Peers Inc

What if we could consume less, spend smarter, and reduce our environmental impact – all by embracing the power of sharing?

1. Sharing Platforms Unlock Idle Resources

The concept of excess capacity forms the heart of the sharing economy. This refers to resources that remain unused for significant stretches of time – such as spare rooms, tools, or cars. Instead of letting these resources sit idle, sharing platforms create opportunities to use them efficiently.

Take car ownership as an example. While cars are an essential mode of transport for many, they spend most of their time parked. Beyond the environmental toll, personal vehicle ownership comes with insurance, maintenance, and parking costs. Platforms like Zipcar or Uber offer alternatives by leveraging these idle vehicles, making them available to others for short-term use or rides.

The challenge lies in creating the right platform. Sharing happens regardless, but platforms make it structured and convenient. Without tools like schedules, reviews, and availability tracking, borrowing a car could be frustrating or unreliable. Platforms fill this gap by streamlining access and ensuring consistent value across users.

Examples

• Zipcar pioneered short-term car rentals by organizing fleets that users can book easily.
• Airbnb allows homeowners to rent unused rooms, maximizing the utility of their properties.
• Tool libraries are emerging, letting individuals borrow appliances instead of purchasing new ones.

2. Gradual Scaling Prevents Overloading

Launching a sharing platform requires careful scaling to avoid chaos. If too many users join too quickly, it becomes impossible to manage quality, curb exploitation, or address issues effectively. A phased roll-out creates room for learning and adjusting.

eBay's evolution is a case in point. Initially, sellers on the platform simply listed items without using reviews or ratings. Over time, eBay adopted features such as seller feedback, encouraging higher standards and smoother transactions. Similarly, services like Airbnb eventually updated their policies to guard against misuse, including suspending listings from real-estate professionals misusing the platform.

Controlled growth also provides insight into harmful patterns, such as the rise of “power players” – users who exploit a weak system. Effective scaling allows for necessary adjustments before these abuses become widespread.

Examples

• eBay introduced ratings after observing quality issues with sellers early on.
• Airbnb removed professional property listings to maintain platform integrity.
• Beta-testing new software with a select user base helps refine features before public release.

3. Diverse Funding Models Serve Different Aims

Funding is a critical decision when launching peer-sharing platforms, as it shapes the priorities and independence of the venture. Entrepreneurs can choose between private funding, public financing, or crowdfunding, depending on their goals.

Private funding often requires prioritizing shareholder value, potentially compromising the original mission. For instance, Github maintained control by eschewing private investors for four years, avoiding external pressure. Meanwhile, public funding works well for projects tied to utilities – like taxpayer-funded systems for GPS and internet development.

Crowdfunding stands out for its flexibility. By raising small amounts from many contributors, platforms like Kickstarter empower creators to maintain control while securing funds. Caroline Woolard’s Trade School, for example, used crowdfunding to launch free, peer-driven classes across various subjects.

Examples

• Github prioritized independent decision-making by delaying private funding.
• GPS and internet services became accessible to all through public-sector investment.
• Trade School raised funds via Kickstarter to create a free, shared education model in NYC.

4. Governments Can Nurture Platforms Through Infrastructure

Governments play a big role in supporting or inadvertently inspiring peer platforms. By investing in programs like GPS or creating heavily regulated industries, public bodies lay the groundwork for new ventures.

GPS, originally restricted to military use, was released for public access after a tragic airplane incident highlighted the importance of global navigation. Today, this public investment supports countless platforms, from Uber to fitness apps. Additionally, heavy taxi regulations in cities like London – requiring cabbies to pass rigorous tests – opened doors for Uber to present a simpler model.

While government regulations may seem obstructive in some cases, they also enable creative solutions and competition, often catalyzing innovation within the sharing economy.

Examples

• GPS was first introduced for public use by the U.S. government as a peer tool.
• Stringent London taxi rules contributed to Uber’s entry as a convenient alternative.
• WiFi and internet infrastructure stemmed from public-sector innovation.

5. Collaboration Is Not Just for Startups

Large, established companies are also turning to collaborative strategies. Engaging peer networks helps businesses foster innovation, gain insight, and stay competitive in an economy leaning toward sharing.

Retail giant Sainsbury's opened its sustainability plans for peer reviews by 155 experts, even inviting competitors to participate. Meanwhile, Castorama, a French home-improvement chain, created an online community where employees and customers shared skills and advice. These initiatives deepen engagement, strengthen brand loyalty, and foster value.

Deloitte’s research on the 500 most valuable U.S. companies shows a clear advantage: collaborative companies significantly outpace non-collaborative ones in value. By building platforms where peers can interact, businesses unlock new avenues for growth.

Examples

• Sainsbury's invited external experts to evaluate its sustainability goals.
• Castorama launched a skill-sharing community connecting craftspeople and customers.
• Deloitte found that companies categorized as “Network Orchestrators” outperformed others greatly.

6. Sharing Solutions Can Address Climate Change

The world’s biggest challenge – combating climate change – requires collaboration and creativity. Sharing platforms can greatly decrease waste and emissions by optimizing resource use.

Nirmal Kumar’s G-Auto service in India connects rickshaw drivers with customers, cutting down on cruising and reducing CO2 emissions. Similarly, community-supported agricultural platforms optimize food distribution, limiting waste in the farming sector. By rethinking areas like public transportation and energy, peer models can drive us closer to zero-emissions goals.

Peer networks also bring together diverse voices to solve problems collectively. Global challenges need systemic efforts, and platforms present the perfect structure for tackling climate issues collaboratively.

Examples

• G-Auto reduced emissions in India’s transportation sector through smarter rickshaw use.
• Community-supported farms help ensure sustainable, efficient food distribution.
• Renewable energy grids increasingly rely on peer contributions, like solar panel sharing.

Takeaways

1. Build sharing platforms by identifying untapped resources and designing user-friendly access systems.
2. Scale gradually to learn from user behavior and respond to emerging challenges effectively.
3. Embrace the sharing economy across industries and lifestyles to promote sustainability and innovation.