My Food Garden Is Our Food Garden

How Landshare & others are changing the way

we get our food - pg. 26

More than AirBnB

How a Handful of Startups Are Breaking Down The Doors

Between Living, Working And Playing- pg. 14

Is The Era Of Deregulated Finance Here?

More on Bitcoin & Currencies of Exchange- pg. 18

We No Longer Buy Things, We Buy The Joy Of

Co-DesignMore on

CustomMade & Prosumers as Sellers

- pg. 22

How Sharing Is Reshaping Commerce

How Ride-Sharing Is Overtaking The Way Everything TravelsMore on Uber & Transport Logistics - pg. 28

L A C U N A R A D A R Q U A R T E R L Y

3RD EDITIONSEPTEMBER 2015

c o l l a b o R a t i v e c o n s u m p t i o n

FROM THE EDITORBUY IT, LEASE IT OR BORROW IT?

This is the question facing consumers, producers and suppliers in a growing number of markets around the world.

As Collaborative Consumption gains momentum and ownership models of assets change en-masse, the pressing issue the mainstream economy faces is: How does this sharing affect financing, distribution and insurance models? For most industries, it is not a question of “if” they will be affected, but “when”.

FEATURE: SETTING THE SCENE FOR COLLABORATIVE CONSUMPTION

COLLABORATIVE CONSUMPTION//004 A Necessary Disrupt ion

IN THE DRIVING SEAT//009Drivers of Col laborat ive Consumpt ion

RETAIL//022>> Prosumers as sellers>> Loaning, not owning>> Swapping & second- hand goods

FINANCIAL ECONOMY//017>> Insurance & credit>> Saving & fundraising>> Currencies of exchange

TRANSPORTATION//028>> Personal transport>> Logistics & shipping

FOOD & DRINKS//025>> Meal sharing & dining>> Food delivery>> Space sharing

NAVIGATING LACUNA QUARTERLY

INDUSTRIES UNDER DISRUPTION: HOW SHARING IS RESHAPING COMMERCE

SOCIETY//014>> Personal life management>> Sharing & the classroom>> Working & living

THOUGHT LEADERSHIP

WHERE IN THE WORLD?//031Mapping reg iona l prof i les of Co l laborat ive Consumpt ion

COLLABORATIVE READINESS SELF-ASSESSMENT//034How ready are you to innovate?

This is why we have selected Collaborative Consumption as the focus of this edition of Lacuna Quarterly.

In this special report, we aim to:

• help define the scope of this multi-pronged trend;

• highlight the industries under the most disruption by collaborative startups;

• spotlight companies that are proving that Collaborative Consumption can be as viable as it is disruptive; and

• provide some guiding inspiration about how your business can leverage its resources to compete collaboratively.

You might be asking, what makes a trend disruptive to begin with? This is the central question that our first feature addresses, along with an approachable and comprehensive overview of the drivers and scope of Collaborative Consumption.

We then turn the spotlight on Society, Finance, Retail, Food and Drinks, and Transport – five sectors that are bubbling up with new business models and startups offering a collaborative way of value-creation.

To get an on-the-ground perspective we chatted to Ari Kestin, founder of Nimber – a community-delivery service that is challenging norms in the logistics industry.

Together, the sector updates and Nimber case study affirm many of the trends of the collaborative economy that are widely reported on – particularly regarding convergence of industries and shifting social perceptions of payments and ownership.

None of this should make you panic, though. We close off Lacuna Quarterly with a mapping of the susceptibility of collaborative consumption in different global regions, and then provide you with two self-assessment guides to help you identify your position in the collaborative economy.

Once you’re ready to take the next step and begin innovating for collaboration, we’ll be here to workshop you through it.

In the spirit of shared knowledge,Dinika Govender

Managing EditorLacuna Quarterly

INDUSTRY PERSPECTIVE//020Interview with Zopa

INDUSTRY PERSPECTIVE//30Interview with Nimber

Follow us on Twitter@ Lacuna_Innovate

Trend Driver:

MILLENNIALS

011

Prosumers as Sellers:

3D PRINTING ONLINE MARKETPLACE

022

Industry Interview:

NIMBER

030

002 SEPTEMBER2015

Editor’s Letter Content

003SEPTEMBER2015

A NECCESSARY DISRUPTION

COLLABORA T I V E C O NS U M P T I O N

Features editor, Cris Robertson, defines this growing trend and addresses the obstacles and regulatory conditions that – once overcome – lead to disruption.

Collaborative Consumption is not just another trend – it is as much about culture as it is about consumption. As a business model that prioritises the access of goods and services, rather than the ownership thereof, this emerging movement of business disruption represents a fundamental shift in both what we consume and how we consume.

No matter what you call it – the sharing economy or the peer-to-peer economy – Collaborative Consumption is, no doubt, a shift of paradigmatic proportions.

From Centralisation To Collaboration

In the collaborative economy, individuals with underutilised assets are matched with other individuals who are in search of those same assets.

As opposed to the traditional industrial economy, in which consumers were passive to the powers of centralised institutions, like banks and multinational corporations, the Collaborative Consumption business model allows for consumers to reinvent their roles in the economy – either as creators, collaborators, financiers, producers or providers.

New technologies, such as smartphones and social media platforms, allow people to effectively decentralise the source of power – from big, powerful institutions to distributed networks of individuals and communities – and unlock the hidden wealth of underutilised assets.

As many technology startups position themselves as the facilitators of the collaborative economy, building apps and services that connect the ‘haves’

with the ‘have-nots’, many social networks serve as platforms that promote this collaborative system of consumption, sustaining transactions by relying on a reputation and referrals-based system.

It’s about trust, not control.

A Welcome Interruption

And importantly so, because Collaborative Consumption addresses “broken systems of supply and demand”, says Rachel Botsman, the founder of the Collaborative Consumption Global Hub and who famously popularised the term.

The global economy is in a shambles. There are not enough natural resources to feed the hyper-consumption of modern society. And the business practices of multinational corporations do not meet the expectations of today’s emerging middle-class of Millennials and developing countries, who increasingly value community and sustainability.

Make no mistake, Collaborative Consumption is ‘the next big thing’.

“No matter what you call it – the sharing economy or the peer-to-peer economy – Collaborative Consumption is, no doubt, a shift of paradigmatic proportions.

Feature | Collaborative Consumption

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In Case Of Business, Disrupt

By 2020, the concept of ownership in the housing, automobile, home appliance and clothing sectors will be replaced by that of access, according to a report by the open foresights project, Future Agenda.

By 2025, the total revenue from the collaborative economy is projected to rise to $14 billion in the UK and $335 billion globally, according to recent analysis from multinational professional services network, PwC.

Business is booming.

“But achieving this potential will require important

regulatory and competitive challenges to be overcome,” says Robert Vaughan, PwC’s self-proclaimed champion of the sharing economy and megatrends.

As In Business, So Too In Sports

The Collaborative Consumption business model is by its nature disruptive. A business enters an industry that relies on the traditional consumer-producer relationship, turns it on its head, and creates a new space for economic activity.

However, companies in the collaborative economy not only disrupt the markets in which they operate, says David Laufer of Forum Strategies and Communications, they

also disrupt the regulatory regimes that govern.

Just like some of the biggest sports stars of our time, Collaborative Consumption is changing the game by challenging the rules of the game.

Think of how Shaquille O’Neal’s bossing figure led NBA officials to change the illegal defence rule in basketball, or how Tiger Woods’ dominance of the PGA Tour forced the Masters committee of Augusta National to introduce ‘Tiger-proofing’, or how Wayne Gretzky and the Edmonton Oilers’ proficiency at exploiting broken play on the ice rink caused the NHL to institute the ‘Gretzky Rule’.

The Only Thing Constant Is Change

The point is: things change. This is just a simple fact of life. Throughout history, the human species has always adapted to change – and necessarily too. Disruption is what Joseph Schumpeter, who coined the term ‘creative destruction’ in reference to business innovation, calls “the essential fact about capitalism”.

But disruption is never as simple as that. According to the Director of the Sustainable Economies Law Center in Berkeley, attorney Janelle Orsi, the ‘new space of economic activity’ that companies in the collaborative economy create tends to be a grey area between personal and commercial, public and

private. And government legislation is notorious for lagging behind the pace of innovation.

This is why you’ll find many companies, which operate in established industries that are ripe for disruption, look to the law to help them fight off their nemesis: change. For example, the taxi industry has argued that Uber should also be restricted to the same safety and insurance requirements imposed on regular taxi drivers. And the hotel industry has argued that Airbnb renters should also have to pay hotel tax or meet the same health and safety standards.

As Douglas Atkin, Airbnb’s Head of Community, has said, “outdated laws really threaten the growth of this nascent

new-world economy”. So what should companies do if they’re hoping to thrive in the collaborative economy?

Innovate or Die

Innovative companies don’t sit back and wait, they don’t let the status quo or the powers that be dictate the way things should be – they disrupt. And perhaps necessarily, this might mean going up against the regulatory regimes that currently govern the markets in which they operate, in the hope that they will ultimately be able to mobilise public opinion and get the law changed in their favour.

This has worked for the likes of YouTube and Airbnb – two pioneers of Collaborative Consumption.

Feature | Collaborative Consumption

007SEPTEMBER2015

In 2005, YouTube was unlike other video-sharing websites in that it waited for copyright owners to complain instead of checking for copyright infringement beforehand. Google, which was one of those other video-sharing websites, ended up buying YouTube for $1.65 billion the following year. In 2014, in response to the success of Airbnb, the British government scrapped restrictions on short-term lettings. “The internet is changing the way we work and live, and the law needs to catch up,” said Minister of Parliament, Eric Pickles.

But this strategy hasn’t really worked for the likes of Prosper Marketplace and Uber – two other pioneers of Collaborative Consumption.

In 2006, Prosper Marketplace entered the peer-to-peer lending industry and soon rose above other companies, but then succumbed to

a ‘cease and desist’ order from the US Securities and Exchange Commission. However, one of those other platforms, Lending Club, worked with the law, adhering to similar orders and restructuring itself, before eventually overtaking Prosper Marketplace. This year, Uber announced that it might have to fork out up to $50 billion if it has to reclassify its drivers as ‘employees’, not just ‘contractors’. After one of their employees filed a class-action claim against the car-hailing service and demanded to be paid for overtime pay, gas and car-repair expenses, the California Labor Commission agreed and said that Uber’s drivers are “involved in every aspect of the operation”.

Collaborate or Die

Clearly, being innovative doesn’t guarantee success in the collaborative economy. As previously

mentioned, disruption is never as simple as that. And unfortunately, there’s no simple strategy when it comes to the inevitable show-down between disruption and the law.

However, as any wise economist will tell you, the tension between innovators and regulators is a necessary part of progress – in fact, it is the path to progress, personified. And so, Collaborative Consumption business models need be just as proactive in reshaping the rules of the game as they are in reshaping the game itself.

Ironically, the concluding message is this: innovators need to work with the regulators, and vice-versa. As the saying goes, ‘keep your friends close, but your enemies closer’ – after all, this is what Collaborative Consumption is all about.

WHat aRe tHe DR i v eRs oF collaboRat ive consumption?

IN THE DRIVING SEAT

With Collaborative Consumption disrupting industries from all corners and classes of the world, you would be forgiven for thinking of this trend as a true unicorn - an unpredictable, once-in-a-lifetime occurrence.

However, a closer look at the time lines and first-movers in this field reveals four underlying drivers that have facilitated and push the rise of sharing.

Resource Depletion

Unsustainable human consumption patterns, heavy reliance on fossil fuels and accelerating environmental degradation have led to the depletion of valuable

resources, such as drinking water, biodiversity levels, fishing stocks, minerals and topsoil. Combined with climate change, the rate of resource regeneration is slowing down, the food chain is under pressure and waste is not being recycled fast enough. According to a report by the UK’S Institute for Mechanical Engineers, 50% of all food produced goes to waste and the amount of water wasted globally in growing crops that never reach the consumer is estimated at 550 billion cubic metres.This water, energy and food scarcity reflects a state not unlike Peak Oil - a point in time when oil demand outpaces supply. Back in 2005, Colin Campbell, founder

of the London-based Oil Depletion Centre estimated that about 944 billion barrels of oil had been extracted so far, some 764 billion remained extractable in known reserves, and a further 142 billion of reserves were yet to be found. The knock-on effect of the decline in oil production is rising fuel prices, and as a result, everything – from travel to heating, agriculture, plastics, trade and so on – costs more. And in a world that is already facing severe income inequality, these global market features will only exacerbate the gap between the rich and the poor.

To highlight the main global forces pushing this new wave of socio-economic structuring, our Trends Analyst, Sandiso Ngubane, walks through the drivers of this trend.

008 SEPTEMBER2015

Feature | Collaborative Consumption

009SEPTEMBER2015

Recession

The 2007/8 financial crisis triggered job losses, stunted growth in real wages and plunged the value of assets, like houses and cars. As a result governments cut spending, consumers tightened their belts and businesses felt the impact of a $22 trillion wipe-out of global wealth. The austerity measures introduced by the US and EU governments included fiscal cuts to minimise budget deficits, but this rattled currencies, sent inflation soaring and made commodities volatile. In the USA alone, the recession resulted in the loss of over 10 million jobs between 2008 and 2010. During the same period, part-time employment rose from about 25 million to 28 million. In Greece, which is now a symbol of failed austerity economics, high levels of unemployment (54.2% for people 15-24

years of age, for example) have often led to social unrest and it remains in a precarious financial position.

The mutual impacts of personal and government debt forced consumers to do more with the little they have, do things differently or use different things. As the traditional, mainstream economy shrunk, opportunities were created in a new economy that lay on the fringes. Suddenly, letting out an extra room in one’s home, providing taxi services or doing graphic design work for someone who needs it halfway across the planet became worthwhile. In other words, the sharing economy is creating unprecedented opportunity for self-employment and creating an additional income stream at a time when people need it most.

Web 2.0

Emerging from the first version of the World Wide Web, which only offered users search and readability capabilities, the development of Web 2.0 is a reference to websites that emphasise user-generated content, usability and interoperability. Rather than referring to new technical specifications of the web, Web 2.0 is more about the cumulative changes in how web pages are made and used. Web 2.0 sites allow users to interact and collaborate with each other in virtual communities. The advanced operating systems of smartphones also fall into this category of the internet’s evolution, combining the features of a cellphone with those of other mobile devices, such as a personal digital assistant, GPS navigation and media players.

Web 2.0 enabled social media and web applications that promote interaction, providing an environment

that enables the sharing and communication that is necessary for the collaborative economy. The advanced mobile operating systems has also enabled the running of third-party apps, thus allowing us to locate and provide desired goods or services in real-time. Most smartphones produced from 2012 onwards also have high-speed mobile broadband 4G LTE internet, motion sensors, and mobile payment mechanisms, further entrenching the real-time functions and fast-transacting that is characteristic of collaborative consumption. Millennials

Millennials grew up alongside the evolution of the internet and became acquainted with the concept of sharing at an early age. This can be traced back to the late 90s with the advent of peer-to-peer (P2P) file sharing, made popular by sites like Napster. Today, P2P file sharing is accepted as standard, and consumer

perceptions about ownership have changed, with most preferring only being able to access rather than own a music album, for example. Sites like eBay and PayPal emerged around the same time to perhaps become the first illustrations of goods being sold and exchanged in a P2P environment.

At the same time, Millennials have had to adjust from being children who grew up in the era of hyper-consumption, to practising restraint in their own spending habits as adults, due to the tough economic times that have further enforced the concept of sharing and finding value in idling assets. This has brought about much less of a need to acquire new assets, instead unlocking the value of what we already own.

In short, they are a new kind of consumer, whose behaviour is shaped by the tools and environmental conditions that emerged as they came of age. According to a 2013

Crowd Companies report, 73% of those who participate in the sharing economy use social networks, 55% engage in sharing services and 44% stream music. According to the report, almost half of these ‘neo-sharers’ are Millennials. Paying attention to these shifting socioeconomic drivers allows us to understand how Collaborative Consumption emerged, and how it is likely to evolve.

Forgoing an understanding of the key drivers of change puts your innovation strategies at risk of being off-target or ill-suited to the underlying needs that are driving the sharing economy.

NEXT UP: The Industries Under Collaborative Disruption

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Drivers | Collaborative Consumption

011SEPTEMBER2015

i n D u s t R i e s u n D e R D i s R u p t i o n

in tH is sect ion , We looK at tHe i nDustR i es tHat aRe unDeR maJoR D i sRupt ion bY tHe sHaR inG economY. FRom ReconF iGuReD supplY cHa ins , to RestRuctuR inG oF asset-oWneRsH ip, to tHe i ncReas inG value oF tRust as a cuRRencY, collaboRat ive consumpt ion i s pRov inG tHat value

can be cReateD i n manY neW anD netWoRKeD WaYs .

At a glance, The Influence Heat Map (overleaf) illustrates which trends are playing out, and influencing collaborative consumption in each industry. It starts with the core trends that influence all industries,

and spreads outward to the trends that have a lesser effect limited to particular industries.

We then provide a snapshot of the major themes of disruption in each industry, and the new businesses that are already making waves.

societY, p.14

FooD & DRinK, p.25

Retail, p.22

tRanspoRt, p.28

Finance economY, p.17

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Industries Under Disruption | Key Trends

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soc i e t YUPDATE

H o W i s s o c i e t Y b e i n G s H a p e D b Y c o l l a b o R a t i v e c o n s u m p t i o n ?

WE IDENTIFIED THREE THEMES OF SHARING SOCIETIES, AND THE POSSIBLE FUTURES THEY HINT AT.

SHARING & THE CLASSROOM

I n a s h a r i n g e co n o m y, t h e ro u te to e d u c at i o n a n d p rofe s s i o n a l d e ve l o p m e n t i s n e i t h e r l i n e a r n o r ce n t r a l i s e d . I t i s g l o b a l l y- n e t wo r ke d a n d ro l e -d r i ve n , n ot t i t l e d r i ve n .

Th e s e a re s o m e of t h e co m pa n i e s d i s r u pt i n g t r a d i t i o n a l m o d e l s of e d u c at i o n :

Skillshare launched a subscription-based learning service that enables students to learn from industry practitioners and seasoned experts instead of university academics. This marks a move to a more viable revenue model for the collaborative-learning platform.

Coursera – one of the first providers of Massive Online Open Courses (MOOCs) - is growing its offering and revenue stream through private-sector partnerships, on-demand content and the introduction of university-verified Specialisations.

Career-networking platform, Beyond, and online learning platform, Udemy, have partnered to help job-seekers develop their skills and polish their CVs at a fraction of the cost of traditional recruitment services.

WORKING & LIVING

As urbanisation, living costs and global work travel increase, the concept of long-term home and office ownership is being dismantled by those who believe that the costs of property ownership should be based on usage rather than title.

These are some of the companies challenging the concept of property ownership:

Krash is an example of a mix of co-working and co-living, offering entrepreneurs short-term co-working and co-living opportunities in refurbished houses across America.

Unlike AirBnB – that gives property owners a platform to turn their homes into temporary income-earning hotels – Couchsurfing is a social network that allows people to lend accommodation to visitors at no charge. The exchange that Couchsurfing rests on is cultural exchange and social connection.

WeWork, valued at $433,9m, allows individual workers to rent working space alongside startups and teams within larger companies. Since its recent valuation, WeWork stands as an example to cities and large organisations of the demand for temporary co-working premises.

AirTasker is a completely self-regulated, commission-based platform for people to outsource their errands.

TaskRabbit launches a Broadcast feature allowing people to find immediate help for odd-jobs and personal errands.

DogVacay allows you to find a nice home for your pets when you’re away, providing an alternative to kennels.

PERSONAL LIFEMANAGEMENT

A s i n d i v i d u a l s f i n d l e s s a n d l e s s t i m e to f i t i n p e r s o n a l a n d p rofe s s i o n a l co m m i t m e n t s –l e a d i n g b u s y s c h e d u l e s to co m b at t h e g row i n g fe a r of m i s s i n g o u t – a m a r ke t fo r s h a r i n g l i fe’s u n p l e a s a n t , o r l e s s i m p o r t a n t , t a s k s i s g row i n g to o. Fo r i n s t a n ce : d o n’t w a n t to w a i t i n l i n e ?

Th e re’s a n a p p t h a t l e t’s yo u h i re s o m e o n e to t h at fo r yo u . D o n’t w a n t to m ove i n to yo u r n e w h o m e o r of f i ce ? H i re s o m e o n e w i t h s p a re t i m e to d o yo u r pa c k i n g , m ov i n g a n d u n pa c k i n g fo r yo u .

I n t h e co l l a b o r a t i ve e co n o m y, t h e v a l u e of co n ve n i e n ce i s i n c re a s i n g w i t h t h e n u m b e r of n i c h e p l at fo r m s co n n e c t i n g i n d i v i d u a l s w i t h s p a re t i m e a n d s pa r s e c a s h – l i ke s tu d e n t s a n d re t i ree s – w i t h t h o s e w h o h a ve l i tt l e t i m e a n d t h e w i l l i n g n e s s to p a y fo r o u t s o u rc i n g . H e re a re s o m e of t h o s e co m pa n i e s :

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>> D e c l i n e o F t R u s t>> D e m o G R a p H i c c H a n G e>> m i l l e n n i a l s>> s o c i a l D i v i D e>> G l o b a l a c c e s s t o i n t e R n e t>> p o s t p o n e D l i F e s t a G e s>> b e m Y o W n b o s s>> W a R F o R t a l e n t

These core examples trigger some important questions about alternative, cheaper and potentially more useful forms of education. Some questions that arise from this are: • How does the value of a qualification change when millions of people around the world can obtain it?

• How does an employer verify and rank candidate employees based on their online qualifications?

• How much of taxpayers’ money could be reallocated if institutions migrated more of their courses to online and distance learning?

F inanc ialeconomYUPDATE

INSURANCE & CREDIT

P a y- Pe r- U s a g e a n d R i s k-S h a r i n g a re te r m s u n d e r l i n i n g to d a y’s co l l a b o r at i ve i n s u r a n ce p ro d u c t s – a n d i t m i g h t j u s t m a ke t r a d i t i o n a l ow n e r s h i p - b a s e d p r i c i n g a n d i n d i v i d u a l r i s k a s s e s s m e n t s o b s o l e te .

W h at d o e s a “re g u l a r” i n s u r a n ce co m pa n y d o i n re s p o n s e ? F i r s t - k n ow t h e co m p e t i to r s , a n d t h e g a p s t h e y a re f i l l i n g .

H e re a re a fe w co m pa n i e s t h at h i g h l i g h t t h e c h a n g i n g s h a p e of i n s u r a n ce .

W H a t i s t H e F u t u R e o F G l o b a l F i n a n c eu n D e R c o l l a b o R a t i v e c o n s u m p t i o n ?

WE LOOKED AT THREE MAJOR AREAS OF FINANCIAL SERVICES THAT ARE UNDER DISRUPTION BY SHARING ECONOMY SERVICES.

If homes are being bought or built not just to be lived in by the owner or tenant, regulations and taxes that go with property ownership will need to come under serious scrutiny, quickly. Considerations for co-working and co-living include:

• Home insurance: do shared houses pay per tenant per stay?

• Office space: how much can companies save by distributing their teams across co-working spaces?

• Travel and tourism: Do hosts of AirBnB, Couchsurfing and similar home-shares need to apply for hospitality licenses?

These companies underscore the fact that consumers are not just looking for more specialized, convenient and cheaper service-providers – but that they are looking to each other to provide all those things.

• What do traditional service providers, such as laundromats and grocery retailers do in this case?

• How can big business leverage these startups to improve their employees’ productivity?

• Could the sharing economy help busy people spend more time with loved ones?

These are just some of the opportunities opening up through collaborative working, living and task-sharing.

PERSONAL LIFE MANAGEMENT, pg. 14

SHARING THECLASSROOM, pg. 15

WORKING & LIVING, pg. 15

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Uber and Lyft are now legally required to provide secondary insurance that covers drivers from the moment their ride-sharing apps are switched on.

Freelancers Insurance Company is a social-purpose business wholly owned by the union providing independent workers with portable health insurance.

Peers Marketplace’s Homesharing Liability Insurance works with existing home insurance policies, so consumers don’t need to make any changes to their existing home insurance. Homsharing Liability allows consumers to choose the months they need coverage, so that they’re not over-insured.

Lending Club connects credit-worthy borrowers (individuals and businesses) with multiple investors to provide access at cheaper rates than banks.

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SAVING &FUNDRAISING

G ro u p - s a v i n g s a n d co m m u n i t y i n ve s t m e n t s h a ve l o n g b ee n a fe a t u re o f co l l e c t i ve s o c i e t i e s i n Afr i c a n , A s i a n a n d M i d d l e E a s te r n c u l t u re s .

W i t h t h e p o we r o f c l o u d co m p u t i n g , t h e d i g i t i s at i o n of f i n a n ce , a n d s o c i a l n e t wo r k i n g , a cce s s i n g c a p i t a l t h at o n ce h a p p e n e d i n a l o c a l i s e d p hys i c a l e n v i ro n m e n t ( l i ke a v i l l a g e) c a n n ow h a p p e n i n d i g i t a l e n v i ro n m e n t s wo r l d w i d e , s e r v i n g co m m u n i t i e s fo r m e d a ro u n d co m m o n i n te re s t s a n d d i f f i c u l t y a cce s s i n g c a p i t a l .

CURRENCIESOF EXCHANGE

• H ow d o yo u c h a rg e fo r t r u s t i n a co l l a b o r at i ve e co n o m y ?• H ow d o yo u re g u l ate a c u r re n c y t h at h a s a n a n o n y m o u s ow n e r a n d n o p hys i c a l m o n e t a r y b a c k i n g ? • W h at i f b i g b r a n d s c u t o u t b a n k s a s i n te r m e d i a r i e s a n d l e t c u s to m e r s t r a n s a c t d i re c t l y w i t h t h e m ?• H ow m u c h co u l d b a n k s s a ve b y c u tt i n g o u t p l a s t i c c a rd s a l to g e t h e r – i n f a vo u r of m o b i l e m o n e y ?

INSURANCE & CREDIT, pg. 17

These companies trigger some important questions for the insurance and credit industry:

• If more people choose contract work, how do they qualify for traditional employment benefits like insurance and savings? • How do sharing companies insure their contract workers and limit their liabilities?• What if consumers turned to their friends and family for financial leverage and cover?• How can the insurance industry leverage its knowledge of its customer to become an active contributor to the sharing economy?

SAVING & FUNDRAISING, pg. 18

Since the Financial Crisis of 2008, big finance has suffered a blow to its reputation, resulting in the growth of peer-to-peer financial products and services that remove consumers’ interactions with banks. The question for banks then is, how do they get back in consumers’ good books?

>> D e c l i n e o F t R u s t>> b a c K t o b a s i c s>> a u t H e n t i c i t Y>> l o c a l i s e D c u R R e n c i e s>> c R Y p t o - c u R R e n c i e s>> i n s t a n t G R a t i F i c a t i o n>> p 2 p p a Y m e n t s>> F - F a c t o R>> c R o W D s o u R c e D c o m m u n i t i e s

SO WHAT ARE COMPANIES IN THE SHARED FINANCIAL SERVICES SECTOR DOING THAT TRADITIONAL FINANCIAL SERVICES ARE NOT?

They are adapting quickly to a world where mobility, not material possession, is valued. This creates new risks, new arbitrage opportunities and therefore gaps in the insurance and payments markets.

Traditional financial services can leverage their scale to support new business models and develop products for collaborative consumers’ new financial mindset.

Some key questions for banks and insurers to consider are:

• How would you cover shorter-term contract workers, like Uber drivers, who have no single or continuous source of income?• Can banks help sharing economy start-ups provide insurance cover for their clients as well as members?• How does risk-profiling change with a pay-per-usage lending model?• How do banks mitigate fraud and black markets with the rise of peer-to-peer currencies?

Th e s e a re s o m e of t h e s t a r tu p s p rov i d i n g p l at fo r m s fo r fr i e n d s , f a m i l y a n d f a n s to i n ve s t i n t h e t h i n g s t h e y c a re m o s t a b o u t :

WHat tRenDs aRe inFluencinG collaboRative

Financial seRvices?

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TSSmartyPig is a social savings

platform that allows groups to save for specific things together.

X(periment) Fund is an initiative of Harvard University that connects alumni to early-stage businesses started by Harvard students to provide seed-funding.

RainFin is a South African P2P credit platform inspired by local customs of community saving schemes, called stokvels.

Kickstarter, Indiegogo and Thundafund are all examples of crowd-funding platforms that are providing more accessible funding and exposure to small businesses, NGOs and creative projects.

The Boston Bean is a local currency developed for use within Boston, USA. Users of the localized currency are only able to purchase locally made products and services – thereby helping to grow the local economy.

Echo (Economy of Hours) is a time-banking network in Britain, allowing consumers to exchange the skills they have for those they need, building a stronger sense of community in the process.

Bitcoin, the unregulated, digitally encrypted currency, is now being adopted by celebrity ambassadors like Mike Tyson – whose new Bitcoin ATM promises to change the way we get change.

MPESA is perhaps the most successful P2P mobile-money transfer system that lets people send money to each other with a simple text message.

018 SEPTEMBER2015

Industries Under Disruption | Financial Economy

What led you to start Zopa at the time that you did?

Zopa was founded in 2005, when online platforms were really beginning to take off. At that time, it was interesting to watch the rise of platforms like eBay and how people were behaving around its online marketplace.

There were people who were looking to invest but weren’t very wealthy had very few options of what they could do with their money - and those people looking to borrow were getting poor customer service.

We saw a big opportunity in creating an offering that, on the borrower-side, was more efficient and had better customer service than was offered elsewhere. On the lender-side, the opportunity was to create a new asset class that offered better returns in exchange for slightly more risk and tapped into the social return that

people seemed to enjoy from platforms like eBay.

What was critical to the successful launch and running of Zopa?

It was critical to have the right team in place across all business functions, from web development to credit risk. Securing funding was also very important for us to start the business so we could start lending.

What barriers and challenges did you encounter starting your business? And what do you face now?

A key issue was establishing consumer trust to the extent that they would be happy to put their money into Zopa. Not only were we a new company, but P2P was a new concept. It was different from existing models, and at the time we had no track record or regulation. We also had

to work hard to differentiate ourselves within the market. Back in 2005, people were getting higher returns, so our value proposition of offering an average 5% return on investment wasn’t as distinctive as it is in today’s low interest rate environment.

What is your understanding of a Collaborative Economy?

The collaborative economy provides a place for people to share assets for their mutual benefit. This allows for the redeployment of underutilised assets (in our case, lenders’ money) to more useful purposes (in our case, borrowers’ loans). In the middle of this is an online platform that serves as a marketplace to bring together the people who want to collaborate, but the collaborators are the real engines and recipients of value.

Zopa is considered a pioneer in the peer-to-peer lending industry. Their Head of PR, Mat Gazeley, talked to us about ruling the collaborative economy. Q&A by, Thomas Klaffke.

In your opinion, why do bigger companies struggle to operate in the Collaborative Economy?

Bigger companies tend to be older, with large operational costs and a set-up based on a different model to businesses in the collaborative economy. Collaborative economy companies tend to be very lean so they can pass on the value of the efficiencies to the collaborators themselves. The legacy issues of older and bigger companies mean they can’t do this to the same extent. It’s worth noting there are some big companies within the collaborative economy though – Airbnb and Uber number their employees in the 1000s.

What factors or events do you think would stand in the way of your business’s future growth?

Offering a strong value proposition is really important to us, and so anything that makes that harder would be potentially difficult.

Strict regulation would stifle innovation and potential growth, fortunately we have worked closely with the FCA to ensure that we have responsible lending practices to ensure we continue to act in the best interest of consumers. Do you see your business being applied to other industries?

Peer-to-peer has already been copied and applied in other industries. Within the financial services sector, companies are offering other P2P-funded products, like mortgages. More widely, some of the biggest names in the sharing economy - Uber and Airbnb - operate on peer-to-peer model.

From your experience, how is Collaborative Consumption changing consumers’ expectations?

People expect more transparency from businesses. A strong value proposition is important, but it isn’t

enough anymore. There’s greater demand from people to understand what is happening to their money and where the value is going. People also expect simplicity and a personal approach, which has really shaped the way banks and other financial services have presented themselves in the last decade.

How do you think traditional business models could embrace Collaborative Consumption?

Rather than view Collaborative Consumption antagonistically, traditional businesses should look for partnership opportunities and areas where the different businesses can work together. There are some areas where a collaborative business might have a better offering that can be more efficiently applied. Rather than try to compete, a partnership option might be more productive.

How important do you think Collaborative Consumption will become in the near future?

Collaborative Consumption will become even more important - reaching further into different aspects of people’s lives. In the peer-to-peer lending market, we see no reason why it shouldn’t account for 50% of the UK loans market in 20 years’ time.

020 SEPTEMBER2015

Industry Perspective | Financial Economy

021SEPTEMBER2015

R e ta i lUPDATE

W H a t n e W F o R m s o F R e t a i l e m e R G e i n a c o l l a b o R a t i v e e c o n o m Y ?

WE IDENTIFIED THREE ALTERNATIVE RETAIL CHANNELS, AND THE COMPANIES LEADING THEM.

PROSUMERS AS SELLERSA l o n g w i t h t h e b u i l d i n g o f s h a r i n g a n d t r u s t i n co l l a b o r at i ve e co n o m i e s , i s t h e g l o b a l r i s e of co n s u m e r s m a k i n g , b u i l d i n g a n d c r a f t i n g t h e i r ow n p ro d u c t s to s at i s f y t h e i r ow n n ee d s i n a m o re a u t h e n t i c m a n n e r. Th i s m ove m e n t of co n s u m e r s m a k i n g p ro d u c t s fo r t h e m s e l ve s t r i g g e r s s o m e i m p o r t a n t q u e s t i o n s :

• C a n t h e s h a r i n g e co n o m y re d u ce ove r h e a d s fo r s m a l l re t a i l e r s ?• H ow d o c r a f t m a k e r s s c a l e u p t h e i r c u s to m e r e n g a g e m e n t ?• C a n e l e m e n t s o f p ro d u c t i o n b e co - ow n e d i n a n e t wo r k of re t a i l e r s ?

Th e s e a re s o m e co m p a n i e s a n s we r i n g t h e s e q u e s t i o n s w i t h n e w b u s i n e s s m o d e l s :

SWAPPING & SECOND-

HAND GOODS

Th e s e co n d - h a n d m a r ke t i s ce r t a i n l y n o n e w p h e n o m e n o n , b u t w i t h t h e r i s e of e - co m m e rce a n d s o c i a l n e t wo r k i n g , t h e s e co n d - h a n d m a r ke t h a s b ee n d i g i t i s e d o n a g l o b a l s c a l e – p rov i d i n g m o re co n s u m e r s w i t h s i m i l a r s h o p p i n g exp e r i e n ce s to a t r a d i t i o n a l e - co m m e rce s h o p.

H e re a re t h e s t a r tu p s p o l i s h i n g u p t h e s e co n d - h a n d a n d s w a p p i n g s e c to r :

LOANING,NOT OWNING

O n e of t h e c h a r a c te r i s t i c te n a n t s of co l l a b o r at i ve co n s u m pt i o n i s t h e m ove a w a y fro m d i re c t ow n e r s h i p of a s s e t s . Th e s a y i n g , “o n e m a n’s j u n k i s a n ot h e r m a n’s t re a s u re” a p p l i e s d i re c t l y to co l l a b o r at i ve re t a i l , a n d t h e s e s t a r tu p s a re p rov i n g t h at o n e m a n’s i d l e c a pa c i t y i s a n ot h e r m a n’s h i g h l y u s e fu l i te m .

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BorrowMyDoggy is an online community where dog-lovers, who cannot commit to owning a dog, can take care of dogs for varying time periods.

NeighborGoods is a location-based platform making it easier to borrow, rent or buy items from people in your local community.

Rent the Runway is a high-end fashion-rental service trhat is creating a new model of access to luxury experiences.

MoveLoot is an e-commerce platform that connects buyers and sellers of used furniture, whilst MoveLoot acts as the logistics provider.

YouVerify is a free online service that helps buyers of second-hand goods identify fake brands before they make a purchase.

Yerdle is a second-hand e-commerce and delivery platform that lets people sell their unwanted items and shop for things they need.

Shapeways is a New York-based 3D printing online marketplace where users design and upload 3D printable files, and get the files printed for themselves or sell their printed items via Shapeways.

CustomMade is an online marketplace that connects consumers who want high-quality custom products with the makers themselves.

Etsy is the world’s largest peer-to-peer e-commerce website focused on handmade or vintage products, where 30% of its sellers earn their sole income selling their creative hobbies.

Storefront makes it easy for emerging businesses and makers to find and rent short-term retail space to grow their brand engagement.

022 SEPTEMBER2015

Industries Under Disruption | Retail

023SEPTEMBER2015

>> v a l u e F o R m o n e Y>> b a c K t o b a s i c s>> c R o W D s o u R c e D c o m m u n i t i e s>> i n s t a n t G R a t i F i c a t i o n>> b e m Y o W n b o s s>> l o c a l i s e D c u R R e n c i e s

FooD & DR inKsUPDATE

MEAL SHARING& DINING

W H a t D o e s c o l l a b o R a t i v e c o n s u m p t i o n o F F o o D & D R i n K l o o K l i K e ?

WE EXPLORED THREE AREAS IN THE FOOD SYSTEM RIPE FOR DISRUPTION.

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As the experience of borrowing and lending goods with community members becomes more valuable to consumers, retailers are pressured to find ways to create their own communities, or extend their value chains to include sharing.

In a current economic climate of prudence, second hand markets have two advantages: they offer value for money as well as a platform for people to get rid of unwanted goods, in order to get back to basics. This leaves the traditional retailer with some questions:

• How could retailers introduce a swapping or second-hand model into their offerings without compromising on their brands’ positioning?

WHAT DOES THIS MEAN FOR PRODUCERS OF FINISHED GOODS?

The consumer who produces, or “prosumer”, needs raw materials and equipment, not finished products. But they still seek high-quality finished products.

Retailers therefore need to consider their role in satisfying the needs of their craftier consumers.

Personalisation and mass customi-sation are important retail offerings for this market.

PROSUMERSAS SELLERS, pg. 22

LOANING, NOT OWNING

SWAPPING & SECOND-HAND GOODS

Questions for big retailers to consider are:

• What happens to guarantee and warrantee policies when goods are bought for sharing? • Could retail experiences be rented?• Who pays for logistics in a temporary ownership model of retail?

• Could brands manage, or track, the resale of their products to gain further insights into their secondary markets?• Could loyalty or store accounts be reconfigured for groups?

Whether they are renting, making or bartering products, the collaborative consumer is certainly not buying finished products at their final price, although they are still seeking high quality of need satisfaction.

Buying is now using (at a price). Where then, does the retailer fit into this new model of consumption?

The collaborative economy is pushing retail to become more circular in its supply chain. Whilst tricky in the beginning for a traditional B2C or B2B retailer, a sharing retail model is likely to build a more sustainable business.

WHat tRenDs aR e p l aY i n G out

i n c o l l aboRat i v eR eta i l ?

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Fo o d S e c u r i t y i s o n e of t h e wo r l d ’s m o s t p re s s i n g co n ce r n s . Fro m d e ve l o p i n g n at i o n s w h e re fo o d p ro d u c t i o n i s u n d e r t h re at , to h i g h l y- d e ve l o p e d , u r b a n i s i n g c i t i e s w h e re fo o d co s t s a re h i g h - i t i s b e co m i n g m o re d i f f i c u l t to e at we l l . Ad d to t h i s t h e i n f l u e n ce of t i m e - p re s s e d m o d e r n l i fe s t y l e s , a n d co n s u m e r s’ re l at i o n s h i p s w i t h fo o d a re b e co m i n g m o re a l i e n ate d .

Th e re s p o n s e i s a g row t h of co l l a b o r at i ve co o k i n g a n d e at i n g – s t a r tu p s l i ke t h e o n e s b e l ow w h o a re re v i v i n g v a l u e s of f a m i l y-d i n i n g a n d re s p o n s i b l e e at i n g .

Leftover Swap is a mobile app that allows consumers to buy or sell unwanted, but still wholesome, food in their neighbourhoods.

Mamabake is a community of mothers who get together to bake in ordert o share the cost of baking for children’s events.

Feastly is an online marketplace for meal-sharing where members can find or cook for groups in member-cities, offering unique alternatives to restaurants.

Industries Under Disruption | Retail

025SEPTEMBER2015

FOODDELIVERY

W i t h b u s y m o d e r n l i fe s t y l e s , g ro ce r y s h o p p i n g i s p rov i n g to b e to o t i m e co n s u m i n g - n o t to m e n t i o n ove r w h e l m i n g fo r co n s u m e r s n e w to co o k i n g . I n re s p o n s e , t h e m a r ke t fo r fo o d d e l i ve r y i s b o o m i n g a ro u n d t h e wo r l d – f ro m f re s h p ro d u ce a n d g ro ce r i e s to f a s t a n d p re m i u m re s t a u r a n t fo o d . Th e u n i q u e s e l l i n g p ro p o s i t i o n s of t h e s e s t a r tu p s a re i n t h e i r d e l i ve r y-t i m e s a n d n i c h e fo c u s a re a s .

SPACESHARING

Fo r s t a r tu p fo o d p ro d u ce r s a n d re s t a u r a n t s , o n e of t h e b i g g e s t b a r r i e r s to e n t r y i s t h e h i g h co s t of e q u i p m e n t , l a n d a n d p ro p e r t y to s e t u p. B u t i n p u r s u i t of t h e fo o d t h e y w a n t to s ee p ro d u ce d , fo o d e n t re p re n e u r s a re p o o l i n g t h e i r re s o u rce s to re d u ce t h e i r ove r h e a d s a n d g e t t h e i r p ro d u c t s to m a r ke t w i t h l e s s r i s k .

Th e s e a re s o m e of t h e b u s i n e s s e s co n n e c t i n g fo o d m a ke r s w i t h re s o u rce ow n e r s :

>> i n s t a n t G R a t i F i c a t i o n>> H e a l t H Y H a b i t s>> s p a c e s c a R c i t Y>> F a R m - t o - t a b l e>> c R a F t c u l t u R e>> F l a v o u R e x p e R i e n c e>> s i n G l e l i v i n G>> o n - t H e - G o c o n s u m e R>> l o c a l i s a t i o n>> n i c H e c o n s u m p t i o n

MEAL SHARING & DINING, pg. 25

These companies are highlighting important gaps that food and drink producers, as well as restaurants, have failed to cater to:

• Communities are formed, and made stronger, around food.• Consumers do not want to waste perfectly edible food.• At-home meal-preparation is not a deterrent when it can be done together or with an expert’s help.

FOOD DELIVERY, pg. 26

The biggest questions surrounding the scalability and viability of food delivery are related to food storage, and health regulations – both of

which have yet to be challenged by consumers, regulators or lobbyists.

Until then, consumers will no doubt enjoy the convenience of having exactly what they want when they want it.

SPACE SHARING, pg. 26

In what could be compared to the Airbnb of kitchens or farms, the potential disruption of the food industry by a large volume of smaller food producers becomes more plausible.

Here are scenarios for food and hospitality brands to consider:

• What if your commercial kitchen could earn a side income through after-hours rentals?

• How can underused land be used to promote subsistence farming?• Could kitchen equipment and appliances be rented directly from manufacturers? • What if restaurant license policies had a grace period for the first few months of operations?

Within the sharing economy, the way consumers cook, eat and access our food is changing to more networked and convenient model.

These themes highlight trends of authenticity, instant gratification, value-for-money, and craft culture (among others) that are strongly influencing consumer tastes.

One thing will not be disrupted, however, and that is the consumer desire to eat, and to eat well.

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WHat tRenDs aRe inFluencinG consumeRs’

DesiRe to consumecollaboRativelY?

Fresh City Farms is on a mission to bring farmers and consumers together in urban areas through an online fresh-produce marketplace.

Kitchen Surfing is a website that allows people to “rent a professional chef“ for a meal.

Instacart is an internet-based grocery delivery service that promises to deliver fresh foods in under one hour.

Kitchen Library is an online member-based marketplace that lets users borrow kitchen equipment, as and when they need them.

Union Kitchen is a food incubator that lets startups’ food entrepreneurs share production space and business development resources.

Landshare is a global network that connects professional and amateur farmers with people who have land to share.

026 SEPTEMBER2015

Industries Under Disruption | Food & Drink

tRanspoRtUPDATE

PERSONALTRANSPORT

A s c i t i e s b e co m e d e n s e r a n d t h e co s t s of ve h i c l e ow n e r s h i p r i s e , ow n i n g a c a r i s b e co m i n g l e s s of a s t atu s s y m b o l a n d m o re of a b u rd e n – pa r t i c u l a r l y a m o n g M i l l e n n i a l s .

Th i s s h i f t i n att i tu d e tow a rd s c a r- ow n e r s h i p a n d p e r s o n a l m o b i l i t y i s re f l e c te d m o s t a cc u r ate l y b y t h e s e n i c h e m o b i l i t y s t a r tu p s :

H o W i s m o b i l i t Y a n D l o G i s t i c s c H a n G i n G u n D e R c o l l a b o R a t i v e t R a n s p o R t s Y s t e m s ?

WE LOOK AT TWO MAIN AREAS OF TRANSPORTATION – PERSONAL MOBILITY AND LOGISTICS.

LOGISTICS & SHIPPING

Th e w a y go o d s m ove a ro u n d t h e wo r l d i s c h a n g i n g U b e r-f a s t . S t a r tu p s l i ke U b e r a re , i n f a c t , expa n d i n g t h e i r pa s s e n g e r-t r a n s p o r t m o d e l to a l l fo r m s of go o d s a n d s e r v i ce s d e l i ve r y, w h i l s t s m a l l e r s t a r tu p s a re f i l l i n g t h e g a p s i n t h e t r a ve l i n d u s t r y.

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PERSONAL TRANSPORT, pg. 28

These mobility-sharing services raise a few questions for transport companies, such as:

• How does travel insurance work for long-distance ride-sharing and ride-lending?• What if car makers applied their scale, resources and skills to make better bicycles, or public transport? • Could unused hours on public transport be traded in a secondary market? • How much could be saved on company premises if ride-sharing was used for all employees?

>> c R o W D s o u R c e D c o m m u n i t i e s>> v a l u e F o R m o n e Y>> i n s t a n t G R a t i F i c a t i o n>> o n - t H e - G o c o n s u m p t i o n>> G R e e n s u p p l Y c H a i n>> s m a R t c i t i e s>> c o n F l u e n c e o F e c o n o m i e s

WHat tRenDs aRe DRivinG collaboRative consumption

in tRanspoRtation?LOGISTICS & SHIPPING, pg. 29

These startups are just a few that are jumping to find idle capacity in the logistics space. Big logistics players are now left with questions along the lines of beat them or join them*.

• How might logistics companies support startup businesses with limited delivery resources?• How do courier companies compete with competitors who are gaining consumer loyalty first, such as Uber and Amazon?• How could retailers benefit from using such services for their own delivery networks?

*Hint: In light of the growing importance of the collaborative economy, the answer is likely along the lines of “ join them.”

For transport sharing services to truly reach a critical mass will also require the combined innovation of traffic infrastructure, updates to transport laws (as Uber’s string of global lawsuits is proving) and vehicle financing and insurance.

However, as the International Transport Forum stated, the rapid emergence of these new logistics and transport services signals a “fundamental change in the mobility ecosystem.”

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Spinlister is a global network that lets people rent out their bicycles and other non-motorised transport in their cities. It also charges a service fee that contributes towards insurance for bicycle owners.

BlaBlaCar is a carpooling community that connects people to travel long distances with drivers who have extra seats in their vehicles.

Zipcar is the world’s largest fleet-based short-term car-rental system, with business and individual membership options.

Postmates is an urban logistics & on-demand delivery platform connecting customers with local couriers, who purchase and deliver goods from any restaurant or store in a city.

Nimber connects individuals who need something delivered with those traveling in the same direction, undercutting courier services.

Uber, a name that needs no introduction, is an international transportation network company that provides on-demand rides and deliveries, varying from city to city.

Shyp is an on-demand service that will pick up and deliver for individuals and businesses using the cheapest, quickest method.

028 SEPTEMBER2015

Industries Under Disruption | Transportations

What is Nimber and how did it start?

Nimber is a matching platform for deliveries between individuals that have to send something with people going into this direction. It started when we noticed all the spare capacity available. Just as Airbnb identified spare space, we saw spare capacity. So, we looked at how a similar model could be implemented in the courier industry.

Is the collaborative economy just a small trend or a paradigm shift?

To be honest, nobody in the sharing economy is doing anything new – it’s just about using the technology available to create better, more efficient services. But this is not just a phase, no. The economy needs these kind of models – they are more efficient, they make economic sense and they create better services, so they are here to stay.

Do you think Nimber is disrupting the traditional delivery services industry?

Well, I think there is a difference between the industry and Nimber, in that a vast majority of the things that people send with Nimber are things that people cannot send with traditional delivery services. What we are seeing is just a difference in business models. And business models are constantly changing anyway. In some cases, the incumbents may lose market share and then adjust in time, but in other cases, they don’t adjust and end up losing out. It depends.

How should traditional businesses prepare for how this trend will play out?

Traditional companies should prepare for a decentralisation of power. History tells us that when companies reach a specific size, they have problems changing. So, how can traditional companies change? By studying people, looking at what consumers are doing. One has to look at what the people want, and from that, they should then look at how they can create a great service that also makes economic sense. For example, traditional companies have long relied on a massive marketing budget to keep a grip on the market, but people don’t respond to that anymore. Remember when you wanted to book a flight and you would book directly through an airline? Now you go to an open platform, like cheapflights.com. So, traditional companies need to ask what the consumer wants and not just rely on marketing.

The experience of startups offers an important piece of insight into the nature of a new market, or new opportunity, such as Collaborative Consumption.

Thomas Klaffke spoke to ARI KESTIN, the CEO of Nimber, an emerging player in the transportation and logistics industry.

The entrepreneur has strong opinions about trust networks, new business models, and Western Europe’s relationship with innovation.

Scenarios are stories that consider “what if?” questions. In the art and science of curating scenarios, we blend known ‘trend drivers’ with ‘unknown certainties’ or ‘game-changers’ that influence the manifestation, relevance and impact of a trend on an industry, market or region.

Scenarios enable us to arrive at a set of plausible, consistent models for exploring the future of a trend within a given context. In the case of Collaborative Consumption, our research indicates six key unknown certainties which are changing the way this trend plays out across the regions of the world.

1. The digital capability of a country – determining the level of mobile access to shared resources, where some markets are rapidly absorbing mobile technologies and others are stalling and falling behind.

2. The unemployment level – determining the need to share resources out of necessity.

3. The cultural openness to trust – determining the extent to which consumers are predisposed to sharing space, personal possessions and their private lives.

4. The population density of Millennials – determining the rate at which collaborative values are growing in a society.

5. Consumers’ hierarchy of needs – determining the level of importance of environmental sustainability to collaborators.

6. Political economy – determining the extent of democratic freedom consumers enjoy in their choice-making and extent of policy regulations, including the promotion of vehicles, such as co-operatives to enable shared ownership and access.

Across the globe, people are getting richer or poorer, their stage of evolution from Web 1.0 to Web 3.0 is happening at a different pace, their propensity to trust differs, as does intrinsic motivators in various forms of economic systems.

In the infographic to follow, we illustrate how these game-changers influence the collaborative economy trend at a regional level.

For a detailed scenario map of how this trend could play out in your specific industry or a particular market, Lacuna Innovation has a customised scenario product available to facilitate this process.

WHERE IN THE WORLD?MAPPING REGIONAL PROFILES OF COLLABORATIVE CONSUMPTION

By Merle O’Brien

To set up a demo or workshop, email: Isaac.Matsa@the-Lacuna.com for a quotation.

i n t e R v i e W s i n t H e F i e l DARI KESTIN - A SHARING ECONOMY ENTREPRENEUR

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Industry Perspective | Transportations

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D i G i t a l c a p a b i l i t Y

u n e m p l o Y m e n t

o p e n n e s s t o t R u s t

m i l l e n n i a l s

H i e R a R c H Y o F n e e D s

p o l i t i c a l e c o n o m YS

ou

th-

East A

sia &

Pacific

Mid

dle-

East A

sia

Western

Eu

rop

e

Eastern

Eu

rop

e

No

rth A

merica

So

uth

Am

erica

(% Households with Internet Access - Statista, 2015)

(% of Population - Statista, 2015)

(Level of Social Trust - Pew Global Research Centre)

(% of Population - Euromonitor, 2012 Forecast)

(Prioritisation of Consumers’ Social & Environmental Needs - 2015 Social Progress Index)

(% of region that has economic, civic & political rights - Freemdom House, Freedom Index, 2014)

Africa

11% 40% 40% 80% 80% 60% 60%

10% 4.3% 8% 7.5% 7.8% 7.5% 6.8%

35% 58% 38% 60% 45% 65% 40%

70% 50% 67% 35% 38% 40% 53%

20% 40% 11% 88% 88% 68% 68%

0% - 45% 45% - 75% 0% -30% 75% - 100% 75% - 100%60% - 75% 45% - 75%

To set up a demo or workshop,email: Isaac.Matsa@the-Lacuna.com for a quotation.

032 SEPTEMBER2015

Thought Leadership

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COLL

ABO

RATIVE READINESS

A. YOUR OFFERINGB. Y

OUR ASSETS

D. P

OIN

T OF SALE

C. YOUR SUPPLY CHAIN

SELF

-ASSESSMENT

5. Where do assets lie underutilised in your business?

Stock Office Retail

Transport Tech Other

6. How can assets be optimised?

Share Co-Own Unitise/On-Demand

Open Access Other7. Can your non-core

business be pooled as a shared- service with another company?

......................................................................................................

..........................................................................................................................

8. How could you support an SMME incubator?

.................................................................................................................................

.............................................................................................................................

9. Are there underutilised suppliers in your value chain with more potential?

..................................................................................

..................................................................

10. How can your offering be available on demand?

..........................................................................

.......................................................................................

.................................................................................................

11. What value-adds might you offer to deter disintermediation?

........................................................................................

..............................................................................

...........................................................

1. What are you selling?

Product Service Experience

2. Could your core offering be reused, rented or collectively owned?

No Yes

If yes, please explain...........................................................................................................

3. What is your exposure to the following risk sectors?

High Risk - computer hardware and software, travel and transport, accommodation, books, music, stock control, fashion,

banking, insurance and finance

Medium Risk – beverages, property, recruitment, education, sport & exercise, marketing

Low Risk – food, furniture, design & personal care

4. Where could your offering be disintermediated?

................................................................................................................

...................................................................................

HOW READY ARE

YOU TO INNOVATE USING COLLABORATIVE

CONSUMPTION?

Use this self-evaluation to jumpstart the assessment of your company’s

collaborative readiness. You can apply this to individual business units or to

your global organisation.

034 SEPTEMBER2015

Score Card

035SEPTEMBER2015

E. BRAND

I. TRAN

SPO

RT

G. EMPLOYEES

H. C

ONSUMER

F. PAYMENT SYSTEM

12. What is your brand trust level?

Poor Fair Average Good High

13. What are your brand’s value drivers?

Price Quality Convenience Design

Functionality Reliability Technology Other

14. How could you move from a product to an experience brand?

............................................................................................................

.................................................................................................. 15. How could your brand be franchised?

........................................................................

16. Could you use an alternative currency system?

Yes No

If yes, please explain..........................................

.........................................................................

17. Are there any other means of exchange to trade?

Barter Trade-In Data

Give-Away Points

Other

18. How might tech be used to enable better employee collaboration?

..................................................................................................................

.....................................................................................................................................

19. How might you support collaborative living benefits?

................................................................................................................................................................

...................................................................................................................................................................

20. What special purpose vehicles might your employees access for co-ownership?

Co-operative Union Stokvel Club Other

21. Where might your employees access/enjoy bulk benefits?

Healthcare Transport Accommodation Targets

Food Learning ICT Data Insurance

Banking Loyalty Card Other

22. What other ways can goods travel to your customers?

..............................................................................................................

23. What other ways can goods travel from suppliers to you?

................................................................................................................................

24. How can we reward customers, staff and suppliers for being environmentally conscious?

........................................................................................................................

25. What regulations and policies could disrupt your business model?

...................................................................................

The answers you provided should help you assess your exposure to the sharing economy and its potential to disrupt your business. Also share the Collaborative Readiness Exploration Wheel (overleaf) with your

colleagues to explore areas of your business ready for

collaborations. Kindly contact our sales team

should you wish to consult with our innovation experts to

help explore new opportunity spaces for your company in the

Collaborative Economy.

26. What can you exchange that customers need?

.....................................................................................................................

27. How can you structure bulk savings for pooling resources?

............................................................................................................................................

..................................................................................................................................................

28. How can you personalise your service?

......................................................................................................................................................

.....................................................................................................................................................

29. How many of your clients are Millennials?

0 – 20% 20 – 35% 35 – 55% 55 – 80% 80 – 100%

30. On scale of 1 – 10, what is your customers’ propensity for sharing?

.........................................................................................

036 SEPTEMBER2015

Score Card

037SEPTEMBER2015

>> Profit Share>> Can we invest in

their ideas? (IP)>> Can we incubate?

>>

Learning

>>

Transport>>

Food

edia

>> Apps>> Social M

>> OrganisationalLearning

>> Lift Clubs>> Car Pools

>> Savings/Stokvel>> Worker Co-op

Healthcare>> Exercise Club

>> Social Club>> Bitcoin

>> Barter>> Trade-In

>> Give away x for each purchase

>> Sharing/Collab. Owning>> On-Demand

>> Access

>> Office>> Vehicles

>> Technology>> Retail

>> Offering>> Configuration

>> Experience

>> Rented>> ConsumedCollectively

>> Exchanged

>> Service>> Experience

>> Product

EMPLOYEESPAYMENTSYSTEMS

ASSETS COREBUSINESS

CONSUMERS

TRANSPORT

ENVIRONMENT& WASTE

SUPPLYCHAIN

POINTOF

SALE

BRAND

COLLABORATIVEREADINESS

EXPLORATIONWHEEL

edia >> Accommodation

How can we

personalise for them?

How can we structure

bulk discounts for

pooling purchases?

What can we

exchange

that they need?

Can

empl

oyee

sco

-ow

n?

How else can goods

get to custo

mers?How goods g

et

to us

?

How

can

they

colla

bora

te?

Whe

re c

an w

e su

ppor

t col

labo

rativ

eliv

ing?

How

can we use

technology for

comm

unity collab?

Can we use an

alternative currency?

Are there other

means of exchange?

How can we move

from product to

experience brand?

Can our brand

be franchised?What is our brand

trust audit?Can our offering be

available on demand?What valuable services do we offer to deter disintermediation?

Where are we

at risk for

disintermediation?

Can they pool

shared services?

Can we support

SMME Incubators?

Where are th

ere

resource in

efficiencies

or duplicatio

ns?

Can w

e pool-

shar

e non-c

ore?

How

can

we

optim

ise?

Whe

re a

re th

ey

unde

rutil

ised?

Wha

t is

the

axis

of a

dvan

tage

? Can it be...

What are

we selling?

How

can we turn

waste into a resource?

Can our produce

be repurposed

or upcycled?

Can we recycle

in supply?

What is our

carbon footprint?

What is theirpropensity for sharing?

How many clientsare Millennials?

CONTRIBUTORSD i n i K a G o v e n D e REditor in Chief & Contributing Writer

s i m o n s l a b b e RArt Director

i a n m c n a i RProduction Manager

e s t e l l e e R a s m u sEditorial Designer

m e R l e o ’ b R i e nThought Leadership

c R i s R o b e R t s o nSub-editor &Contributing Writer

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Images posted in our reports, articles and booklets are readily available in various websites on the internet in the public domain.

If you believe any content that appears in this document infringes on your copyright, please contact us.

s a n D i s o n G u b a n eWriter

t H o m a s K l a F F K eWriter & Researcher

c a R o l i n e K i n GCopy Editor

038 SEPTEMBER2015

Score Card Contributors

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