The rise of the peer-to-peer business model
Businesses are increasingly looking to their customers as a
creative source for design and idea generation. As our client work
at GSG continues to help clients innovate to grow new revenue, the
process of "co-creation" can deliver tangible benefits for a brand
savvy organisation; allowing concepts to be tested, communities to
be forged and access to a bank of creative, independent minds.
There is, though, a growing group of companies that have taken
the customer's involvement one step further. Instead of the
consumer simply consuming, they actively participate in the
fundamental running of the business by supplying, selling or
servicing other customers. Of course, "sellsumers" of this type are
not new, eBay being a prime example of a business model dependant
on the interaction and transactions of its independent buyers and
sellers. But the concept of "peer to peer" business interactions,
facilitated by digital platforms, is extending to new markets and
new concepts (from car parking to business loans, gift cards to
TVs) to meet the unmet demands of customers that are progressively
looking online to source hard-to-find products / services, or to
simply grab a bargain. "Sellsumer" concepts equally fulfil the
needs of the sellers themselves; by tapping into the basic human
desire of being one's own boss, satisfying an entrepreneurial sprit
or making a quick buck on the side. The latter, fuelled by the GFC
has arguably been the most pertinent factor in the growth of these
business, where helping customers to make money (and not just spend
it) by using the assets they already own, is the source of their
own revenue.
Here, we look at five innovative examples of peer-to-peer
businesses from Australia and around the world. Each have
successfully transformed an unmet customer need to a business
opportunity and in doing so, have put the consumer at the heart of
their business model:
ParkAtMyHouse (http://au.parkatmyhouse.com)
One of the most established P2P businesses, ParkATMyHouse
provides "a matchmaking service for parking", enabling
property-owners to rent out their empty driveways, garages, car
parks etc to drivers needing somewhere to park.
DriveMyCar (www.drivemycarrentals.com.au)
Recently arrived in Australia, DriveMyCar is an online rental
marketplace that facilitates private car rentals. For a fee, a car
owner can list their car and make it available for rental. Renters
join for free but must provide a profile of their driving history,
which the car owner can view and use to accept or reject the
request for rental. If accepted, DriveMyCar automatically produces
a lease agreement and covers the neccessary insurance.
Funding Circle (www.fundingcircle.com)
Self-termed "lending community", Funding Circle provides a
platform where "ordinary people can lend directly to small
businesses in the UK". By sidestepping the banks, Funding Circle
aims to offer lenders above market rates of interest, while
businesses, who are screened for credit worthiness, avoid costly
admin fees. The rate of return for loans is set by a reverse
auction, and the system facilitates the trading of loans between
lenders.
GiftCard Rescue (http://www.giftcardrescue.com/)
GiftCardRescue provides an exchange service for unwanted
giftcards. Based on the redemption value of the card, the site sets
a price at which the giftcard will be bought (for cash) or swapped
for another store's card. The site then resells the unwanted cards
for up to 30% of their face value to those customers looking for a
giftcard bargain.
NeighbourGoods http://www.neighborgoods.net/
US online community site helps tools, boats, electronics and a
host of other items to be lent, borrowed, sold or bought. The site
helps facilitate transactions with a reservation calendar,
automated reminders, wishlist alerts, private messaging between
site members, and item tracking.