the sharing economy: embracing change with caution

The Sharing Economy and

SwedenClaire Ingram

Stockholm School of Economics

What is the Sharing Economy?Rachel Botsman: “a system that activates the untapped value of all kinds of assets through models and marketplaces that enable greater efficiency and access”

Or the “peer-to-peer exchange of tangible and intangible slack (or potentially slack) resources, including information, in both global and local contexts”. (Felländer, Ingram & Teigland, 2015)

More selling than sharing in Sweden

TNS för Nordea, 31 augusti – 9 september 2015

Seco

nd-h

and

sale

s

Shar

ing

and

Exch

angi

ng

What’s driving it?• Internet access (especially mobile)• Lower barriers to entry• Ease of financial transactions• Improvements in analytics• Financial crisis• Low wages and job insecurity• Necessity• But also a desire to lead a more sustainable life

Economy, environment of note

TNS för Nordea, 31 augusti – 9 september 2015

Internet access

Statistics from Internet World Statistics, 2015

Mobile internet

Statistics from Google, 2015 & Svenskarna och Internet 2015

How does it work?• Reduces

transaction costs (incl. cost of “finding” a match)

http://sloanreview.mit.edu/article/strategic-decisions-for-multisided-platforms/

• Bargaining costs• Policing and

enforcement costs

Uber AirBnB

Global – but also local

Some examplesAsset Examples Global Swedish

TangibleTransportationPropertyFood

UberBlaBlaCarDidi KuaidiAirBnB

SkjutsgruppenSunFleetHofficeWorkaround.io

Intangible: Financial

CrowdfundingP2P lending

KickstarterIndiegogoLendingClubProsperGoFundMe

FundedByMeCrowdcubeToBorrow

Intangible: Services

ProfessionalPersonal

InnocentiveMechanical TurkUpworkTaskRabbit

eWorkVintTaskRunner

And “sharing” is big business…

http://www.web-strategist.com/blog/2015/06/04/the-collaborative-sharing-economy-has-created-17-billion-dollar-companies-and-10-unicorns/

26 bn USD today 335bn USD in 2025

COLLABORATIVE ECONOMY FRAMEWORK V0.1

LEARNING

p2p learning

open courses & moocs

PRODUCTION

co-design / co-innovation

digital peer production

distributed fabrication (makers)

FINANCE

p2p funding

p2p payments

p2p insurance

compl. currencies

GOVERNANCESWARM

participatory organizations

participatory government

blockchain / DAO

CONSUMPTION

redistribution

local food systems

product-service

on-demand services

http://mashable.com/2013/02/13/robohand/

$60,000

$150

Available for free download on

$45

Also a force for good

It could even finance itself!

 Form Benefits for funders

Donation-based Donation Intangible benefits.

Reward-based Donation or pre-purchase

Rewards in addition to intangible benefits.

Equity-based Investment

Return on investment if company does well. Rewards sometimes also offered and intangible benefits may

motivate too.

Debt-based LoanRepayment of loan with interest.

Alternatively intangible benefits if loan given interest-free.

Ingram & Teigland 2013

Crowdfunding growth 2012-2015

34bn USD (est.)

What are the projections?By 2025, global crowdfunding could reach 90 to 96 bn USD 1.8 times today’s global VC industry)

Growth potential greatest in emerging markets? 50bn USD in China by 2025?

Livengood & Ingram 2015

Policy concerns• Over-regulation• Flexible job market• Improved efficiency

• Safety concerns• Two-tier labour market• Race to the bottom• Artificial Monopoly

Labour market challenges• More efficient / sustainable use of resources BUT

not really creating many jobs• Those it does create are often insecure and poorly

paid• What is

employment?

Regulatory & Economic challenges• Lots of peer-to-peer contracts – need capacity to deal

with these• What about taxation, security, IP and privacy?

• Is it a race to the bottom?• What are the implications of ”zero marginal cost”?• Reduced consumer spending – effect on growth?• Creation of monopolies• How do we measure it?

https://www.skatteverket.se/download/18.361dc8c15312eff6fd41b7/1458026837182/Kartl%C3%A4ggning+och+analys+av+delningsekonomins+p%C3%A5verkan+p%C3%A5+skattesystemet+delrapport.pdf

What’s next?

Graphic from: http://www.i-scoop.eu/internet-of-things/

Claire IngramStockholm School of Economics claire.ingram@hhs.se @Claire_EBI slides.claireingram.se