The Sharing Economy------

Pathways to inclusive entrepreneurship and growth

Edinburgh, Scotland

Professor Robin Teigland Stockholm School of Economics

robin.teigland@hhs.sewww.slideshare.net/eteigland

@RobinTeiglandJanuary 2016

http://www.slideshare.net/eteigland

Uber• Launched June 2010

• 300 cities in 58 countries • Limited physical assets• USD 60 bln valuation (Ericsson – USD 32 bln)

Exponential growth by “doing more with less”

A system that activates the untapped value of all kinds of assets through

models and marketplaces that enable greater efficiency and access.

- Botsman

The Sharing Economy

Harvard Business Review, 2014

The Sharing Economy: Embracing Change with Cautionhttp://www.slideshare.net/eteigland/sharing-economy-webb

The Sharing Economy is enabled through peer-to-peer (P2P) transactions on

multi-sided platforms (MSPs)

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

“Sharing” is big business…

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

USD 26 bln today -> USD 335 in 2025

Increasing efforts to regulate the sharing economy

If Uber were to pay drivers as employees in USA.

Spawning a new form of capitalism -Modern day sweatshops?Digital Robber Barons?

“Monopoly” platform “Monopoly” platform

“Perfectcompetition”

“Perfectcompetition”

Jobs vs Gigs

LEARNING

p2p learning

open courses & moocs

PRODUCTION

co-design / co-innovation

digital peer production

distributed fabrication (makers)

FINANCE

p2p funding

p2p payments

p2p insurance

compl. currencies

GOVERNANCESWARM

participatory organizations

participatory government

blockchain / DAO

CONSUMPTION

redistribution

local food systems

product-service

on-demand services

COLLABORATIVE ECONOMY FRAMEWORK V0.1

Banking is essential,

but banks are not.

Bill Gates

Four forms of crowdfunding   Form Benefits for funders

Donation-based Donation Intangible benefits.

Reward-based

Donation or pre-purchase

Rewards in addition to intangible benefits.

Equity-based Investment

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

intangible benefits may motivate too.

Loan-based LoanRepayment of loan with

interest. Alternatively intangible benefits if loan

given interest-free.

Crowdfunding growth 2012-2015

USD 34 bln E

zopa

But in China alone in 2015…

http://www.crowdfundinsider.com/2016/01/79612-report-china-p2p-lending-topped-150-billion-in-2015/

Democratizing innovation through access to capital?

Democratizing innovation through access to capital?

Women in USA <30% of business

owners <15% of angel

investors <10% of venture

capitalists

Marom, Robb and Sade 2014

Women on Kickstarter

35% of project leaders

44% of investors Women invested in

women project leaders (>40% of projects)

VS

Following regulations…

EU/EEA No country can require a prospectus for round of

<100,000 EUR For round of >5 million EUR an EU prospectus is

always required In Sweden

Limit is 2.5 million EUR without a prospectus Less than 150 ‘non-qualified’ investors without a

prospectus ALSO shares in non-publicly traded companies

cannot be advertised in Sweden

Increasing forces for local community

Toborrow.se

Hoffice – a Swedish concept gone global

US: 40% of workforce

freelancers

A number of bottom-up collaboratives

Scheveningen Harbor – The Hague

Moving into hardware:A 3D printer workshop on Lisette’s boat

RepRap communityE-commerce

Local networks of 3D printers

Developing circular economies

Local demands?Local materials?

Reduced transport?

Thomas Jefferson (1816)“Laws and institutions must go hand in hand with the progress of the human

mind.”

The problem is that the human mind itself can’t keep pace with the advances

that computers are enabling. 

http://wadhwa.com/2014/04/15/mit-technology-review-laws-and-ethics-cant-keep-pace-with-technology/

The challenge of ensuring trust

1. Trust in the platform2. Trust in the other users

3. Trust in the products and services4. Trust in the financial transactions

Leap of faith when meeting strangers -> Increased trust

in society?

Innovation is forward looking

while regulations are backward

looking.

http://www.weforum.org/sessions/summary/rise-demand-economy

Challenges in the Sharing EconomyEnsuring trust

−In the platform, other users, products and services, financial transactions?

Regulatory−What is “employment”?

Security, taxation−What are new “rules” around “consumption”?

Taxation, safety, big data and privacy, IP and ownershipEconomic implications

−New pricing mechanisms -> deflation?−Lower demand for capital in “Zero Marginal Cost

Society”?−Net effect on labor productivity?

Scenarios for 2020

http://www.slideshare.net/eteigland/sharing-economy-webb

Four scenarios for 2020High Tech Adoption

Global Recession

Global Growth

Internet of Space• Differentiated SE platforms

• Attraction of talent• Test market

• Focus on privacy and integrity• Transitioning industries

Freelance Economy• Differentiated SE platforms• High tech skills “exported”• Expansive crowdfunding

• Neo-sharing• “De-urbanization”

Business as Usual• Limited SE platforms

• Neo-sharers• Steady growth in freelancing

• Crowdfunding

Shadow Economy• TaskRunner society• Vast urbanization

• Monopoly SE platforms• Barter economy

Low Tech Adoption

Robin Teiglandrobin.teigland@hhs.se

www.slideshare.net/eteigland@robin.teigland

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