Shareable Cities: The power of the collaborative economy

Imagine a shareable city. What does it look like? Or are you asking: “What is a shareable city?” 
 
c/o @RedefiningTO

c/o @RedefiningTO

The concept of shareable cities is a compelling interest of Cities for People, a new Canada-wide initiative that launched this month and is designed to make our cities more resilient. This month, Cities for People and Social Innovation Generation (SiG) co-hosted a national speaking tour featuring April Rinne, chief strategy officer of Collaborative Lab, and her approach to building shareable cities.

On February 11, April made her Toronto stop at MaRS in partnership with MaRS Global Leadership and SiG’s Inspiring Action for Social Impact Series. Her message was poignant and clear: opportunities abound to build more shareable and sustainable cities through the collaborative economy.

It’s time to seize these opportunities by “connecting dots, catalyzing ideas and building networks.”

(Dot 1) Learn

We must explore and engage in the collaborative economy, the space where the capacities, ideas, businesses, actions and policies for building resilient cities are fermenting and scaling. The collaborative economy includes all types of collaborative practice:

(Dot 2) Embrace the shift

These practices leverage a major values shift from the burdens of ownership to the value of access that enables and requires a reimagining of our lifestyles, communities and marketplaces.

c/o @rwr3peat

c/o @rwr3peat

(Dot 3) It’s all about sharing

Valuing access prompts sharing assets and finding opportunities in idle capacity: all of our possessions (commercial or personal) that are underused or locked up by our proprietary ideals. Sharing unlocks wealth and value for our communities and ourselves, creating a sharing economy based on using existing assets more sustainably.

(Dot 4) Connect needs with haves

When we think about how to match what we already have to what someone else needs more efficiently, new marketplaces and community connections are born and for innumerable reasons.

  • Savings and sustainability: An average car costs more than $700 per month, yet sits idle 23 hours a day. Why not create access to a pool of cars, optimizing their use and reducing costs and wasted resources? Enter Zipcar.
  • Exercise and community: Channel your passion for running to benefit your community by running to someone’s house to help them out – they call it GoodGym.
  • Pet therapy and animal rights: Pets are left at home for hours during the day, while plenty of people want to play with or take care of your pet. What if you could connect? Yes, please BorrowMyDoggy.

(Dot 5) Know the drivers

What’s common to these examples is their technology-enabled scale and scope, the defining characteristic of the collaborative economy. Three other key drivers are fuelling and powering this transformative trend:

  1. A great power and trust shift away from centralized institutions toward networks of individuals and a human-centred peer revolution.
  2. Economic realities remind us that “business as usual” can no longer be the status quo.
  3. Environmental pressures and population growth demand that we transform how we see our habits, our businesses and our communities.
( )Connecting the dots( ): Powering a sustainable future and shareable cities
c/o @Lewwwk

c/o @Lewwwk

Collaborative platforms reimagine how we approach sustainability by transforming existing value chains and inspiring us to see abundance and opportunity, instead of scarcity, in the untapped capacity all around us. Cities can become meaningful enablers of the collaborative economy and platforms for sharing themselves, unlocking idle capacity at city hall and on our city streets. Municipal governments must jump in as regulators and service providers and consider the following questions: How can we enable these collaborative economy innovations? How are they helping us to transform our service provision for communities? Who aren’t we reaching?

These are the types of questions that Cities for People and April Rinne intend to provoke and help answer. You can watch her lecture in full below.

How shareable can we be?
  • The top 10 ways cities can become more shareable
  • See what’s happening in the Toronto collaborative economy: check out the Toronto Sharing Map

This post was originally published on the MaRS Blog on February 28th, 2014. 

The Sharing Economy: It’s more than we think

do you like to share-There is a good chance that you’ve heard about “The Sharing Economy”.  It’s drawing attention because of innovations such as peer-to-peer sharing among neighbours including tool libraries and business-to-consumer enterprises including AirBnB.  Instead of keeping our focus here, we can widen our view and find an entire universe of social innovations.  These innovations have the potential to connect us to each other, lessen our impact on the Earth, and experiment with new business models.

Sharing has always been a part of city life including through libraries, community spaces, guilds, and civic structures. In the past decade, there has been a revival and acceleration in sharing innovations across sectors from mobility (Bixie Bikes, Coop Cars) to accommodation (AirBnB, coachsurfing) to skills (TaskRabbit). Businesses are sharing idle supply chain capacity and joining forces in collective institutional purchasing, and community-based grassroots innovators are creating neighbourhood community time banks and clothing swaps.

“Sharing cars, books, tools can also be expanded to shared, community-owned energy; shared 3D printing facilities; and communal office spaces. Shared ideas, green space, seeds, air, and water have been with us since we set foot on the earth but need protecting.”
– Mike Childs1

“The sharing economy can be manifest in almost every sector of society and corner of the globe. Sectors which have experienced robust traction and interest include accommodation, transportation, tourism, office space, financial services and retail products. Areas where significant growth is expected include [peer to peer] P2P car sharing, ridesharing, errand marketplaces, P2P and social lending, and product rental.”
– Young Global Leaders Sharing Economy Working Group2

Also known as collaborative consumption and the collaborative economy, the Sharing Economy is the bartering, exchanging, sharing, renting, trading, borrowing, lending, leasing and swapping of goods, services, time, capital, experiences and space by individuals, institutions, businesses and communities.  This is all being supported by new mobile and digital technologies and online platforms that redistribute and enable transactions based on trust and reciprocity. It is motivated by the realities of the economic crisis and financial hardship, growing urbanization, resource and energy constraints, and inequitable access to resources.3

swap_peers

Clothing swap hosted by sharing community, peers.org

There are opportunities to unlock idling capacity – the untapped social, economic, and environmental value of underutilized assets.  For some this is heralded as indicative of a changing relationship with material possessions and a rejection of mass consumption through a shift from ownership to access; however, others question whether the mainstream is willing to make this shift. What we do know is that when a community shares more, it consumes less material and energy.  The purchase of one 10 pound circular saw at the Vancouver Tool Library is estimated to have prevented up to 320 pounds of waste.  Although as Rachel Botsman notes, the Sharing Economy Lacks A Shared Definition, its promise lies in the possibility of reductions and more efficient use of resources and untapped and idle capacities, opportunities for local and inclusive economies, and greater social connectivity and trust.

Though the Sharing Economy holds much promise for creating social innovations, it’s important to consider who is benefitting from these new models of sharing. The successful growth of sharing businesses like Airbnb and Lyft clearly indicate the economic value of the movement. What is less understood is the social benefits that are created by the Sharing Economy for vulnerable populations. One of the greatest aspirations of the Collaborative Economy is to form a more inclusive society. Monitoring the impacts of sharing on low-income groups can help realize this vision.

An Expanding Universe of Sharing

 “‘Sharing and shareability’ are typically too narrowly conceived and perceived. The opportunity is so much greater than middle-class ‘swishing’ and even though urban bike-sharing schemes have dominated news in this space, whether in London, Copenhagen, Paris or Montreal, or Rio, Guadalajara (México), Buenos Aires, or Providencia (Chile), sharing is definitely about much more than ‘bums on bikes.’”
– Julian Agyeman, Duncan McLaren and Adrianne Schaefer-Borrego4

We are missing some key aspects of the Collaborative and the Sharing Economy such as business to business sharing, informal sharing among immigrant, isolated or marginalized communities, and activities in unexpected sectors such as within the arts.

So how can we widen our view?  We can explore the what, who and how of the sharing economy:

  • WHAT

    The universe of sharing crosses many areas of our lives including transportation, food, space, funding, and goods.  It’s quite different if we are sharing things (books, cars, art), services (rides, child care, time) or experiences (skill sharing). There are also varying types of ownership – some sharing innovations are public, some private and others are cooperative.

  • WHO

    Most attention has been on individual peer-to-peer sharing (e.g., bartering networks like Swapsity.ca) and business to consumer enterprises (e.g., Zipcar).  Sharing is also taking place among businesses (e.g., Liquidspace and horizontal collaboration across supply chains) and within communities (e.g., Tool Libraries, Cooperatives). We can also explore the diversity of networks emerging to support sharing innovators (Shareable.net, Collaborative Lab, Peers).

  • HOW

    The way we share also varies from money exchanges to non-monetized transactions, formal and informal innovations, and socially connected and more impersonal interactions.

By broadening our definition, it is possible to spark entrepreneurship and social innovation, to anticipate negative reactions and impacts, and to create a more nuanced and vibrant understanding of the Sharing Economy.  This, in turn, can guide the development of pilots, activities and supportive structures and policies.

From 10 – 14 February, I’m traveling with April Rinne, Chief Strategy Officer, Collaborative Lab and Tim Draimin, Executive Director, SiG National across Canada on a collaborative economy tour, co-sponsored by SiG and Cities for People.  Join in Montreal, Toronto, Calgary or Vancouver and tell us how you see the Sharing Economy!

 


1 Mike Childs (2013) The Power of Sharing: A Call to Action for Environmentalists. 5 November.

2 Young Global Leaders Working Group (2013) Circular Economy Innovation and New Business Models Initiative. Position Paper: World Economic Forum Young Global Leaders Taskforce.

3 Resources: Rachel Botsman and Roo Rogers (2012) What’s Mine is Yours; Lisa Gansky (2010) The Mesh: Why the Future of Business is Sharing; The Sharing Project Bryan Walsh 10 Ideas That Will Change the World: Today’s Smart Choice: Don’t Own. Share. Time Magazine, 17 March 2011. http://content.time.com/time/specials/packages/article/0,28804,2059521_2059717_2059710,00.html

4 Julian Agyeman, Duncan McLaren and Adrianne Schaefer-Borrego (2013) Briefing: Sharing Cities. Written for Friends of the Earth’s “Big Ideas” project, September.

Taking the Seoul Train to the Sharing Economy Part III

Editor’s Note: The Sharing Economy is about a profound shift in consumer values from ownership to access. Together, entire communities and cities around the world are using network technologies to do more with less by renting, lending, swapping, bartering, gifting and sharing products on a scale never before possible. A wide variety of sharers are involved, from Tool Libraries and Maker Faires through to Car-shares and the open government movement. Organizations like Collaborative ConsumptionPeers and Shareable are working to foster the sharing economy. SiG believes that this movement is a force for social innovation and systems change. In this spirit, SiG will produce blogs and grow a knowledge base highlighting the people and concepts emerging out of the sharing economy.

Seoul LandscapeWith robust government support, South Korea is fast becoming one of the world’s most advanced sharing economies. In the course of one day criss-crossing Seoul’s vast metropolitan area by efficient public transit, I was able to visit three very different new sharing economy ventures that boast stories illustrating the value of the new national and municipal policies facilitating the growth of the sharing economy. Part I and II blogs highlighted my visit to Dream Bank and My Real Trip. In this final post on South Korea’s sharing economy, I offer my experience visiting Kozaza.

Kozaza

From suburban Pan-gyo, we headed by express bus to Bukchon, a unique neighbourhood “village” of Seoul that is peppered with royal palaces and shrines and a large number of Hanok traditional-style Korean houses. There we met Sanku Jo, a serial entrepreneur whose passion for protecting the Hanok heritage led him to start Kozaza.

KozazaKozaza is an online service that connects travellers with a trusted community of families offering unique accommodations throughout Korea. Kozaza sees its service built on the values of the sharing economy. Its social benefits are multiple: providing host families with a new source of income; assisting a city like Seoul to expand tourism without having to worry about its relatively limited stock of hotel beds; making it possible for people to share their homes, and increasing exposure to Korean culture and food.  Finally, with its current focus on shared Hanok accommodation, Korea’s slowly disappearing traditional houses, Kozaza hopes to rekindle interest and promote conservation of this increasingly scarce cultural resource.

As a start-up, Kozaza benefitted from a program of the national government that provided a 50% match on privately raised start-up funds. The Mayor of Seoul, Park Won-Soon, has also been an enthusiastic supporter. He personally stayed at Kozaza Hanok providing moral encouragement for Kozaza and what they do. In addition Seoul’s Sharing City program has promoted Kozaza by publicizing the service through city owned media platforms.

Kozazateam

The Kozaza team with Canadian guests

Kozaza’s founder and CEO, SanKu Jo, combined his love for Korea’s traditional Hanok homes with his commitment to the sharing economy. He visualizes the sharing economy as portending the shift from Web 2.0 to Life 2.0. For him, the sharing economy offers cost savings, improved environmental stewardship, and social capital building as people share their homes and culture. Sanku Jo thinks Kozaza has reinvented Airbnb to create a “Life Sharing Platform”. Going further, he thinks of “sharing as the new communication”. Sanku Jo, a student of the internet, spent over a decade in California’s Silicon Valley, is using SlideShare to share compelling resources on his vision of where the sharing economy is headed.

D.Camp, My Real Trip, and Kozaza all have analogues that sprang up earlier in other countries. Notwithstanding that, each of them has evolved a unique model reflecting the specific needs and culture of Seoul and Korea in order to create a valuable sharing economy offering. Good ideas, whether new or not, are quick to travel and just as quick to be adapted and improved.

IMG_2463Note: Thanks very much to April Rinne, from The Collaborative Lab, who introduced me to two Seoul members of TCL’s Global Curator Team, DaYe (Diane) Jung and Seokwon (ejang) Yang. They in turn connected me with our indispensable guide Seokjoon Choi. Seokjoon navigated us through Seoul with great aplomb.

Taking the Seoul Train to the Sharing Economy Part II

Editor’s Note: The Sharing Economy is about a profound shift in consumer values from ownership to access. Together, entire communities and cities around the world are using network technologies to do more with less by renting, lending, swapping, bartering, gifting and sharing products on a scale never before possible. A wide variety of sharers are involved, from Tool Libraries and Maker Faires through to Car-shares and the open government movement. Organizations like Collaborative ConsumptionPeers and Shareable are working to foster the sharing economy. SiG believes that this movement is a force for social innovation and systems change. In this spirit, SiG will produce blogs and grow a knowledge base highlighting the people and concepts emerging out of the sharing economy.

 

pan-gyo3Seoul is earning a reputation as one of the world’s most developed sharing economies. South Korean citizens and civil servants support the development of the sharing economy because it addresses issues inherent in high-density cities like overpopulation and housing shortages. In the course of one day criss-crossing Seoul’s vast metropolitan area by efficient public transit, I was able to visit three very different new sharing economy ventures that boast stories illustrating the value of the new national and municipal policies enabling the sharing economy. In Part I, I outlined the enabling government environment and my visit to Dream Bank. The second sharing economy venture, My Real Trip, is featured in this post and Kozaza will follow in Part III.

 

IMG_2435

My Real Trip

Having the benefit of an extensive and spectacularly well-organized subway system (the second most used in the world), I was able to travel rapidly many miles out to the new suburban innovation hub in Pan-gyo from the Seoul city center. Referred to as Pan-gyo Techno Valley (PTV), it is Korea’s bespoke answer to Silicon Valley. The government has facilitated the construction of block after block of gleaming new office towers, which by 2015 will support a population of 80,000 people and house the country’s leading hi tech ventures.

 

pan-gyo

Pan-gyo Techno Valley

pan-gyo4

Korea’s Silicon Valley

 

I visited the brand new tower of NEOWIZ, a successful gaming company that is creating an incubation environment for new start-up technology ventures. There we met the co-founder of My Real Trip, Donggun Lee, a serial entrepreneur whose first venture was a successful crowdfunding platform.

My Real Trip, similar to Peek (an online portal connecting travellers to local curated travel experiences), allows Korean-speaking travellers access to a global network of guides in 130 cities around the world. Geared to the cultural interests of Asian travellers, a local actor in New York might act as a guide for a Broadway tour. Elsewhere, a guide in Vancouver provides a Caffeine Crawl of that city’s unique and diverse scene of coffee shops.

My Real Trip creates income opportunities for part-time guides and full-time guides allowing the guides to set their own rate and retain more income than they would if employed by a mainstream touring company.

 

MRT

Visiting My Real Trip Team

 

My Real Trip is in rapid growth mode, having started in mid-2012 it has already supported 5,800 travellers in 123 cities. It expects to reach 10,000 by the end of 2013. My Real Trip benefitted from six months free rent in the NEOWIZ tower ecosystem before becoming a paying tenant.

The emerging global network of sharing cities is accelerating people’s ability to ingeniously adapt to new forms of urban living while at the same time reducing their environmental footprint. Stay tuned for part III’s train to Kozaza sharing economy venture.

 

IMG_2463Note: Thanks very much to April Rinne, from The Collaborative Lab, who introduced me to two Seoul members of TCL’s Global Curator Team, DaYe (Diane) Jung and Seokwon (ejang) Yang. They in turn connected me with our indispensable guide Seokjoon Choi. Seokjoon navigated us through Seoul with great aplomb.

Taking the Seoul Train to the Sharing Economy Part I

Editor’s Note: The Sharing Economy is about a profound shift in consumer values from ownership to access. Together, entire communities and cities around the world are using network technologies to do more with less by renting, lending, swapping, bartering, gifting and sharing products on a scale never before possible. A wide variety of sharers are involved, from Tool Libraries and Maker Faires through to Car-shares and the open government movement. Organizations like Collaborative ConsumptionPeers and Shareable are working to foster the sharing economy. SiG believes that this movement is a force for social innovation and systems change. In this spirit, SiG will produce blogs and grow a knowledge base highlighting the people and concepts emerging out of the sharing economy.

 

IMG_2449Seoul is gaining recognition as one of the world’s most developed sharing economies.  Accounting for half of South Korea’s 50 million people, Seoul has become a unique launch pad, with the Mayor of Seoul, Park Won-Soon, working hard to promote the broader agenda of social innovation:

 

“As the mayor of Seoul, I have striven to create innovative ways of governing that are based on cooperation and collaboration. I have made a point of soliciting greater citizen input and getting citizens more directly involved in decision-making, fostering social enterprises that use innovative approaches to tackle social problems, and expanding collaboration between government, the market, and civil society.” (SSIR Summer 2013 insert Innovation for a Complex World entitled Forging Ahead with Cross-Sector Innovations)

 

Specifically, in 2012 Mayor Park created the Sharing City initiative as part of the Seoul Innovation Bureau’s goal to tackle social, economic and environmental problems in innovative ways. The city is supporting the start-up of new sharing companies and pioneering its own sharing programs (e.g. those range from making city facilities available in off-hours, to a car sharing service, and a program matching seniors who have a spare room with students needing accommodation.)

IMG_2441

Seoul City Hall

The national government of President Park Geun-hye (no relation to Park Won-Soon) has a signature policy to catalyse the “creative economy”. The Korea Herald summarises its goal as “creating new business opportunities, industries and jobs through the fusion of information and communication technology, culture and others realms.” President Park says the existing economic model cannot address high unemployment and widening economic inequalities.

By taking a day just before the start of Social Innovation Exchange’s 2013 Summer School in Seoul, I had a chance — together with Michael Lewkowitz, the founder of socialsca.pe — to visit several exciting sharing economy start-ups: Dream Bank, My Real Trip and Kozaza. Each boasts stories that illustrate the value of the new national and municipal policies enabling the sharing economy.

Dream Bank

In 2012, twenty South Korean banks came together, pooling nearly $75 million, to create and fund Dream Bank, a new foundation.  It was born out d.camp3of the preoccupation that current tough economic times meant that the economy was unable to generate sufficient employment opportunities, especially for young graduates entering the labour market. Dream Bank explains that it “was formed in order to nurture a successful startup community and consequently create high quality jobs through emerging enterprises.” In fact, Dream Bank hopes to help South Korea become Asia’s number one hub for the new economy.

D-CAMP LogoAs a first step, Dream Bank set up D.Camp in 2013 in Central Seoul (facing the spectacular Seolleung Park — a UNESCO World Heritage Site of two Royal Tombs). D.Camp is a 1,650 square metre, multi-storey, co-working space for young entrepreneurs. Those preparing to launch a new venture receive three months free rent and stay longer if they have made progress on their venture. Besides providing state of the art co-working space and dozens of monthly curated networking and educational opportunities in their large hall, D.Camp is also developing an online financing platform to connect ventures with investors. D.Camp is both a sharing economy platform and seeks to help strengthen ventures that feature collaboration and sharing business models. Dream Bank’s start-up Operation Manager, Seokwon (a.k.a. ejang) Yang who previously founded the co-working space CO-UP, is a well-known leader in the sharing economy space and a member of The Collaborative Lab’s Global Curator team.

d.camp2

D.Camp co-working space

Following my exploration of D.Camp, I made my way to another inventive sharing economy venture, My Real Trip, which will be featured in part II of this series on Seoul’s Sharing Economy.

In a field of rapid innovation, public policy can either slow the advance of disruptive innovations (e.g. New York City fining Airbnb) or help them take root and evolve like Seoul is doing. The sharing economy appears headed to become the most impactful vector for scaling social innovation in urban settings.

Author’s Note: Thanks very much to April Rinne, from The Collaborative Lab (TCL), who introduced me to two Seoul members of TCL’s Global Curator Team, DaYe (Diane) Jung and Seokwon (ejang) Yang. They in turn connected me with our indispensable guide Seokjoon Choi. Seokjoon navigated us through Seoul with great aplomb.