8 Experts discuss entrepreneurship aspects of the Sharing Economy

Named as one of TIME Magazine’s 10 ideas that will change the world (2011 edition), Sharing Economy or Collaborative Consumption has broken barriers and created newer interpretations of how technology can transform business models. With an ever increasing number of entrepreneurs experimenting around this idea, the concept is now enabling greater degree of sharing in the human race then what has been customarily achieved.

With this background in mind, we recently conducted an expert roundup to understand few critical aspects which entrepreneurs should think through while building business models around the Sharing Economy Principle/Collaborative Consumption.

We are thankful to all the experts for providing us with such interesting and diverse perspectives. Without further ado, here are the inputs we have received to the 3 questions we have posted. (Inputs are sorted in the manner of response received)

QUESTION # 1

In your opinion, what is the most important aspect which entrepreneurs should keep in mind while they create business models around the sharing economy principle?

Robin Chase
(Founder and CEO, Buzzcar and co-founder and former CEO, Zipcar)

“I don’t think there is one single thing, because if you only did that one thing, you wouldn’t succeed. Success requires customer trust through transparency, how you finance, focusing on small markets where you can succeed in before expanding elsewhere.”

Rachel Botsman
(Global thought leader on Sharing Economy)

“Ensuring scalability without loosing on impact”

Shel Israel

“To my way of thinking, the key to any successful sharing economy company is whether it uses technologies to ensure buyers and sellers can establish trust and understanding of each other. Sharing economy is built on that. It doesn’t matter whether or not we trust Uber or Airbnb. What matters is whether we think the driver will get us safely to our destination in a clean vehicle at a reasonable price. How do we know the person renting us their home is not setting up a predatory trap to rob or abuse us?

Likewise, drivers need to know that you don’t plan to rob them at gunpoint when they pick you up. Lodging hosts need to trust that you aren’t planning to host drug-crazed orgies in their properties.

The companies that have succeeded wildly give buyers better deals than taxi or limo companies. But the value proposition is not sufficient for most people to abandon established brands, and regulated assurances about safety, security and cleanliness. This whole new rapidly emerging, disruptive economy is built on trust.”

“Ensuring scalability without loosing on impact”

Marco Torregrossa
(Managing Director at Euro Freelancers, Sustainable Collaborative Consumption and Production Specialist)

“Complying to supra-national laws (e.g. European Union)”

Albert Cañigueral
(Founder of ConsumoColaborativo.com and OuiShare Barcelona Connector)

“Providing real value to users (producers and consumers). Focus on the first 100 users satisfaction”

Samar Singla

 

“I think the two most important factors that make Sharing Economy platforms game changers are scalability and creation of value out of unused resources (increasing efficiency/utilisation).”

QUESTION # 2

According to you, which is that one industry which offers an unprecedented scope of growth for the sharing economy entrepreneurs?

Robin Chase

“Every sector indeed. Sharing finds its best successes starting with expensive items, or things that have a lot of transactional cost that technology can smooth. The benefit of sharing has to outweigh the costs of the transaction. This is why Zipcar and Airbnb were so quickly successful, and many of the small sharing sites are finding it more difficult. How easy can the platform make it to participate?”

Rachel botsman

“This question is tricky to pick but I would say different forms of p2p finance and applying the sharing economic lens to public assets/social problems”

Jeremiah Owyang
(Founder, CrowdCompanies)

Healthcare

Shel Israel
(Influential writer and speaker on social media issues)

Crowdfunding, healthcare, non profit, p2p lending, education

Recycling and energy

Energy

Albert Cañigueral

“The proven one is P2P lending, moreover P2B lending specially. Crowdfunding too. I would say collaborative finance in general.”

Samar Singla
(CEO, Juggernaut)

“Low/medium skill services like cleaning, driving, cooking, makeup etc.

This gives unprecedented choice to people on how they want to work. Secondly, it democratizes entrepreneurship because the better one’s skill is, the better value she can extract of her time.”

QUESTION # 3

What would be the biggest challenge which businesses in the Sharing Economy space will face in the coming years?

Robin Chase

“Regulatory hurdles do apply but only to a small subject. Startups don’t get pushback from incumbents — that comes later once you are successful. Lack of control over participant’s action resulting in inconsistent service experience is again a big challenge”

Rachel Botsman

“I think we will see a backlash from the providers (hosts, drivers, lenders etc.) who want more ownership in the companies and more rights. Regulatory hurdles are an immediate challenge but I think they will be overcome with time.”

Regulatory hurdles

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Shel Israel
(Influential writer and speaker on social media issues)

“Giving people a better deal, or experience is what is making the sharing economy so overwhelmingly disruptive and popular and that is going to be the biggest challenge for entrepreneurs”

“Regulatory oversight is an issue that will work itself out in the coming years. Government is always slow to adjust to fundamental societal changes. Traditional businesses will use traditional tactics–marketing, advertising PR, which have proven impotent against trustworthy sharing economy challenges. Job losses are often replaced by creation of better jobs. Controlling participants has always been mostly an illusion.”

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Antonin Leonard

(Co-Founder OuiShare , Collaborative Economy Strategist)

 

“Regulatory hurdles and pushback from traditional incumbent providers”

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Marco Torregrossa
(Managing Director at Euro Freelancers, Sustainable Collaborative Consumption and Production Specialist)

“Regulatory hurdles, disintermediation in sharing services and unionised self-employed workers.”

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Albert Cañigueral
(Founder of ConsumoColaborativo.com and OuiShare Barcelona Connector)

“In the short term regulatory hurdles for the platforms that reach certain scale.”
“In the mid-long term, delivering consistent consumer experience is clearly a challenge for mature platforms.”

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Samar Singla

(CEO, Juggernaut)

 

“Regulatory hurdles and delivering consistent consumer experience. More jobs will be created rather than lost. The nature of jobs will radically change though because of flexibility.”

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So what do you think about this expert roundup on the Sharing Economy and what would your answers be to these 3 questions?