Industry Insights

Sharing Economy: the ‘use, don’t own’ notion

Traditionally, the consumer’s behaviour has been immersed in a linear economy in which products are made, used and disposed of. Nevertheless, since 2014 a new trend has been taking place: the sharing or circular economy.

Under this new system, the consumption of products and services is moving from owning to sharing and renting. This encourages reusing and recycling in order to give a better use of goods and skills, which not only provides an innovative experience but also an economical benefit.

The ‘use, don’t own’ notion

According to Vincent Rousselet, director of consultancy Vincent Rousselet & Associates, there are 4 factors that have been essential in the spring and development of this peer to peer consumption model:

  • The recent credit crunch has made people reconsider their consumption patterns.
  • The increased development of the internet and the global connectivity
  • The tracking of user online behaviour provides valuable, predictive insights (big data)
  • The rise in the user’s consciousness of the consequences of consumerism, regarding specifically the global climate change.

So far, the technological platforms are the foundation and main channels that let this collaborative system evolve around the world. The Nesta report ‘Making Sense of the UK Collaborative Economy’, states that in 2014 “25 per cent of UK adults used internet technologies to share assets/resources over the last year.”

Some of the most outstanding examples are Airbnb and Uber. The first one encourages individuals to share their homes for short periods of time while the latter transforms private cars into resources for public transportation. Most of these companies are for-profit services that only keep a small fraction of the fees charged.

According to the Journalist’s Resource, Airbnb has over 10 million guest-stays on their records and 500.000 properties listed while Uber is doubling its profits every 6 months.

Even though this economic model has worldwide detractors that argue it replaces secure jobs through a trend of part-time, low-paid work, there are already around 860 start-ups in this sector. Accounting for 1 in 10 of these, the UK is the European capital of the sharing economy.

Stand out start-ups

Since these peer-to-peer services are an alternative towards the fulfillment of the different consumption patterns, there are several start-ups that are worth noting due to its creativity or valuable contribution to a more sustainable socio-economic model:

1. Feeding Forward (United States)

Sharing economyThis platform allows any kind of business can request a pick up of their food surplus. Considered to be a donation, it is afterwards delivered to nearby shelters in need. The objective is to allow companies to receive a tax reduction and reduce disposal costs while ending hunger in the world.

 2. Fon (Spain)

Sharing economyThrough millions of hotspots around the world, it enables users to share their WiFi network in exchange of getting this service for free in any of the 16 countries that are part of their network. It started with residential wireless connection only and then moved forward to small, medium and large venues.

 3. Misterbnb (United States)

Screen Shot 2016-01-14 at 03.03.11With 30.000 hosts in 130 countries, this is the largest gay travel accommodation in the world. The objective is to develop a sense of belonging by helping this community to travel safely while learning local insider tips.

 4. Hassle (United Kingdom)

sharing economyRegardless of the venue (room, flat or even a mansion) this company is able to provide a local professional cleaner in a 60-second online request. No matter if it is a one-off, weekly or a fortnightly clean, the cost per hour will always be the same and it can be refunded if the service is not good enough.

5. Pley (United States)

sharing economySubscription platform that allows families to rent toys for a short period of time (as kids grow). Through a 70% cost reduction and the elimination of clutter, the aim is to raise a playful, creative generation aware of the principles of sharing and waste reduction.

 6. Kiwi (Colombia)

sharing economyAs long as it is legal, this company challenges users to ask them for any kind of service or product. Food, alcohol, electronics, reservations, plane tickets, health care services, clowns and even pranks can be requested. Through a network of national and international providers, Kiwi is capable of providing a 24/7 service in Bogota and Mexico City.

The Sharing Economy has had a smashing beginning. Even though it seems to be a promising land entailing a social, cultural, economic and environmental transformation, it is paramount to create global and local legal frameworks able to regulate its proper implementation.

If this system manages to integrate and assemble the multiple society sectors under a common good premise, in the future we might discover that we are currently in a historic transitional period towards a new worldwide economic model.

Written by Estefanía Jurado Rodríguez

Events

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Representatives from Future media got to attended the Mobile Convention in Amsterdam,on 22nd May 2014 at the imposing Beurs van Berlage, Mobile Convention Amsterdam (MCA) is the leading annual event for mobile marketing and technology professionals in Northern Europe. The convention offers broad insights into the future technologies, mobile landscape, and showcases the business possibilities of the latest applications. Every year more than 800 professionals from marketing, media, banking, ICT and telecom join MCA and exchange their ideas, knowledge and experience.

mocoam2 The main hall of conference. Paronama picture by @ThanhHoaHoang.

@ThanhHoaHoang and @Ad340soye were given a precious responsibility to represent Future Media at the convention in Amsterdam. As Digital marketing professionals we wanted to amplify the event on social media- The plan was to have a twitter interview with any available speakers at the convention prior to the event date. Luckily for Us @Krijn (Krijn Schuurman) and @Chrizzieman (Chris Bannink) agreed.
We also made use of other social media platforms for live updates during the event such as Vine, Flippagram, Instagram and tumblr
Before setting off to Amsterdam, with support from @Brillthings, we had done great online interview, creating good content for the approved event hashtag #MoCoAM, questions varied from the upcoming wearable devices (Google glass, iWatch) to the future of mobile marketing, we even talked about the TV hat in the video below, kindly leave your comments on if you would buy this.

Screenshot of the Twitter interviews.
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We were satisfied with our contribution towards the event amplification and the event itself,@BCUFuturemedia gained 10 new followers and there were 1084 tweets recorded under #MoCoAM.

22nd May 2014, #MoCoAm officially started. Overall, there were approximately 45 presentations throughout the day, from 10 AM to 4PM. They were organized under 4 different categories: mobile marketing, mobile commerce, mobile enterprise and mobile payment. Due to lack of time, we could only attend some of them. But still, we were fascinated and overwhelmed by new knowledge and experiences from the speakers.
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Takeaway.com introduced a new way to make your food order easier than ever – online order. Takeaway.con allows you to order food from more than 27 thousand restaurants in 10 countries. Their 6 offices can be found in 5 countries, providing jobs for approximately 350 people. In total more than 1,7 million orders are taken every month. The company witnessed 50% growth in 2013. Those are impressive number that can tell a story. But it would be a mere story without the appearance of mobile in this. The CEO of Takeaway gave us all an advice on how we should expand the business. By making a persuasive comparison between mobile application and website, he believed using a PC to order your food is not an encouraging way, and smart phone is the right one to do this work. Therefore it affirms the fact that along with Internet, mobile eventually plays an important part in changing our lifestyle from the smallest thing.
David Nguyen of Accenture shared this APX-LAB video with us to highlight the possibilities available with glass technology.
mocoam7Picture by Emerce (https://www.flickr.com/photos/emerce/)
Google glass is in its beta version it is being sold to developers only in the USA so far and not commercially apparently the price tag is around $1,200. I tried one on and If I had that kind of money to throw on a technological device I actually would and I don’t think people who wear them look like robots!

APX Video 2012 from APX Labs on Vimeo.

We got to see this solar powered dress by @Pauline_DongenThe two wool and leather prototypes comprise parts with solar cells which can be revealed when the sun shines or folded away and worn invisibly when they aren’t directly needed. The dress incorporates 72 flexible solar cells. Each of them, if worn in the full sun for an hour, can store enough energy to allow a typical smartphone to be 50% charged.
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Another device on display was the double robot, according to the developers, Double enables a revolutionary new level of interaction with your remote team.Having your own Double in the office means you can be free to roam around anywhere without having to schedule a meeting. Double takes everything you love about video calls on an iPad and puts that on a mobile base that puts the remote worker in control. Your Double is always on, ready to take you anywhere you need to go.Employers can rest assured that their remote employees never miss out on important conversations around the workplace.
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Next fancy device was the pimped out drone from Accenture, the drones have having different algorithms for different solutions for example one of their clients FutureMine uses the on-site drone for monitoring the morning traffic speeds and road rules observance for the mine’s employees and contractors travelling to work along the public and mine lease road. Real-time data drives real-time performance management potentially reducing serious safety incidents as well as driving an improved safety culture.
mocoam10Picture by Emerce (https://www.flickr.com/photos/emerce/)

Another amazing presentation was Heineken #Sharethesofa: leading the charge in real-time second screen marketing. Antoinette Hoes of DDB&Tribal presented how Heineken exploited the notion that millennial’s hardly ignore their mobiles even when they are watching TV as the feel a need to share real-time experience with friends on the program they are watching.
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The Consumer Electronics Association (CEA) and National Association of Television Program Executives (NATPE||Content First) released the findings of the first part of a joint research study analyzing how and why consumers use Second Screen devices to engage with video content. Of the Second Screen users surveyed, 79% access a second device while watching TV programming.
The idea developed through the combination of two key insights: firstly that 70% of UCL viewers watch the game at home, the second that more than two-thirds of Heineken consumers are also online while watching TV and thirdly that Twitter is the number one social media platform being used during live TV shows.
The match with HernanCrespo resulted in 46.8m earned impressions, 78% Twitter share of voice among UCL sponsor.
This is not the first time a second screen strategy is being deployed by the guys from Holland, Heineken / Star Player This iOS app from Heineken, which launched in 2011, provides a second-screen gaming experience for the football fan without distracting him/her from the game. “Dwell time” with the app has averaged 56 minutes.

This year was the 5th anniversary of the convention and it was a huge success. The whole conference was professionally organized and very insightful with more than 60 speakers sharing their learnt lessons.
After the convention day, we spent our last night and morning in Amsterdam with joy and excitement. Amsterdam is surely a city of tourism: beautiful scenario, friendly citizens and excellent traffic. Arriving at the airport, we did not have any difficulties to get to our hotel, where we were warmly welcomed. We spent our free time going shopping, exploring around the area we stayed and enjoyed the local restaurant. The trip was unforgettable and we want to express our deepest thank towards Mark Brill and Marie, who gave us this precious chance to attend such a professional conference and visit Netherlands.