seoul Metropolitan Government has declared the Sharing City as a new city paradigm. On 20 September 2012, the government disclosed its plan for promoting the “Sharing City Seoul” project, which includes 20 sharing programs and policies for generating or diffusing infrastructure to promote and enable sharing-based platforms.
  59. 59. The Shareable Cities Resolution in US The Resolution was adopted by the US Conference of Mayors in June 2013!The resolution, co-sponsored by fifteen mayors including Mayor Lee of San Francisco and Mayor Bloomberg of NewYork City, states that: “mayors resolve to make their cities more shareable, encourage better understanding of the sharing economy, and create local task forces to review and address regulations that may hinder participation in the sharing economy.”
  60. 60. Questions for Cities in the EU  What opportunities to pass a similar resolution or a manifesto among the cities signatories of the EU Covenant of Mayors?  What shared infrastructures and urban development plans are needed to help the sharing economy take root at city level?  What department, agency, working group or other vehicle is needed to lead collaborative economy strategy and vision within the local government?  Does your city have any plans to do a systematic mappings, an impact assessment or life-cycle analysis of its own assets which have idling capacity and/or might be shared?  Does your city have any plans to create a hyper-local directory of examples in the collaborative economy?  How can your city promote or create sharing economy platforms and public/private partnerships with start-ups in this space?  How can the sharing economy help to achieve your city’s targets in the framework of other initiatives e.g. carbon reduction, climate action plans, Covenant of Mayors, recycling, regeneration, resource efficiency?  How can your city mitigate the impact of existing outdated regulations that unintentionally obstruct collaborative ventures and new business models?
  61. 61. Questions for Cities in the EU (Continued)  How can your city incentivise public investments and community-focused financing mechanisms in the sharing economy ecosystem e.g. investing in incubators and accelerators, research projects, building capacity of collaborative economy companies, networks and cooperatives, shared infrastructures, micro- entrepreneurship, social innovation etc?  How can your city regulate on the sharing economy on a sector-by-sector basis, incorporating feedback from collaborative companies, end-users and involving a broad set of stakeholders in consultations?  How could your city take the lead in the creation of a “Shareable Cities Network” at EU level?  Under which existing EU city network can sharing cities be embedded or incubated?  What plans does your city have to review/establish laws in the field of taxation, zoning, insurance and licensing to allow the sharing economy to scale?  What collaborative sectors have the greatest traction in your city among transportation, housing, food and retail or others and how to leverage their outreach?  How does your local procurement system favour public tenders with criteria that include shareability or collaboration?
  62. 62. Examples of PPPs Between Cities and Sharing Economy Enterprises  Bike/car sharing infrastructures and pick up points  Smart grids for renewable energy excess output sharing  Empty public buildings utilisation  Partnership for emergency preparedness (e.g. airbnb & San Francisco during superstorm Sandy)  Reallocation of redundant workers to maker spaces  Local group purchasing platforms for consumers  Investment in coworking spaces  Establishment of hubs for reusable products diverted from landfill
  63. 63. The EU and the Sharing Economy Some common goals: 1. Increase resource efficiency 2. Create jobs and prosperity 3. Build community participation 4. Advance social innovation Great opportunity to combine efforts around joint priorities and mainstream a stronger, more resilient Europe in view of meeting the EU2020 objectives.
  64. 64. The EU 2020 Strategy and the Sharing Economy “The consumption of goods and services should take place in accordance with smart, sustainable and inclusive growth and should also have an impact on job creation, productivity and economic, social and territorial cohesion". - EU 2020Strategy
  65. 65. Taxation Insurance Labour Licensing / Permitting Health and safety Digital Liability Zoning Consumer protection Environment Certification Data privacy Patents IPR Finance RegulatoryTopics Impacting the Sharing Economy
  66. 66. EU Policies and the Sharing Economy  Problem: Current lack of tailored European policy frameworks and institutional support for regulating this new sector. Absence of regulatory measures creates uncertainty that may inhibit investments and development of the sector and can result in companies trying to exploiting loopholes in the legislative vacuum, damaging consumer trust.  Solution:The European Sharing Economy Coalition aims to inspire European policy makers by providing them with a tangible narrative, available scalable solutions and an innovative vision for faster adoption of the Sharing Economy across policies, sectors and markets in Europe.
  67. 67. The European Sharing Economy Coalition The Coalition promotes and monitors progress towards European and national policy that:  Mainstream the Sharing Economy By campaigning to raise awareness, improve visibility and build capacity of community and policy leaders.  Sustain the Sharing Economy By advocating for fair and sensible regulations, ensuring the Sharing Economy becomes a political priority at European level.  Scale Up the Sharing Economy By promoting leadership and best practice exchange, aiming towards scalability and transferability in the EU.  Invest in the Sharing Economy By raising EU funding to kick start relevant pilot projects and platforms all over Europe, above all in cities. MA S S IVE
  68. 68. Recommendations for EU Policy Makers  Create an environmental for sharing economy enterprises to grow given the economic benefits they bring. If necessary, pursue smart and targeted regulations.  Treat sharing economy enterprises as facilitators in a p2p marketplace, not as traditional employers.  Legislate only as a complement, when there are gaps (market failures).  Create a level playing field among p2p business and traditional businesses.  Measure impact and make policy decisions that are data- driven and flexible given the pace of change in this new market.  Facilitate a mechanisms for local authorities and cities to learn about the sharing economy and how to develop appropriate rules and enabling infrastructures.
  69. 69. “Whether it is about cabs, accommodation, music, flights, the news or whatever, the fact is that digital technology is changing many aspects of our lives.We cannot address these challenges by ignoring them, by going on strike, or by trying to ban these innovations out of existence’’. - Neelie Kroes, FormerVice-President of the EuropeanCommission
  70. 70. Sustainability
  71. 71. Global ConsumptionTrends
  72. 72. Source: Ellen MacArthur Foundation
  73. 73. Current World Resource Consumption  Market forces rather than human needs dictates the distribution of resources, goods and services  Commercialisation has infiltrated every aspect of our lives, encouraging highly individualistic and unsustainable consumerist lifestyles  Natural resources are usurped at far greater rates than they can be replenished  At least 18 international conflicts have been triggered by competition for resources since 1990 and this is set to increase in light of a rising world population, soaring global consumption and rapidly disappearing energy supplies
  74. 74. Sustainability Benefits Environmental  Less resource use and CO2 emissions, if number of new products manufactured is reduced  Higher demand for good quality products, if products are to be lend or leased, repaired, upgraded multiple times  Favours eco-design for multi-user experiences, durability and repeat customisation for shareable products Social  Enhances social interaction, community building and trust between citizens  Access to high quality products also for low income consumers  Lowers barriers to entrepreneurship  Helps learning new skills
  75. 75. Sustainability Concerns Rebound effects (offset the sustainability benefits)  Does sharing under-utilised items leads to longer lasting and higher quality products or leads to increased and faster consumption?  Does home sharing lead to a more sustainable tourism or leads to more tourism, hence higher environmental impacts?  Does car sharing lead to more sustainable transport or the money saved from car sharing is reused into long distance travel?  Does office sharing lead to more sustainable energy use?  Does movie streaming lead to higher carbon impact coming from the intensive energy use caused by inefficient equipment?
  76. 76. Sustainability Concerns  May increase faster consumption, if sharing is used as trial before buying new products  May increase disposal of old items in exchange of newer ones, if shared item is cheaper and with lower quality  May increase transport, distribution, logistics and related CO2 emissions (e.g. long distance shipping and delivery of items from home to home)  May increase social disparities, social dumping and job losses
  77. 77. Way Forward for Sustainability and Sharing Economy  Invest in behavioural change, awareness raising campaigns and capacity building to reduce the rebound effect  Create measurement systems for the long-term positive sustainability impacts against key performance indicators  Create minimum environmental performance standards with high benchmarking potential  Commission environmental impact assessment and lifecycle analysis studies on sharing assets above all in large cities
  78. 78. Way Forward for Sustainability and Sharing Economy (Continued)  Support green public procurement favouring sharing economy enterprises  Introduce mandatory requirements for shareable products (e.g. minimum recyclability, reusability, upgradeability and durability)  Promote the creation of awards schemes for the most sustainable sharing economy concepts  Support the development of one sharing economy regional cluster in the EU to accelerate the innovation process
  79. 79. Source: April Rinne
  80. 80. Developments
  81. 81. Source: Frech &Wuest
  82. 82. Market Developments  Movement towards professionalism of sharing services (To Follow -> B&Bs on airbnb)  Reputation and trust to become a new currency (To Follow -> eID legislation)  Accountability in collaborative manufacturing, more business to “police” the system and ensure equal retribution for contributors  More synergies between collaborative consumption and collaborative production (To Follow -> 3D printing, maker movement)  More removal of “middle-men” (To Follow -> from sharing companies owning the stock to individual ownership)  “Shareability” criteria enacted in private procurement along the supply chain  More “unionised” type of associations for sharing economy providers (To Follow - > union of Uber drivers in Seattle)  More sharing economy companies to start CSR programs and CSR internal departments  Rising B2B sharing of manufacturing equipment (To Follow -> Floow2 in the Netherlands)
  83. 83. Market Developments (Continued)  More partnerships between corporates and startups in traction sectors (housing, mobility, retail, food, education) and across EU MemberStates (To Follow -> Marriott/Liquid Space,Google/LendingClub, BMW /ParkatmyHouse, Ebay/Patagonia,GE/Quirky)  More platforms to be shaped as cooperatives, own and financed by users and not byVCs (To Follow -> Coop Europe)  Integration with sensors development and internet of things (To Follow - > smart home appliances and mobile apps)  Increased focus on customer service for sharing enterprises (To Follow -> Uber)  More p2p providers moving into other services along the value chain (To Follow -> airbnb and hospitality industry, uber and logistics industry)  Introduction of “matchmaking in searches” type of algorithms  Aggregation of users’ data and reputation dashboard to boost trust in p2p marketplaces  Shareability index for companies
  84. 84. Source: Michel Bouwens, p2p Foundation
  85. 85. Policy Developments  “Shareability” to be effectively integrated in EU innovation policies (To Follow -> EU2020 Strategy)  More financial support from public authorities to sharing economy startups e.g. on market data collection (To Follow -> CAPs projects of DG Connect e.g. co-working spaces and new H2020 calls)  White Paper and ConsultationConclusions on Crowdfunding (To Follow -> DG Growth and EuropeanCrowdfunding Network)  Possible EU Commission Communication on “Collaborative and Participative Consumption” (To Follow -> DG Health – July 2015)  Recognition of micro-entrepreneurship and freelancing into EU labour legislation (To Follow -> revision of Directive on Professional Qualifications)  More support for harmonised peer2peer finance legislation (To Follow -> Revision of Financial Services Directive)  Emergency response and resilience planning through sharing economy (To Follow -> DG Environment Impact Assessment Reviews)
  86. 86. Policy Developments (Continued)  More cross-sectoral coalitions for advocacy with a focus on top-down approaches (To Follow -> 9Flats,Wimdu, Housetrip alliance in p2p accommodation)  Network of SharingCities to be possibly integrated in the EU IP on Smart Cities (To Follow -> HL Sherpa Group Meeting 31/03/2014 and CoR)  More attention for end-of-life phase in current product designs, as customer will seek durable and shareable products designed for longevity (To Follow -> EU eco-design directive revision)  Sharing Economy and Freelancing Petition in European Parliament or through European Citizens Initiative (To Follow -> 2014 European post- election campaigns)  Consumers protection effectively enacted for electronic payments (To Follow -> EU Consumers Agenda and e-payment directive revision and BEUC)  Direct financial support to high speed broadband projects at local and regional level (To Follow -> EU DigitalAgenda Developments)
  87. 87. Source: Euromonitor International
  88. 88. Challenges to Overcome  Scaling up from the young, urban and IT savvy to a viable alternative for everyone and everywhere  Changing consumers’ habits and cultural barriers e.g. in new EU Member States with rising middle class  Finding a level playing field with incumbents and traditional industries e.g. hotels, taxi operators etc  Friction with trade unions and consumers organisations on workers and consumers rights & safety  Liabilities and the need for targeted insurance products for sharing assets  Fragmented start-up scene, uncertainty about funding after initialVC  Centralisation and potential formation of monopolies (e.g. airbnb, uber) with loss of diversity and healthy competition  Will the sharing economy bring down wages in some sectors or bring gentrification?
  89. 89. Challenges to Overcome (Continued)  EU Competition legislation inhibits certain collaboration between companies (within product chains can be seen as a cartel)  Guidelines needed for public procurers in support of sharing economy enterprises  Unintended macroeconomic effects: surging prices in real estates, taxes, over-regulation  Lack of standardized reputation systems  Concerns over privacy and public safety for vulnerable consumer groups  Standards on quality control and harmonisation of online terms of use  Lock out effect (exclusivity of peer to peer communities)  Technological novelty to meet social needs  Mainstreaming “beyond GDP” principles (e.g. happiness index)
  90. 90. Challenges to Overcome (Continued)  Application of traditional industry standards in regulations  Drawing the line between peer-to-peer sharing and conventional commercial activities  EU legislation on product planned obsolescence still to be mainstreamed  Disintermediation of services (when users bypass the platforms after first interaction)  Donation system instead of actual fees, sometimes used to circumvent legislation  Raising taxed revenues from sharing economy platforms  Ensure economically disadvantaged citizens and neighbourhoods can benefit from sharing economy, not only convenience-seeking affluents with high disposable income  Sharing transactions mostly happening among people with the same social/economic status
  91. 91. “Infra horam vespertinam, inter canem et lupum” At dusk, when one can’t recognise a dog from a wolf -Latin proverb
  92. 92. The Dark Side of the Sharing Economy  Lack of rural outreach  Digital trust  Members exclusivity  Quasi monopolies  ProfitVs non-profit  Shared ownership and distributed governance  Workers rights  Minimum wages  Health and safety  Liability and consumers protection  Data privacy
  93. 93. From Collaborative Consumption to Collaborative Creation  Collaborative Consumption (reactive) => earn some money, subsidise your belongings ownership (e.g. zipcar), have more human cantered experiences (e.g. airbnb)  Collaborative Creation (proactive) => building new skills, create a business, drive an industry, more meaningful livelihoods, create innovative solutions, jobs and new forms of wealth (not just share it)
  94. 94. Source: the new economics foundation
  95. 95.  Co Financing  Co Production  Co Creation  Co Design Co Distribution  Co Marketing  Co Selling  Co Profiting Imagine the Power of Collaboration
  96. 96. Big Shift to the Sharing Economy Me <=> We Ownership <=> Access Global <=> Local Centralised <=> Distributed Competition <=> Collaboration Company <=> People Advertising <=> Community Credit <=> Reputation Money <=> Value B2B <=> P2P Hyper Consumption <=> Collaborative Consumption
  97. 97. Freelance Economy
  98. 98. “There are laws for people and there are laws for business, but we are a new category, a third category, people as businesses.” -BrianChesky,CEO Airbnb
  99. 99. A Role for Freelancers in the Sharing Economy 40% of EU’s workforce will be freelances by 2020 and some of these will be the providers powering up the sharing economy
  100. 100. Freelancers and the Sharing Economy  It is notion of the past that freelancers are only hinging to their professional sector. Nowadays, also because of the changing economic climate, freelancers are more adaptable, therefore suitable actors to thrive in the collaborative economy.  Despite the massive growth of freelancing, European policy makers still focus on “job” creation rather than “work” creation, an area where independent professionals actively contribute.  Targeted regulations that address freelancers in the collaborative economy are often missing, as well as platforms to supply a rotation of providers into different marketplaces.  A re-definition of outsourcing is needed to fit the sharing economy new developments.  While freelancers create much of the value on p2p marketplaces, they do not participate in the shared distribution of the value once captured through a public offering, acquisition, or other form of surplus distribution.
  101. 101. “A half century from now, our grandchildren are likely to look back at the era of mass employment in the market with the same sense of utter disbelief as we look upon slavery and serfdom in former times.The very idea that a human being’s worth was measured almost exclusively by his or her productive output of goods and services and material wealth will seem primitive, even barbaric, and be regarded as a terrible loss of human value to our progeny living in a highly automated world where much of life is lived on the Collaborative Commons.” -Jeremy Rifkin,The Zero Marginal Cost Society
  102. 102. “The Future is already here. It’s only not widely distributed yet.” -WilliamGibson
  103. 103. MARCO TORREGROSSA Managing Director at Euro Freelancers & European Sharing Economy Coalition @eurofreelancers