Welcome, this industry newsletter shares key market changes, in a twice-monthly publication, curated by Jeremiah Owyang, Founder of Catalyst Companies™, you can subscribe to the email newsletter on the footer of the homepage.
One in Five World Travel Businesses Affected by Sharing/Collaborative Economy
This was the result of an informal, but informed, annual survey taken at the World Travel Market exhibition in London. Responses indicated an 86% satisfaction level with peer-to-peer travel options. About 10% of Englanders are participants in the Sharing Economy. Simon Press, Senior Director of World Travel Market said, “These findings are a real eye-opener. Those businesses around the globe which are competing with peer-to peer need to have a strategy in place.” (Special thanks to April Rinne for sharing this content online. Follow her on Twitter at https://twitter.com/aprilrinne.) Read more.
Lyft’s Growth Exceeds Everyone’s Expectations
Lyft president, John Zimmer, recently explained his company’s growth saying, “The space is massive. It’s way bigger than people thought when we started.” It’s not just the space that is bigger. It’s the breadth of acceptance as well. Lyft grew from a presence in 15 cities to 65 cities in 2014 alone, generating a 500% increase in revenue for the year. Zimmer now believes that peer-to-peer ridesharing will be the catalyst for transitioning from car ownership to transportation as a service. Read more.
Three Drivers of the Collaborative Economy
Jeremiah Owyang has published an essential study of the three main drivers of the Collaborative Economy. Like a diamond, the Collaborative Economy has many facets, but its main characteristics, there are only a few things that drive a diamond’s value (cut, color, clarity and carat weight). The Collaborative Economy is driven and its “value” is determined by Society, the Economy and Technology. Owyang’s insightful analysis in available online. Read more.
Facts and Forecast for Airbnb: Rapid growth could bypass hotel brands
Facts: Airbnb listings have doubled in the past year to more than 550,000. Airbnb now operates in 192 countries. (That’s 192 out of 196.) It booked more than 10 million stays, generating $250 million in revenue for the year. Forecast: WIRED has said that it expects Airbnb to “usurp the InterContinental Hotels Group and Hilton Worldwide as the world’s largest hotel chain – without owning a single hotel.” Facts: There is an overwhelming demand for shared space. There is a similar demand for traditional hotels. Forecast: Both will continue to prosper based on the contrasting experiences offered to consumers. Read more.
FanPay Receives 128 Cease and Desist Orders
FanPay, the crowdfunding dreamchild of three Notre Dame graduates, has not even gone live, but it has already received 128 Cease and Desist orders from NCAA schools, including their alma mater. FanPay’s mission is to tap crowdfunding to collect and hold funds for specific student athletes as incentive for them to successfully complete their education. Although an athlete cannot solicit the funding, donors specify to whom the money is designated. As careful as FanPay has been to comply with strict NCAA rules, those rules currently forbid players from even accepting the promise of future money. Read more.
The Need to Create Is in Our DNA
Commenting on yet another first for the Maker Movement, Intel’s Carlos Contreras pointed out that, “When you give people an opportunity to create, they take it.” He said that the need to create is in our DNA, which is a driver of the Maker Movement. Patients at the Monroe Carell Jr. Children’s Hospital at Vanderbilt University are proving Contreras’ point. The hospital is the first to provide A Mobile Makerspace for its sick children. Mobile Makerspace is a cart loaded with creative activities, including a 3-D printer, an Instax camera, Play-Doh, circuitry and all sorts of tools children can use to build something with their hands. Daryann Pryor spent two weeks at the hospital each year for almost ten years. The victim of cystic fibrosis said that she used to spend those two weeks lying in bed sleeping. Now she spends part of those 14 days being a creative maker. Read more.
From the beginning it has been generally understood that the Collaborative Economy would become more and more disruptive the wider its influence was felt. As startups continue to appear and have their disruptive effect, institutional pushback creates growing pains for them. Startups are not trying to be disruptive. They are trying to offer easier access to products and greater flexibility of services. Disruption is simply an inherent byproduct of change. Even as many traditional companies have adopted creative, collaborative strategies, others push back, typically with politicking for the startups to be subject to the same rules and regulations that they are. Airbnb, Lyft and others have faced these issues and, in the spirit of collaboration, are making the adjustments necessary to operate legally and and forthrightly. Read more.