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Technology Stocks
Peer-to-Peer, Gig and On-Demand Economies
An SI Board Since May 2014
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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:

Airbnb
, 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: https://www.airbnb.com/

Uber, Lyft and Sidecar have created mobile applications that connect passengers with drivers of private vehicles for hire and ridesharing services. Uber website: https://www.uber.com/ Lyft website: https://www.lyft.com/ Sidecar website: https://www.side.cr/

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

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

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: https://www.taskrabbit.com/

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: https://corp.fon.com/en

Poshmark
allows individuals to list the clothing in their closets for resale. Poshmark website: https://poshmark.com/

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: https://www.lendingclub.com/public/personal-loans.action

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: https://www.eatfeastly.com/

NeighborGoods
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: http://neighborgoods.net/
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823Albertsons is laying off employees and replacing them with gig workers, as app pGlenn Petersen-January 7
822A friend of mine posted a video of a delivery vehicle bringing his order from a Kirk ©-January 3
821Autonomous delivery vehicles are already bein deployed. I have actually posted Glenn Petersen-January 3
820They seem intent on speeding the move to having robots do low skill jobs that reKirk ©2January 3
819Uber, Gig Companies Seek Labor Deals to Avoid Workers Becoming Employees Food-dGlenn Petersen-January 3
818Anyone else thinking DoorDash is the perfect company to short? Unemployment surDoren112/10/2020
817A new board devoted to the Airbnb IPO: Airbnb, Inc. | Stock Discussion Forums (Glenn Petersen-12/9/2020
816DoorDash skyrockets 80% in market debut, opening at $182 per share PUBLISHED WEGlenn Petersen-12/9/2020
815DoorDash sells shares at $102 in IPO, pricing above range PUBLISHED TUE, DEC 8 Glenn Petersen-12/8/2020
814You may find yourself chasing it on Friday. Airbnb has always been my favorite Glenn Petersen-12/7/2020
813Airbnb Boosts IPO Price Range to Between $56 and $60 a Share New price range foGlenn Petersen-12/6/2020
812We used airbnb when we drove from NYC to Henderson, NV in 2017. It was a very goRarebird-12/3/2020
811Excellent nutshell analysis. On IPO day my intention is to buy a half of a posirogermci®-12/2/2020
810Today, the idea does not seem so crazy after all. Our more than 4 million hosts Glenn Petersen112/2/2020
809Wonder how much per bed that is?rogermci®-12/1/2020
808Airbnb seeks valuation of up to $35 billion in its IPO PUBLISHED TUE, DEC 1 202Glenn Petersen-12/1/2020
807SEC proposes rules for giving gig workers equity Kia Kokalitcheva Axios NovembeGlenn Petersen-11/25/2020
806Why gig companies should be scared of a Biden administration A divided governmeGlenn Petersen111/21/2020
805Airbnb has filed an S-1. The registration statement: sec.gov Airbnb files to gGlenn Petersen-11/16/2020
804The DoorDash registration statement: sec.gov DoorDash releases filing to go pubGlenn Petersen-11/13/2020
803DoorDash and Instacart face brighter IPO prospects after ballot victory in CalifGlenn Petersen-11/5/2020
802Uber, Lyft Win California Bid to Keep Drivers as Contractors By Ellen Huet BloGlenn Petersen111/4/2020
801Uber and Lyft rise as investors expect California voters to pass Prop 22 PUBLISGlenn Petersen-11/2/2020
800Thoughts on On-Demand Economics in the supply chain / logistics space? Like -- Following-Mr.Pink-10/19/2020
799Why millions of freelancers fear a Biden presidency may put them out of work PUGlenn Petersen110/17/2020
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