10/12/2013European Alliance of Living Labs, Brussels

THE SHARING ECONOMY HOT TRENDS AND WHAT TO EXPECT

FOR 2014 IN EUROPE

Marco TorregrossaEuropean Sharing Economy Coalition

Market Developments Movement towards professionalism of sharing services

(To Follow -> Airbnb and B&Bs) Reputation and trust to become a new currency

(To Follow -> Bitcoin) Accountability in collaborative manufacturing, more

business to “police” the system and ensure equal retribution for contributors

More connection between collaborative consumption and collaborative production (To Follow -> 3D printing)

More removal of “middle-men” (To Follow -> from sharing companies owning the stock to peer2peer sharing)

Market Developments (Cont …)

More partnerships between corporates and startups in traction sectors (housing, mobility, retail, food, education) and across EU Member States (To Follow -> Marriott/Liquid Space, Google/Lending Club, BMW /ParkatmyHouse, Ebay/Patagonia, GE/Quirky)

More cooperative structures chosen for Ltd companies, particularly at local/neighbourhood level (To Follow -> Coop Europe)

Integration with sensors development and internet of things

(To Follow -> smart home appliances and mobile apps) Increased focus on customer service for sharing

enterprises (To Follow -> Uber)

The EU 2020 Strategy and the Sharing Economy

“The consumption of goods and services should take place in accordance with smart, sustainable and inclusive growth and should also have an impact on job creation, productivity and economic, social and territorial cohesion".

- EU 2020Strategy

TaxationInsuranceLabourLicensingHealth and safetyDigital

Consumer protectionEnvironmentCertificationData privacyPatentsIPRFinance

Regulatory Topics Impacting the Sharing Economy

Policy Developments “Shareability” to be effectively integrated in EU innovation

policies (To Follow -> EU2020 Strategy)

More financial support from public authorities to sharing economy startups e.g. on market data collection (To Follow -> CAPs projects of DG Connect e.g. co-working spaces and new H2020 calls)

White Paper and Consultation Conclusions on Crowdfunding (To Follow -> DG Internal Market and European Crowdfunding Network)

Possible EU Commission Communication on “Collaborative and Participative Consumption” (To Follow -> DG Health & Safety – May 2014)

Recognition of micro-entrepreneurship and freelancing into EU labour legislation (To Follow -> revision of Directive on Professional Qualifications)

Policy Developments (Cont …) More cross-sectoral coalitions for advocacy with a focus on top-

down approaches (To Follow -> 9Flats, Wimdu, Housetrip alliance in p2p accommodation)

Network of Sharing Cities to be possibly integrated in the EU IP on Smart Cities (To Follow -> HL Sherpa Group Meeting 31/03/2014 and CoR)

More attention for end-of-life phase in current product designs, as customer will seek durable and shareable products designed for longevity (To Follow -> EU eco-design directive revision)

Sharing Economy and Freelancing Petition in European Parliament (To Follow -> 2014 European pre-election campaigns)

Consumers protection effectively enacted for electronic payments (To Follow -> EU Consumers Agenda and e-payment directive revision and BEUC)

Direct financial support to high speed broadband projects at local and regional level (To Follow -> EU Digital Agenda Developments)

Challenges to Overcome Scaling up from the young, urban and IT savvy to a viable

alternative for everyone Changing consumers’ habits and cultural barriers e.g. in

new EU Member States with rising middle class Resistance from incumbents and top level corporate

mindset e.g. hotels, transportation etc Friction with trade unions and consumers organisations on

workers and consumers rights & safety Liabilities and the need for targeted insurance products for

sharing assets Fragmented start-up scene with uncertainty about funding

after initial VC

Challenges to Overcome (Continued)

EU Competition legislation inhibits certain collaboration between companies (within product chains can be seen as a cartel)

Guidelines needed for public procurers in support of sharing economy enterprises

Unintended macroeconomic effects: surging prices in real estates, taxes, over-regulation

Socialistic values vs. free market capitalism Lack of standardized reputation systems Black market limitation Concerns over public safety and standards on quality control

Environmental Concerns of Sharing Economy Rebound effects (offset initial sustainability benefits)

Does sharing under-utilised items leads to longer lasting and higher quality products or leads to increased and faster consumption?

Does home sharing lead to a more sustainable tourism or leads to more tourism, hence higher environmental impacts?

Does car sharing lead to more sustainable transport or the money saved from car sharing is reused into long distance travel?

Does office sharing lead to more sustainable energy use? Does movie streaming lead to higher carbon impact

coming from the intensive energy use caused by inefficient equipment?

Environmental Concerns of Sharing Economy (Cont …) Increased and faster consumption, if sharing is

used as trial before buying new products Increased disposal of old items in exchange of

newer ones, if shared item is cheaper and with lower quality

Increased transport, distribution, logistics and related CO2 emissions (e.g. delivery of items from home to home)

Way Forward for Sustainability and Sharing Economy Invest in behavioural change, awareness raising

campaigns and capacity building to reduce the rebound effect

Create the right metrics to assess the long-term positive environmental impacts of the sharing economy, measured against key performance indicators

Create minimum environmental performance standards with high benchmarking potential

Commission environmental impact assessment studies on sharing assets above all in large cities

A Role for Freelancers in the Sharing Economy

40%of EU’s workforce will be

freelances by 2020 and these are the users and providers powering up the sharing economy

IndependentEU Affairs and

Funding Consultants

MARCO TORREGROSSAEuropean Sharing Economy Coalition

marco.torregrossa@euro-freelancers.euhttp://www.euro-freelancers.eu/european-sharing-economy-coalition/

Twitter: @EuroFreelancers

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