Sharing Economy vs Crowd Economy = Access vs Purpose

Image source: virgin.com

Image source: Virgin.com

From the times when large banks and the government machineries exuded trust and confidence in people to today’s era where renting homes and lending money to complete strangers – the trust economy has slowly but surely shifted to the side of the sharing economy.

While the likes of Uber and Airbnb are rendering ownership of objects obsolete, it’s the efforts behind the building of ‘trust’ that’s fuelling such lifestyle changes.

There’s a compelling TechCrunch article by Adriana Stan, which also mentions about the metric of trust and building up trust beyond just customer reviews. Everything about people will be measure, right from our influence, social following, work connections, etc, will also provide one with our ‘trust score’ – something like the ‘credit score’ that banks and traditional ‘trust’ institutes are built upon.

Inspired by the shares by Epi Ludvik Nekaj and his Crowdsourcing Week series where he elaborates on the 5 Ps (People, Purpose, Platform, Participation, Productivity) of the Crowd Economy.

In his piece he mentions about how the foray of the web and mobile networks, have facilitated increased collaboration and cooperation. Defining:

The crowd economy is a dynamic ecosystem of productive people who participate through a platform with a purpose to achieve mutually beneficial goals.

Based on deep dives and experiences with both forms of economies (Sharing vs Crowd), here are conclusions in 3 points:

  1. The sharing economy’s foundation is ‘Trust‘, while in the crowd economy, it is ‘Collaboration‘.
  2. The key driver of the sharing economy is availability of ‘extra Resources‘, while in the crowd economy it is availability of ‘extra Knowledge‘ that’s fuelling its growth.
  3. Commerce‘ focused organisations have best leveraged the sharing economy, while ‘Impact‘ focused organisations have made change with the virtues of the crowd economy.

CF Platforms: Own no startup, no investor

collaborative-consumptionA message that has been doing the rounds these days:

Uber, the world’s largest taxi company owns no vehicles.

Facebook, the world’s most popular media creates no content.

Alibaba, the world’s most valuable retailer has no inventory.

Apple, with sales of over 200 million smartphones and tablets does not own a factory.

Whatsapp with 3 million messages a does not own servers.

Airbnb, the world’s largest accommodation provider owns no real estate.

– Disruptive, innovative and collaborative consumption is shifting the lines of the economy.

Dare to innovate.”

Looking at the many other popular companies, including the crowdfunding ones, this has been the trend. In fact the crowdfunding and crowdsourcing epitomise the above qualities of being disruptive, innovative and collaborative. After startups and investors in such scenarios need to taught make change with the resources at their disposal.

This month during Crowdsourcing Week’s signature event (April 20-24) in Singapore, the community influencers and thought-leaders (including those from Airbnb & those working closely with Facebook on projects) are together doing to explore ideas, disrupt and may well together create a new global economy.

For the initiated keen to know more about how to accelerate their business through crowdsourcing and crowdfunding there’s a specially designed workshop on April 24th. Here’s your chance to explore how you too can disrupt and grow together.