1. Implications of the Sharing Economy?
December 2015

2. Halloween in Nashville, 1974

3. If the rate of change on the
outside (of an organization)
exceeds the rate of change on
the inside, the end is near....
-Jack Welch

4. Thx to R. Wieselfors, Ericsson for photos

5. Thx to R. Wieselfors, Ericsson for photos

6. 2015

7. People
• “Net generation”
• 24x7 “mobile” workforce
• Knowledge via MOOCs
• Sharing not owning
• Sustainability
Technology
• Broadband access
• Mobile phones
• The cloud
• Internet of Things
• Big Data
• 3D printing
• Robotics/AI
• VR/AR
• Holography
• Blockchain
Open Source IP
• Software
• Hardware
• Physibles
Convergence of…..
Finance
• Microlending/microfinance
• Crowdfunding/equity/P2P
• Non-fiat cryptocurrencies
• Mobile money/payments
• M2M payments

8. A system that activates the untapped
value of all kinds of assets through models
and marketplaces that enable greater
efficiency and access.
- Botsman
The Sharing Economy
Harvard Business Review, 2014
The Sharing Economy: Embracing Change with Caution
http://www.slideshare.net/eteigland/sharing-economy-webb

9. LEARNING
p2p learning open courses & moocs
PRODUCTION
co-design / co-innovationdigital peer production distributed fabrication (makers)
FINANCE
p2p funding p2p payments p2p insurance compl. currencies
GOVERNANCE
SWARM
participatory organizations participatory government blockchain / DAO
CONSUMPTION
redistribution local food systemsproduct-service on-demand services
COLLABORATIVE ECONOMY FRAMEWORK V0.1

10. The Sharing Economy is enabled through
peer-to-peer (P2P) transactions on
multi-sided platforms (MSPs)
http://sloanreview.mit.edu/article/strategic-decisions-for-multisided-platforms/

11. “Sharing” is big business…
http://www.web-strategist.com/blog/2015/06/04/the-collaborative-sharing-economy-has-created-17-billion-dollar-companies-and-
10-unicorns/
• ReveUSD 26 bln today -> USD 335 in 2025
(PWC)
• 17 companies valued at over USD 1 bln,
but 10 are privately owned

12. Uber
• Launched June 2010
• 300 cities in 58 countries
• Limited physical assets
• USD 51 bln valuation
(Ericsson – USD 32 bln)
Exponential growth by “doing more with less”

13. Decreased need for capital?

14. Major efforts to regulate the sharing economy

15. If Uber were to pay drivers as employees in USA.

16. Gigs vs Jobs: A race to the bottom?

17. Spawning a new form of capitalism -
Modern day sweatshops?
“Monopoly” platform “Monopoly” platform
“Perfect
competition”
“Perfect
competition”

18. LEARNING
p2p learning open courses & moocs
PRODUCTION
co-design / co-innovationdigital peer production distributed fabrication (makers)
FINANCE
p2p funding p2p payments p2p insurance compl. currencies
GOVERNANCE
SWARM
participatory organizations participatory government blockchain / DAO
CONSUMPTION
redistribution local food systemsproduct-service on-demand services
COLLABORATIVE ECONOMY FRAMEWORK V0.1

19. Banking is essential,
but banks are not.
Bill Gates

20. In just the past few years in Stockholm…
Company Founded Business
Klarna 2005 E-commerce payment services
MyLoan 2006 Loan broker
Trustly 2008 Online payments
iZettle 2010 Mobile payments
FundedByMe 2011 Crowdfunding, crowd equity
Kivra 2011 Digital mailbox
Tink 2012 Personal finance
Safello 2013 Cryptocurrency exchange
KnCMiner 2013 Cryptocurrency mining equipment
Toborrow 2013 P2P lending for companies
Cryex 2014 Cryptocurrency clearing house

21. Stockholm #2 FinTech city in EU
2010-2014 investment
● $532 Mln
2014 investment
● $266 Mln
Top 2014 Investments in
Stockholm FinTech
Companies (USD Mln)
Klarna $125
iZettle $55
Trustly 29
Bima Mobile $22
KNC Miner $14

22. ”Innovative Lending & Investing” emerging
2013 Stockholm FinTech revenue
Cryptocurrency
0%
Transfers
2%
Innovative
Lending
5%
Wealth
Management
9%
Other FinTech
12%
Payments
33%
Trading &
Banking Tech
39%
& Investing
Our report: http://www.slideshare.net/eteigland/stockholm-49722748

25. P2B lending in Sweden

26. Enabling local community?

27. Crowdfunding rapidly growing in Europe

28. Crowdfunding growth 2012-2015
USD 34 bln E

29. Competing for investment?

30. New forms of ownership…crowd equity

31. Democratizing innovation and investment?
 Women in USA
 <30% of business
owners
 <15% of angel investors
 <10% of venture
capitalists
Marom, Robb and Sade 2014
 Women on
Kickstarter
 35% of project leaders
 44% of investors
 Women invested in
women project leaders
(>40% of projects)
VS

32. Using the crowd to identify investment opportunities
Nesta

33. No one knows everything,
everyone knows something,
all knowledge resides in humanity.networks.
Adapted from Lévy 1997Image: Krebs

34. Emerging forms of collaborative investing
Crowd-sourced hedge fund
Activist hedge fund
+

35. Developing investment skills online
https://www.quantopian.com/hom

36. Enabling financial inclusion

37. The Sharing Economy is enabled through
peer-to-peer (P2P) transactions on
multi-sided platforms (MSPs)
http://sloanreview.mit.edu/article/strategic-decisions-for-multisided-platforms/

38. The challenge of ensuring trust
Leap of faith when
meeting strangers ->
Increased trust in
society?
Innovation is forward
looking while
regulations are
backward looking.
http://www.weforum.org/sessions/summary/rise-demand-economy

39. Within 6 years:
Challenging the
fiat money
system?
Bitcoin – An emergent phenomenon
• Open source project on SourceForge in Jan 2009
• Original source code by “Satoshi Nakamoto” – pseudonym?
• Developed by self-organizing community of thousands of
strangers across globe
• Approx USD 5.6 bln market cap and approx 145,000 daily
transactions of USD 75 mln
• 1 BTC = USD 377 (Nov 30, 2015)
Teigland, Yetis, Larsson 2013 http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2263707

40. What is a cryptocurrency?
 Digital
 Decentralized, peer-to-peer (P2P), i.e., no central,
third party
 Uses cryptography to validate/secure transactions
 Also uses cryptography to generate currency itself
 Non-technical explanation of Bitcoin
− https://www.youtube.com/watch?v=t5JGQXCTe3c

41. How does Bitcoin work?
Screenclip from: How Bitcoin Works under the hood, by “Curious Inventor”
Blockchain
• Shared public ledger
• All transactions ever
made logged
• Chronology and
integrity enforced by
cryptography

42. Betting on the Blockchain - Together
Goldman Sachs, JPMorgan,
Credit Suisse, Barclays,
Commonwealth Bank of
Australia,
State Street, RBS, BBVA, UBS,
Nordea, SEB, + ……
+

45. IoT and smart contracts
 Ownership attached to asset/property (e.g., real
estate, shares) and can be verified
 Run on Bitcoin ledger, execute legal rules between
two entities: people, organizations, machines
 Trustless because no center, no one in middle – the
network is the middleman
 Example: I run a private weather station using
neighbors’ sensors. Smart contracts enable payment
to neighbors for data sent from their sensors to my
weather station.
 But time will tell… uses we cannot imagine today.
https://www.youtube.com/watch?v=JsC4ptn2Aik

46. From “trusted”, centralized human authorities
to trustless, decentralized networks
IBM Institute for Business Value (PDF)

47. La’Zooz – Decentralized transportsharing
http://lazooz.org/

48. Enablers of a “true” Collaborative Economy?
Blockchains
Collaborative
Economy
IoT/sensors
P2P/M2M
micropayments
Big data

49. Thomas Jefferson (1816)
“Laws and institutions must go hand in hand
with the progress of the human mind.”
The problem is that the human mind itself
can’t keep pace with the advances that
computers are enabling.
http://wadhwa.com/2014/04/15/mit-technology-review-laws-and-ethics-cant-keep-pace-with-technology/

50. Challenges in the Sharing Economy
 Ensuring trust
− In the platform, other users, products and services,
financial transactions?
 Regulatory
− What is “employment”?
 Security, taxation
− What are new “rules” around “consumption”?
 Taxation, safety, big data and privacy, IP and ownership
 Economic implications
− New pricing mechanisms -> deflation?
− Lower demand for capital in “Zero Marginal Cost
Society”?
− Net effect on labor productivity?

51. Some questions…
• What basic assumptions will no longer hold,
e.g.,centralized, third party verification?
• How will trust be enabled?
• How will new forms of value creation and
investment be regulated?

52. The future is already here,
it’s just not very evenly
distributed.
- William Gibson

53. Robin Teigland
robin.teigland@hhs.se
www.slideshare.net/eteigland
@robin.teigland
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