We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks
Peer-to-Peer, Gig and On-Demand Economies
An SI Board Since May 2014
Posts SubjectMarks Bans
852 36 0
Emcee:  Glenn Petersen Type:  Moderated
One of the most significant economic developments of the last decade has been the emergence of the sharing economy, a new category of business in which individuals rent their private property (beds, cars and other underused assets) and spare time to individuals who are more often than not complete strangers. The transactions are generally done on a peer-to-peer basis, often facilitated by mobile phone apps.

A subset of the sharing economy is collaborative consumption, a class of economic arrangements in which participants share access to products or services, rather than having individual ownership.

The sharing economy allows individuals to turn their “dead capital” into valuable commercial assets.

The element of trust is important and many of the sharing economy companies have developed elaborate systems to vet and monitor both the individuals providing access to their personal assets and time and the customers paying for the use of those assets and services.

Much of the work on these systems was pioneered by eBay. In a Wired Magazine article by Jason Tanz, Mr. Tanz noted that in the late nineteenth century businesses developed sophisticated centralized systems of codified safeguards to protect both customers and businesses. Mr. Tanz went on to note that, But the problem with institutionalized trust is that it can be, in tech industry parlance, a high-friction affair. eBay couldn’t require everyone with a few extra Beanie Babies to go through the regulatory rigmarole of establishing themselves as a licensed shopkeeper. So over several years, Chesnut’s team built its own trust infrastructure. It began monitoring the activity across the eBay marketplace, flagging potentially problematic sellers or buyers, providing its own payment options, and eventually guaranteeing every purchase. In so doing, eBay evolved from a passive host to an active participant in every transaction. Like the explosion of institutional banking and insurance in the early 20th century, this new system acted as a trust proxy; it didn’t require people to trust one another, because they could rely on a centralized system to protect their interests.

Introducing people to one another may encourage them to behave better—it may reduce insurance payouts and help a company’s bottom line. But it also makes for a radically different experience than we’ve come to expect from our service economy. In my conversations with Lyft riders and drivers, practically everyone said some version of the following: “I like dealing with real people.” Of course, the licensed cabbie is a real person. So is the bellhop, the line cook, the kennel owner. But when we interact with them, they are operating as agents of a commercial enterprise. In the sharing economy, the commerce feels almost secondary, an afterthought to the human connection that undergirds the entire experience. (This is due in part to the fact that the payment itself so often happens electronically and invisibly.) In this way, it suggests a return to pre-industrial society, when our relationships and identities—social capital, to use the lingo—mattered just as much as the financial capital we had to spend.

That’s the carrot side of a more intimate economy, the idea that treating people well will result in a better experience. There is a stick side as well: Act badly and you’ll be barred from participating.’

Elements of the sharing economy have been aggressively resisted in certain cities by entrenched legacy interests (particularly in the hotel and taxi industries).The sharing economy is one of the great unforeseen benefits of the digital age. Cities should not ban it but welcome it.

Examples of companies involved in the sharing economy include:

, which was recently valued at $10 billion and is the poster child for the sharing economy, allows travelers to rent a room or a whole home from a private individual. Airbnb website:

Uber, Lyft and Sidecar have created mobile applications that connect passengers with drivers of private vehicles for hire and ridesharing services. Uber website: Lyft website: Sidecar website:

DogVacay allows dog owners to place their digs with host families in lieu of the dogs being boarded in a kennel. DogVacay website:

Chegg specializes in online textbook rentals (both in physical and digital formats). Chegg website:

TaskRabbit is a marketplace for people to hire people to do jobs and tasks, from delivery, to handyman to office help. Founded in 2008, the site has 4,000 Taskrabbits on the service nationwide who bid to do tasks that are posted by people looking for a service. All the "rabbits" are interviewed and have their backgrounds checked before going on the system. TaskRabbit website:

Fon operates a system of dual access wireless networks. Members agree to share a part of their bandwidth as a Wi-Fi signal, so that they can connect to other members' hotspots. Consumers who choose not to share their Internet connection can buy Wi-Fi access passes or credit from Fon. Fon members whose hotspots are used to access Wi-Fi by a paying customer can receive part of the revenue. Fon website:

allows individuals to list the clothing in their closets for resale. Poshmark website:

Lending Club
is the world's largest peer-to-peer lending platform. It was the first peer-to-peer lender to register its offerings as securities with the SEC and to offer loan trading on a secondary market.. As of November 2013, the platform has originated over 3 billion USD in loans, and averages $7.8 million in daily loan originations. Lending Club website:

Feastly is an online marketplace connecting passionate cooks with hungry eaters to offer homemade meals and food experiences prepared and served in a cook’s home, but not limited to – think inventive warehouse spaces, rooftops, store pop-ups and more; we’re indie meals and social dining at its best. Feastly website:

is the leading social platform for peer-to-peer borrowing and lending. Need a ladder? Borrow it from your neighbor. Have a bike collecting dust in your closet? Lend it out and make a new friend. By sharing with your neighbors, you can save money while reducing waste and strengthen your local community in the process. NeighborGoods website:
Previous 25 | Next 25 | View Recent | Post Message
Go to reply# or date (mm/dd/yy):
ReplyMessage PreviewFromRecsPosted
852Disrupting the disruptors: Braintrust is putting the freelance job market on tGlenn Petersen1last Monday
851h/t Juli\ys Wong More Americans are taking jobs without employer benefits like Glenn Petersen-September 7
850California Ballot Measure That Classifies Uber, Lyft Drivers as Independent RuleGlenn Petersen-August 21
849Gig economy companies are having to spend more than ever to find hosts and driveGlenn Petersen-August 13
848DoorDash held talks to buy Instacart- The Information By Reuters Staff Aug 11 Glenn Petersen-August 12
847Groceries in 10 Minutes: Delivery Start-Ups Crowd City Streets Across Globe NewGlenn Petersen-July 27
846An ‘Airbnb for Pools’ Is Making a Splash This Summer Swimply reports surge in dGlenn Petersen-July 21
845A Worker-Owned Cooperative Tries to Compete With Uber and Lyft New York Times MGlenn Petersen-May 29
844A very vibrant peer-to-peer "economy" is thriving on Facebook: Buy NoGlenn Petersen-May 9
843Uber seeks to reassure investors over rising US regulatory threat Ride-share gGlenn Petersen-May 6
842Uber, Lyft, DoorDash stocks fall sharply after U.S. Labor secretary says gig worGlenn Petersen-April 29
841Ghost Kitchens Will Keep Appearing on Your Delivery App, Even as the Pandemic EaGlenn Petersen-April 3
840 Uber shares +5% after both Jefferies and Wolfe Research initiated with Buy/Outprogermci®-April 1
839Amazon-backed Deliveroo tanks in London market debut PUBLISHED WED, MAR 31 2021Glenn Petersen-March 31
838That would be sweet. Thanks. A lot of chart set ups look good and you have a krogermci®-March 15
837If I am right and UBER is about to take off in its strongest wave, $85 will be tRarebird-March 15
836Amazon-backed Deliveroo aims to raise $1.4 billion in upcoming IPO PUBLISHED MOGlenn Petersen-March 15
835How dare they not want to be rescued Natalie Solent (Essex) Two days ago the BBTimF1March 8
834Exclusive: Instacart mulls direct listing in snub to IPOs - sources By Joshua Glenn Petersen-March 5
833LYFT just raised Q1 EBITDA forecast. The company attributes the improvement in rogermci®1March 2
832I have no reason to doubt you. Your track record on calls is very good.rogermci®-March 1
831Uber has bottomed and is headed to 90+.Rarebird-March 1
830Can you imagine if the post office, FedEx or UPS charged for delivery based on tKirk ©-February 22
829The pressure domestically is only going to increase under the Biden administratiGlenn Petersen-February 22
828Deliveries are going to remain a tough business for both the restaurants and theGlenn Petersen-February 22
Previous 25 | Next 25 | View Recent | Post Message
Go to reply# or date (mm/dd/yy):