B2B sharing economy, threat or opportunity for you?

Are you already familiar with the sharing economy? Have you ever shared your home through AirBnB, tools through Peerby, booked a car via Car2Go (now ShareNow) or a taxi through Uber? Consumers increasingly realize that ‘having access to’ is almost as valuable as ownership. Why buy something when you can borrow or rent it (for a fraction of the price)?

Marktplaats already made everyone a retailer, but with apps like AirBnB you might soon become a hotelier. The line between private individuals doing business with each other (C2C, consumer-to-consumer, e.g. via Marktplaats) and companies selling something is becoming increasingly blurred. The hotel and taxi industries mainly see the sharing economy as a threat and try to stop this development through laws and regulations. But wouldn’t it be better for them to look at the opportunities? We are currently focusing on what the B2B sharing economy can mean for companies doing business with other companies (B2B, business-to-business). We discuss the causes of this development, share some articles to learn more, and mention some possible consequences for the B2B market.

The sharing economy itself is nothing new. Marktplaats made it possible years ago to buy and sell (second-hand) items very directly. But in recent years, transaction costs have dropped significantly, and location technology can now show us much better and faster who, what, and where is available. This allows us to divide everything into time units and offer it as a service. Who is driving to Paris NOW, carpooling (the old-fashioned hitchhiking) to Paris, and booking a place to sleep there for a few tens of euros from people who are currently not there and make their home available. All made possible by accurate time and location tracking and, not to forget, resources (living space, transport, means, etc.).

“The further this develops, the greater the impact on the (traditional) economy. Demand doesn’t decrease, but the way supply and demand come together changes radically.”

Changing traditional models is always difficult. That’s why taxi companies and hotels are massively suing Uber and AirBnB. But as we all secretly know, these kinds of massive trends can only be slowed down. In a few years, ‘sharing’ will be as common as putting your stuff on Marktplaats; we used to say ‘I don’t want strangers at my door’ about that too.

Here are some interesting articles that go into detail about the background and consequences for consumers:
May 13, 2013 Economist – The rise of the sharing economy
August 16, 2014 In the sharing economy workers find both freedom and uncertainty
January 2015 – How Traditional Firms Must Compete in the Sharing Economy
October 2014 – How Uber and the Sharing Economy Can Win Over Regulators

B2B sharing economy threats and opportunities

The article from PWC emphasizes that several industries have already failed to see the opportunities and threats of sharing in time and have come under heavy pressure as a result. We all know the story of music, film, and TV with Napster and later peer-to-peer file sharing. Music especially is still undergoing enormous change because of this, while the automotive industry shows that it can be different. Companies like BMW, GM, Avis, and Daimler, for example, were not caught off guard and each have their own sharing branch or participation. What threats could arise in your market, and perhaps more importantly, what opportunities do you have to respond? We came up with the following two examples:

Joint purchasing – Several large companies already jointly purchase legal advice, and it’s only a matter of (little) time before this happens in many other service markets. But this could even happen to a manufacturing company; joint purchasing saves time and money. Why not get ahead of this by acting as a connector and facilitator yourself? What advantages can you gain here?
Sharing production capacity – there is always a surplus or shortage, think for example of machines running overtime or standing still. Usually, companies then choose to shrink (save) or expand (invest). Often a choice based on a snapshot. Why not take a ‘pause’ and share capacity with another company or even a competitor?
Office space / desks – The market for office spaces is already under heavy pressure, but in a labor market that is becoming increasingly flexible, this will continue to change. Why not rent out these facilities?
Employees and systems – Your organization may have developed a lot of knowledge, skills, or systems that enable certain work or quality. By efficiently deploying these for other companies as well, you get the most out of these assets.
Easier access to capital – The entry barrier for your market was always significant, but easier access to production resources and capital (e.g., through p2p lending) makes it easier to enter (and compete in) a market. For you, the question is which aspects of your organization provide truly sustainable competitive advantage and how you will develop or emphasize these?

With this article, we have given you a first introduction to the B2B sharing economy, but also immediately framed it to give you professional insight into the influence this trend can have on your market. Hopefully, you are inspired and our general examples have made you think about your specific market. We are happy to talk further with you about your specific challenges; if you already have a vision on this trend or the opportunities in your market, we would of course love to hear from you. We are reachable via our contact form.