||It has been suggested that this article be merged into Sharing economy. (Discuss) Proposed since February 2014.|
||This article is written like a personal reflection or opinion essay rather than an encyclopedic description of the subject. (February 2014)|
Collaborative consumption is a class of economic arrangements in which participants share access to products or services, rather than having individual ownership. Often this model is enabled by technology and peer communities.
The collaborative consumption model is used in marketplaces such as eBay, Craigslist and Krrb, emerging sectors such as social lending (Zopa), peer-to-peer accommodation (Airbnb), peer-to-peer travel experiences (LocalGuiding), peer-to-peer task assignments (TaskRabbit) or travel advising (Locish), car sharing (Zipcar) or commute-bus sharing (RidePal), Australia's GoGet CarShare, parking (ParkatmyHouse) and peer-to-peer RelayRides.
Origin and concepts
The term "collaborative consumption" was coined by Marcus Felson and Joe L. Spaeth in their paper “Community Structure and Collaborative Consumption: A routine activity approach" published in 1978 in the American Behavioral Scientist. The paper dealt with car-sharing. The term was used in more contemporary times by Ray Algar, a UK-based management consultant in an article entitled "Collaborative Consumption" in the Leisure Report Journal in 2007.
The concept has been championed by Rachel Botsman and Roo Rogers in their 2010 book What's Mine Is Yours: The Rise of Collaborative Consumption. In June 2010, ABC Television's Big Ideas programme included a segment showing Botsman's speech at the TEDx Sydney conference in 2010, describing collaborative consumption as "a new socio-economic 'big idea' promising a revolution in the way we consume". In 2011 Botsman described it as a social revolution that allows people to “create value out of shared and open resources in ways that balance personal self-interest with the good of the larger community.” At TEDGlobal2012 Botsman articulated that the concept of trust, across multiple platforms, would constitute the currency of a new collaborative economy, asserting that “reputation capital creates a massive positive disruption in who has power, influence and trust."
In 2010, collaborative consumption was named one of TIME Magazine's 10 ideas that will change the world. The financial crisis of 2007–2010 and subsequent housing bubbles have prompted consumers to reconnect through peer-to-peer marketplaces that turn underutilized assets and resources into new jobs, income streams and community networks. Napster pioneered peer-to-peer file sharing and subsequent platforms have emerged to facilitate the sharing of content, cars, bikes, tools and random household appliances.
Types of collaborative consumption
Product service systems
This system is based on users paying for the benefit of using a product without needing to own the product outright. Product service systems are disrupting traditional industries based on models of individual private ownership. Goods that are privately owned can be shared or rented peer-to-peer.
A system of collaborative consumption is based on used or pre-owned goods being passed on from someone who does not want them to someone who does want them. This is another alternative to the more common 'reduce, reuse, recycle, repair' methods of dealing with waste. In some markets, the goods may be free, as on Freecycle and Kashless. In others, the goods are swapped (as on thredUP and SwapTree) or sold for cash (as on eBay and craigslist). There are a growing number of specialist marketplaces for preowned fashion items, including Copious, Vestiaire Collective, BuyMyWardrobe and Grand Circle
This system is based on people with similar needs or interests banding together to share and exchange less-tangible assets such as time, space, skills, and money.
The trust issue
The Sharing Economy relies on the will of the users to share, but in order to make an exchange, users have to be reliable and trustworthy. Developing trust in unfamiliar people and building a reputation when using different P2P marketplaces appear to be central issues in the development of the collaborative consumption. Some start-up companies say they are developing a solution such as Traity, TrustCloud and Shake in the US and Fidbacks in Europe.
Criticism and controversies
Salon.com criticized the for-profit sector of collaborative consumption, writing that collaborative consumption businesses extract profits from their given sector by "successfully [making] an end run around the existing costs of doing business" - taxes, regulations, and insurance.
- Bike sharing
- Book swapping
- Carpool/Ride sharing
- Car sharing
- Clothes swapping
- Club theory
- Collaborative workspace
- Crowd funding
- Garden sharing
- Home exchange
- Fractional ownership
- Peer-to-peer lending
- Peer-to-peer renting
- Product service system
- Seed swap
- Share taxi
- Time banks
- Virtual currency
Benefits of collaborative consumption
The benefits of collaborative consumption include reducing carbon foot print by sharing transportation and assets, saving costs by borrowing and recycling items, and increasing happiness and contentment due to positive social interactions
Notes and references
- Botsman, Rachel, and Roo Rogers. What's Mine Is Yours: The Rise of Collaborative Consumption. New York: Harper Business, 2010.
- Hamari, J., Sjöklint, M., & Ukkonen, A. (2013). "The Sharing Economy: Why People Participate in Collaborative Consumption". SSRN Working paper.
- Sharing Is Contagious: An Infographic on the Rise of Collaborative Consumption | Design on GOOD
- Harvard Business School Club of New York
- Felson, Marcus and Joe L. Spaeth (1978), “Community Structure and Collaborative Consumption: A routine activity approach,” American Behavioral Scientist, 21 (March–April), 614–24.
- Rachel Botsman, Roo Rogers , What's Mine Is Yours: The Rise of Collaborative Consumption, HarperBusiness, 2010 ISBN 978-0-06-196354-4
- Rowan, David (February 6, 2011). "Rentalship Is the New Ownership in the Networked Age". Wired.
- Rachel Botsman on Collaborative Consumption - Business - Browse - Big Ideas - ABC TV
- "TED Blog / Trusting in strangers: Rachel Botsman at TEDGlobal2012" (WebCite archive), TEDGlobal2012, Edinburgh, Scotland, June 28, 2012. Video posted September 24, 2012.
- "10 Ideas That Will Change The World". Time. March 17, 2011.
- Cassinelli, Enrico (2013-03-27), How Collaborative Consumption Will Improve Our Production System http://www.sharedesk.net/blog/2013/03/how-collaborative-consumption-will-improve-our-production-systems/
- Beyond Zipcar: Collaborative Consumption - Harvard Business Review
- Andrew Leonard, You’re not fooling us, Uber! 8 reasons why the “sharing economy” is all about corporate greed, Salon.com, 2014.02.17
- Tom Slee, The secret libertarianism of Uber & Airbnb, Salon.com, 2014.01.28
- Anya Kamenetz, AirBnb wins New York court victory, but the city still present challenges for the popular room-finding site, Fast Company and Salon, 2013.09.30
- Andrew Leonard, Millennials will not be regulated, Salon.com, 2013.09.20
- Andrew Leonard, The sharing economy muscles up, Salon.com, 2013.09.17
- Poquérusse, Jessie. "The Neuroscience of Sharing". Retrieved 16 August 2012.