Building A Collaborative Economy
Collaborative Consumption is the name of a new movement in swapping, sharing, bartering, trading and renting - made possible by technology (rephrased from the Collaborative Consumption site).
We've all experienced or been touched by the concept of collaborative consumption in some way or another, whether we know it or not. Ebay (sharing items), Wikipedia (sharing knowledge), and Flickr (sharing photos) are all examples of collaborative consumption at work.
I was first exposed to the concept through the TED Video by Rachel Botsman, which you can see below. I then read Rachel's book (co-authored with Roo Rogers), What's Mine Is Yours: The Rise of Collaborative Consumption
It is a movement in the making.
On this page, you will learn more about what collaborative consumption is and why it is not a fad; but rather, a new way of doing business and building community.
Collaborative consumption
is one of the
"10 ideas that will change the world."
~ Time Magazine
Rachel Botsman at TED Sydney
The Case for Collaborative Consumption
What do you know about collaborative consumption?
Why Collaborative Consumption?
The 20th century was the industrial age, a time of massive innovation in the making of products, making our life easier in many ways.
While this is not a bad thing, it ramped up into hyper-consumption, resulting in massive waste and threats to our environment.
Our economy now depends on the production of more, which is simply not possible on a finite planet.
What is needed today is a shift in values around the resources we consume, the relationships we foster, and the concept of sharing. We teach our children to share, and then somehow it becomes a bad word when we are adults.
What are the benefits of a more collaborative environment? How about deeper relationships, a supportive community, respect for each others' knowledge and skills, and maybe even greater happiness.
Image Credit: Shaking Hands by bostonphotos
The 4 Principles of Collaborative Consumption
from What's Mine is Yours
- Critical Mass - Through sufficient choice and convenience, momentum is built until there is a tipping point, where the concept is self-sustaining.
- Idling Capacity - Works best with items that are not used a lot, i.e. power drills.
- Belief in the Commons - there are many resources that can be shared, i.e. land, culture, knowledge, etc.
- Trust between strangers - participants can self-govern if given the right tools to do so, i.e. the reputation system on eBay.
Type of Collaborative Consumption Systems
Redistribution Markets
Sharing your Goods
Social networking is used to redistribute goods from where they are no longer needed to where they are needed.
Exchanges can be free, as in Freecycle, sold for points, as in UISwap, or for cash, as in eBay or Craigslist.
The benefits of redistribution markets are that they extend the life of products, thereby reducing waste and the cost of new production, and they reduce the transaction costs of doing so.
My husband and I are downsizing and have used Freecycle, Craigslist, and Used Cardboard Boxes in preparation for our move. Besides being a great way to find people who need our stuff, it has been fun interacting with people in the community. Most people are interesting and trustworthy.
- Used Cardboard Boxes
- UsedCardboardBoxes.com "rescues" quality used boxes from large companies that might otherwise recycle them or simply throw them away. Boxes are inspected and sorted by size and shape, then pre-packed (with accessories) into "stacks" and "kits".
- Freecycle
- A network that makes it easy for you to give away your unwanted stuff to someone who wants it.
What do you think?
About Redistribution Markets
Would you use a redistribution market service?
Yes. Tell us if you've used a redistribution market.
kimmanleyort says:
I've used Freecycle, Craigslist, and UsedCardboardBoxes with great success.
No. Why not?
Collaborative Lifestyles
Money isn't the only Currency
Collaborative lifestyles involves the exchange of less tangible assets, such as knowledge, time, workspace, creativity, homes, gardens, etc.
This is the old bartering system made even easier with technology. Currency does not have to be based on a monetary value, but could be based on time.
- OurGoods
- A barter company for the creative community.
- Bartercard
- A Bartercard is like a credit card. Members receive a plastic transaction card and an interest-free line of credit. Trade Dollars are credited to the member's Bartercard account upon the sale of goods and services through the exchange.
- Couchsurfing
- Share your couch with travelers from around the world.
What do you think?
About Collaborative Lifestyles
Have you used a collaborative lifestyle service?
Yes, and this is what I experienced.
No. Would you consider it?
kimmanleyort says:
I haven't tried one of these services yet, but I might. Money should not be the only tool for exchange. My daughter has been couchsurfing around the world, and it has been a fabulous experience for her.
Product Service Systems
Sharing Goods and Services
Product service systems are perfect for items that are not often used (power drills), have high purchase cost (solar panels), have limited use due to fashion (handbags), are temporary needs (baby clothes), or their value or appeal diminishes with time (movies).
Additionally, they work well to extend the life of products. Companies can offer maintenance, repair, or upgrading.
- Zipcar
- A car when you need it, without the hassle of ownership.
- Interface Carpets
- Offer carpet tiles that can be replaced. Use sustainable materials and recycle old carpets.
What do you think?
About Product Service Systems
Have you tried a Product Service System?
Yes, and this is what I experienced.
No. Will you consider it?
kimmanleyort says:
No, but I would consider it. I am especially interested in car sharing. I work from home and rarely use my car.
"These collaborative-based brands are just tools, but tools with a soul and a mission and rallying cry - and that's why they will continue to thrive."
~ Fred Wilson, What's MIne is Yours
Collaborative Consumption in the News
- Consumption 2.0
- That sentiment is the driving force behind a new economic model called collaborative consumption, where consumers use online or off-line tools to rent, share, and trade goods and services. Some people refer to it as Zipcar capitalism, ...
- The Gen Y guide to collaborative consumption
- Fueled by the instant connection and communication of the Internet, collaborative consumption, (or the sharing economy) is changing the way we work, play and interact with each other. By Shareable.netThu, May 24 2012 at 3:46 PM EST An incentive for ...
- Meet the "collaborative" consumer
- By Jill Allyn Peterson, contributor FORTUNE -- Collaborative consumption is a concept that can seemingly describe anything from Netflix to New York City's Park Slope Food Co-op. It has been called a "revolution" by "creative entrepreneurs who want to ...
- Radical Sharing for the New Industrial Revolution
- All thanks to a movement known as collaborative consumption and a few innovative companies. The sharing economy, or access economy, also known as collaborative consumption, is characterized by the sharing of goods, space, services and expertise, ...
Articles about Collaborative Consumption
- The Issue of Trust
- from Forbes Online
- Digital Oxytocin: How Trust Keeps Facebook, Twitter Humming
- Fast Company article on the concept of trust.
- Collaborative Consumption Gains Traction
- from the Triple Pundit, August 2011
- When Collaborative Consumption Goes Bad
- Article on Grist, regarding the incident with AirBnB in August 2011. There is a lot more on the Internet about what happened, and how the company and other collaborative consumption companies have responded.
Follow Collaborative Consumption on Twitter
What's Mine is Yours
The Rise of Collaborative Consumption
What's Mine Is Yours: The Rise of Collaborative Consumption
Amazon Price: $15.83 (as of 06/01/2012)
List Price: $26.99
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"Access is better than ownership."
~ Kevin Kelly, What's Mine is Yours
More Books on the Collaborative Concept
Collaborative Consumption Sites
CC Lab, a collaborative innovation consultancy
Collaborative Fund, supporting emerging technologies
About the Author
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