BMGT301 Chapter 11: The Sharing Economy, Collaborative Consumption, and Efficient Markets through Tech

technology

allows diverse product and service providers to connect with consumers

-offers far greater reach and efficiency than traditional markets

airbnb, turo, boatsetters

examples of product owners become providers of rentals

car rides (uber/lyft), pet sitting (rover), meal prep (feastly), home services (care.com)

new class of micro-entrepreneurs providing personal services

rent the runway, zipcar with autos, chegg with textbooks

firms buying inventory and renting it out

collaboratively consumed

an individual takes possession of an item for a period of time and then returns it for use by others

-consumers collaborate as financiers, pooling capital to back projects (Kickstarter, GoFundMe) and provide loans (LendingClub, Kiva)

-internet-enabled market makers

-roots in eBday and craigslist

goods

-pre-owned: eBday, craigslist (peer-to-peer supplied); thredUP (firm-owned inventory)

-loaner products: Zilok (peer-to-peer supplied): Rent the Run way, Chegg (firm-owned inventory)

-custom products: Etsy, CustomMade

services

-professional services: Upwork, crowdSPRING

-personal services: Angie’s List, Handy, TaskRabbit

-delivery: DoorDash, GrubHub, Instacart, Postmates (self-employed drivers for restaurant or grocery delivery), Drizly (drivers and alcohol inventory owned by suppliers)

transporation

-services: Uber, Lyft, Didi

-loaner vehicles: Turo (peer-to-peer supplied), Zipcar (firm-owned inventory)

places to stay

-office space: LiquidSpace, ShareDesk

-Airbnb, HomeAway, Couchsurfing

money and finance

-Money Lending: LendingClub, Kiva, Prosper

-Crowdfunding: Kickstarter, GoFundMe, Indiegogo

economic recession

many sharing economy firms were born during a prolonged, worldwide _____ _______

-stagnant wages boosted consumer interest in low-cost alternatives

-encouraged whole new class of lay people to offer services for hite

-many of the services also have an environmental benefit by fostering reuse and diminished consumption

peer-to-peer supply

technology allows for ____-___-_____ _____ without the need for inventory

-Airbnb doesn’t own its hotel rooms

-Uber and Lyft don’t own cars

Rent the Runway

packs product for delivery, runs a massive in-house garment cleaning effort, and retires dresses that are noticeably worn

fragmented markets

marketplaces extend the value chain by connecting suppliers and customers with search and discover, scheduling, payment, reputation management and more

word of mouth

on social media accelerates the growth of the sharing economy

47%

____ of participants in the sharing economy learned about the services they used via word of mouth

seven

every _____ riders attracts one new Uber user. Uber coupons to attract friends

91%

____ recommend the last service to a friend or colleague

social proof

positive influence created when someone finds out that others are doing something

facebook accounts

drivers and customers link to lyft through their _____ ______

audit trails and ratings

can help with trust, safety, and service but ratings can also reflect a crowd’s bias and reinforce discrimination

workplace protections

minimum wage, overtime compensation, unemployment insurance, workers’ compensation

WePay

firm that has stepped up to offer simple payment solutions that specifically target the challenges of buyer/seller platform operators

-makes adding payment capabilities to any site as easy as embedding a YouTube video, with a cut-and-paste of pregenerated code

WePay combat challenges

-veda fraud-fighting technology analyzes social profiles to get firms up and running with payments in a streamlined process

-has transaction history from hundreds of thousands of customers currently sending billions of dollars a year through the firm’s systems

-machine learning technology continually update the firm’s fraud models to adapt to new patterns it uncovers

Alphabet and Toyota

invested in uber

Alphabet and General Motors

invested in Lyft

Volkswagon

invested in Gett (Get Taxi)

Apple

invested in Didi

Conde Nast

invested in Rent the Runway

Walgreens

TaskRabbit partnership

IBM

worked with Deliv

Avid

acquired Zipcar

multibillion-dollar hospitality industry empire

-over 200 million guests have stayed with Airbnb so far

-listings in 81,000 cities and 192 countries, there is no other single hotel group that appraoched the firm’s worldwide reach

Listings include

-castles, yurts, caves, water towers, private islands, igloos, glass houses, tree houses

trust

essential for the sharing economy to work

-Ex) no one is anon on Airbnb, guest identity is verified via a two-step process

-firm offers $1 million guarantee for hosts, secure payment guarantees, and 24/7 support phone service

Airbnb

monitors transactions and communication at deep level

-reservations

-payments

-hotel/guest communication

-subsequence reviewers

-technology hunts for scams

health and safety laws

governing hotels require things like sprinkler systems, exit signs, clean towerls

HomeAway

competition threat to Airbnb

-several hotel firms experimented with homesharing (Marriott, Accor Hotels, Hyatt)

-travel sites like Booking.com TripAdvisor incorporate competitors into their search

$21 billion

Uber raised $_____ so far and boasts a private valuation of over $70 billion

50,000

claims to create over ______ new jobs a month

uber services

-trust and convenience

-customers summon their ride with the tap of a smartphone app

-riders can also set their pickup and drop-off destination and get a fare quote for their trip

-all payment handled through app

product-market fit

key concept in entrepreneurship and new product development that conveys the degree to which a product satisfies market demand. Successful efforts should be desired by customers, and scale into large, profitable business

lean cost of doing business

-eliminated the capital cost of a fleet

-customer feedback reduces the cost associated with auding driver quality and provides a continual evaluation of performance

surge pricing

uber raises prices where supply doesn’t meet demand to encourage drivers to work

Uber problems

-strikes by drivers

-accusations of the theft of self-driving car tech

-dishonesty

-rival Lyft accused Uber of unethical behavior, including calling and canceling Lyft rides to crater the efficiency

-culture shown to be hostile to women and minorities

-been hacked

Uber’s new technologies

exploring voice recognition and biometrics, panic button

mathematicians with PhD's

uber employing them in nuclear physics, astrophysics, and computational biology

“God View”

software system that shows maps, cars, locations of customers

Uber Health

offers APIs for integration into health care products

eleven partners

uber launched with _____ _____ including OpenTable, United Airlines, TripAdvisor, Hyatt Hotels

regulatory concerns, maintenance of quality service, uncertainty of expanding in global markets

Uber challenges

software platform for shipping and logistics

former CEO stated that he sees the firm as

bike messenger, restaurant, same-day delivery, prototype vertical take-off and landing vehicle

uber experiemented with…