is sharing economy the key to the future?

Is sharing economy the key

to the future?

Mindaugas DanysDecember 2016

1st coworking space in Lithuania in 2010

1st Urban Garden in Vilnius in 2013

Estonia – e – residency programOne of the smallest country with the largest population

data by

SHARE THE ABUNDANCE: ROOMS

European Commission 2015

Collaborative EconomyHoneycomb

A Day in the Life of the CollaborativeEconomy

Growth of coworkingNumber of desks in Vilnius:2010 – 30 (Hub Vilnius)2016 – 500 (Rise Vilnius, Vilnius Tech Park, Sunrise Valley, North Town Tech Parka, Fridge, NGO BeeHive, Pakrante, UMA Coworking, Workland etc.)

Tool bank & sharing economy

Car sharing/pooling & bike sharing

It’s getting big & noticed

Trust #1 barrier to sharing

67% express trust concerns as the primary barrier to join a collaborative consumption service30% fear that their goods will be stolen or broken23% express a basic mistrust of strangers14% express “privacy concerns”

Campbell Mithun 2012

Sharing platforms use peer-review and reputation-based trust systems to create trust and alleviate the problem of “free-riders” who do not contribute.

Crowdfunding

People share everything to save or make money

P2P exchange of tangible resources (under-utilised high-value goods, i.e. car or “the power drill”) and intangible resources (excess money, skill, time, space, knowledge and information), in a global (online) or local contexts (grassroots communities).

➡ 68% of 30.000 US consumers are willing to share what they own in exchange of a fee

Nielsen 2014‣ potential value of the sharing economy sector$335 billion by 2025 (+25% each year)

PWC 2014

What people think?

PWC 2015

Motivations and Drivers

Compare & Share 2015

✓a critical mass of users

✓idling or excess capacity of unused

goods

✓belief in the common good

✓social trust

The P2P Foundation (Bauwens et al.) also identifies 2 main societal drivers:

•

• community dynamics in conducting business and the combined effect of digital reproductionthe increasingly 'socialized' production of value.

4 principles of collaborative consumption

Collaborative Consumption Systems

Botsman & Rogers 2010

Is ‘sharing’ just a fancy word for ‘rental’?

• While some of these organisations are public initiatives or small cooperatives, others develop platform business models capitalising on existing communities and enhancing their P2P matchmaking services in exchange of a transaction fixed fee or a commission.

• VCs and business angels have invested about $30 billion in tech-startups disrupting traditional businesses with sharing schemes.

Sharing Economy “unicorns”:= $60+

billion‣ Uber‣ Airbnb = $25

billion• Rentals representing the greatest share of business models

SharingBelk (2007) definition of sharing:

“voluntary lending, pooling and allocation of resources, andauthorized use of public property, but not contractual renting, leasing, or unauthorized use of property by theft or trespass”

=> the Sharing Economy is not true sharing (Belk 2014):

-presence of profit motives-absence of feelings of community-expectations of reciprocity

True sharing is driven by altruistic motives, a sense of commonality, in-direct economic benefits, fame or reputation, utilitarianism, feeling of belonging to a community.

Sharing✓ True sharing involve caring and love, it is inalienable,

interpersonal and dependent, as well as communal as it creates trust and social bonds without contracts or legal requirements (Belk, 2010).

✓ Sharing out (vs. Sharing in) “involves giving to others outside the boundaries separating self and other, and is closer to gift giving and commodity exchange” (Belk 2010 p.725).

✓ “If we conceive of a continuum commodity exchange lies at one end and sharing at the other, with gift giving somewhere in themiddle” (Belk, 2007, p.127).

commodity exchange

gift givingsharing

Other Relevant concepts: access-based consumption, mutuality or generalized reciprocal exchange, anti-consumption, pure opportunistic behavior.

What’s Yours is Mine✦ Unfulfilled promises of the Sharing Economy

openness, democratisation, equality, communitarian values, personal exchanges/interactions, trust between strangers, micro-entrepreneurship, less materialism with access over ownership, sustainability, etc.

✦ In reality:- creates new forms of commerce and new marketplaces,- not 100% safe and trustworthy- centralised control or mutual surveillance system,- money for investors but not the workers- deregulated free-market in private lives, etc.

✦ Conflicting languages:

Slee 2016

community, collective action,

libertarian/progressive politics, grassroots

activism, social change

private/corporate

financial/commercial gains

VS

Disruption?

‣

‣

The most common model is to take a commission on transactions; something businesses have been doing for centuries.Technology has done many things, but to date it hasn't been able to completely do away with the middleman.

Nesta 2016

‣• Sharing economy businesses, despite their power to disrupt

incumbents and despite being radical in their own right, make use of some very traditional business models.

Sharing economy activities are nothing new

recirculation of goods (eBay, Craigslist)increased utilisation of durable assets (Couchsurfing)exchange of services (time banking)sharing of productive assets (cooperatives, flatshares)

Platform Cooperativism

• Sharing platforms that facilitate P2P service exchange should adopt a cooperative business structure with a “multi-stakeholder model that could include providers, customers, founders, investors, geographic communities, and nature”

Gorenflo 2015

• “produser-owned platforms = users are producers”Scholz 2016

• The rationale is that most P2P platforms rely on the

supply side of the network for their revenue stream, so these users/providers should own and control the platforms.

Scholz (2014), Gansky (2014), Schneider (2014)

The Participation Scale

Heimans & Timms 2014

Heimans & Timms 2014

What else can be shared?

10 P2P Trends for 20161.Poor-to-Poor, Peer-to-Peer: self-

organized mass migration and "trans-migrants"

2.The further maturation of post- corporate entrepreneurial coalitions or eco-systems that are creating livelihoods for productive communities and their commons

3.The Collaborative Technology Alliance, digital synergy, and the blockchain

4.From Urban Commons to The City as a Common

5.The launch of independent, commons-centric civic organisations

6.The Poc 21, OSCE Days and the blockchain-based open supply chains as important steps toward an Open Source Circular Economy

7.Platform Cooperativism, Commonfare, and the new mutuals for precarious labor.

8.The Emergence of Meta-Economic Networks for ethical value streams

9.The Cosmo-Localization of WikiHouse, and other seed forms for a new wave of open platforms for sustainable living and housing

10.The initiation of a legal tradition for the Commons

Bauwens 2016

10 Sharing Economy Predictions for 2016

1.Shared autonomous vehicle2.Discourse of the commons is going

mainstream3.New growth for the worker co-op

sector: workplace democracy4.The sharing cities movement reaches

higher levels of visibility5.Funding by VCs will continue to

increase, but slower rate6.Funding will open up, franchises will

enter the market, explosive growth from the far east (i.e. China and India), and rural/surburban coworking or suburban coworking will grow

7.The Cosmo-Localization of Production: global open design communities combined with local production in microfactories

8.Growing conversation between companies, unions and non-profits about gig workers’ “flexicurity”.

9.Short-term rental regulations to balance opportunities for small- scale livelihood generation with the potential displacement of long-term and vulnerable residents

10.Growing movement for value distribution. Shareable 2016

Sharing economy champion in Lithuania

Thanks!

Mindaugas Danys

mindaugas.danys@gmail.com Mob. +37068601247 Skype: mdanys4282