Jeremy Owyang, an industry analyst that works for the Altimeter Group and avid blogger, has an interesting open letter to brands on his blog.
Jeremy outlines the shift that has led him, like many other consumers, to change from actually buying stuff to simply purchasing subscriptions or using services who’s offering is based on technology enabling the sharing economy movement.
Whilst he speaks of his holidays through AirBnB, his occasional rides on Uber, his renting out of his spare car through RelayRide and Liquidspace to rent office space on demand, you begin to see that this pattern has evolved in the last few years.
Great to see that many of the selected Apps here at the Lisbon BIG Apps, that have gone through to the development phase, compete in this new environment, a new paradigm shift where collaborative consumption has made everything and anything possible.
More great news for app developers as research now shows that VCs have doubled down in this market. These startups are receiving more and more investment as the sharing economy scales and goes global. It may be a result of easier and better access to the Internet, especially mobile, but it is also a reaction to the financial crisis that has led many to reassess their priorities.
The effects are being seen not only B2C but also B2B as companies wise up to the costs, and many times lack of flexibility that comes with ownership of stuff. As technology promotes change in behaviours, companies have come to realise that they need to be able to react.
Altimeter analyzed 200 global Sharing Economy startups and found that VCs had funded 37% of them. Of those 74 companies, they’d been funded an average of $28 million US dollars. The category has received funding of over $2 billion in just a few short years.
Altimeter also found that out of the 200 startups, 68% were focused on enabling individuals in redistributing their owned goods or services; consumers trading, lending, or renting products to each other.
Furthermore, 22% of the sample market enabled C2C trading or gifting. Lastly, only 14% of the startups were enabling companies to share products and services – a real opportunity for newcomers.
As the 15 apps that have gone through to development in the Lisbon BIG Apps competition, work to produce their best possible solution, visit their different pages and find out how they are working up to the last hurdle – final selection on the 24th of June. If you see something you like, give them your vote of confidence – it’s free and will no doubt motivate them further.