Do companies have to join the sharing economy

Do companies have to join the sharing economy

Posted by Torben Rick | July 20, 2013 | Strategy
sharing economy

The internet has evolved from communication to social media and the new shared economy.

Right now, customers are sharing media and ideas on social technologies, but in the future, they’ll use similar technologies to share products and services, which will cause a ripple of impacts far more disruptive than what we’ve seen before.

The rise of the sharing economy

These new shared economy services rely on the web, impersonal relationships, and they are based on ratings and reciprocal reviews from unknown people to build trust among their users.

Social technologies radically disrupted communications, marketing, and customer care. With these same technologies, customers now buy products once and share them with each other. Beyond business functions, the sharing economy impacts core business models.

The rise of the sharing economy

Disruption: Customers are now sharing products and services with each other, like AirBnb (vs hotels), Lyft (vs buying cars), Lendingclub (vs banks), Borrow or Steal  (instead of buying bags and clothes), Zipcar (vs renting cars) etc.

Revenue loss that results from customers sharing

Disruption: Every car-sharing vehicle reduces car ownership by 9-13 vehicles. The cascading impact to the ecosystem has far-reaching impacts to auto loans, car insurance, fuel, auto parts and other services.

For corporations, the direct impact is revenue loss that results from customers sharing products and services with each other.

Will this movement impact every industry?

Collaborative consumption has proven to be a lasting, widespread, and disruptive movement, which is why a number of forward-thinking companies have already begun incorporating sharing-based strategies into their core businesses.

Some companies have joined this movement. For instance, Toyota rents cars from dealership lots, and Patagonia partnered with eBay to encourage customers to buy and sell its used products. NBC has partnered with Yerdle to foster peer-to-peer sharing.

Will this movement impact your business?

The sharing economy - access to assets

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About The Author

Torben Rick

Experienced senior executive, both at a strategic and operational level, with strong track record in developing, driving and managing business improvement, development and change management. International experience from management positions in Denmark, Germany and Switzerland.

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