Did you know that most power drills are used for an average of 12-13 minutes in their entire lifetime? Neither did I – and as Rachel Botsman the collaborative consumption guru points out, that’s a big piece of kit to buy and store when what you really want is a few holes.
Collaborative consumption describes the rapid explosion in swapping, sharing, bartering, trading and renting being reinvented through the latest technologies and peer-to-peer (P2P) marketplaces in ways and on a scale never possible before.
Time calls the concept one of the “10 ideas that will change the world” and in her recent book What’s Mine is Yours Rachel Botsman describes why.
Of course ideas like lending and product services systems have been around for a long time but today internet technology is removing the friction from P2P relationships, and a flood of activity is diverting us from ownership to access.
Zipcar, the US pay-as-you-go car rental service started modestly at university campuses and has 560,000 members today. Its recent IPO raised $174 million, over twice its original target.
Landshare connects people who have a passion for home-grown food with those who have land to share. Started in the UK in 2009, it now has nearly 60, 000 members and no doubt a profusion of veg.
Even banks are being by-passed by the collaborative consumption shift. Zopa is an online marketplace that matches people with money to invest with borrowers who need a personal loan. By cutting out the middleman Zopa offers competitive rates to both parties – and the default rate is less than 1%. As they say, everybody wins, except the fat cats!
What’s making it all possible? Years ago you’d be unlikely to form a business relationship with a complete stranger, but today the internet offers the social glue to build trust, and the efficiency to follow an individual’s track record.
As Wired puts it: “What matters in the new era is not your physical wealth, but your reputation”.
