1. Upscaling in the sharing economy Insights from the UK Vadim Grinevich & Franz Huber v.grinevich@soton.ac.uk

2. 2 Bio Associate Professor, Southampton Business School Expertise economics of innovation and entrepreneurship innovation management service and business model innovation, knowledge transfer spatial dimensions of innovation and entrepreneurship

3. 3 9,568 platforms in 131 countries http://meshing.it Project idea

4. 4 Aim to develop a typology of different models of upscaling in the sharing economy

5. 5 Scope 30 companies interviewed 3 sectors Web-interfaces of 75 sharing economy platforms analysed

6. 6 Scope 3 types of companies o foreign sharing economy platforms who expanded their operations in the UK o foreign sharing economy platforms who attempted to expand in the UK but later withdrew; o UK home grown sharing platforms expanding regionally, nationally or internationally.

7. 7 Scope Frenken et al, 2015 temporary C2C access to underutilised physical assets B2C shared access P2P transfer of ownership P2P access to intangible assets B2B sharing

8. 8 Scope ApproachedInterviewed a) SectorAccommodation327 Transportation2010 Personal/professio nal services 2313 b) Sharing economy type Pure sharing4313 On-demand157 Product service84 Second-hand*43 Business sharing*53

9. 9 Emerging upscaling models Positioning sharing economy businesses along the following dimensions: the geography of value proposition upfront fixed capital requirements the extent to which service provision is associated with complex and iterative interactions with customers/other stakeholders reveals 4 upscaling patterns

10. 10 Type 1 - Born Global  Value proposition is from the start designed for multiple countries  internationally transferable and sustainable from the very beginning of operations  demand and supply side of the market shaping up automatically Sectors: Accommodation, personal and professional services. Examples: Home swapping, short-term accommodation- sharing; virtual freelancer platforms.

11. 11 Type 2 - Local value potentially global Value proposition can at first be sustainable on a regional and local level may be viable internationally, but cannot be enabled automatically compared to Type 1, require more local knowledge, local coordination and local testing in order to structure and grow a marketplace in a new location may require having local and regional offices in place. Sectors: Accommodation, transportation, professional and personal services. Examples: Car- and ride-sharing; tools/equipment sharing, re-sale, handing over of redundant assets; business-to business storage sharing.

12. 12 Type 3 - Local infrastructure as product services similar to Type 2 in terms of the geography of value proposition (regional/local). but unable to start operations without significant upfront capital expenditure and prior, often formal, agreement with local authorities and other infrastructure regulators. Sectors: Transportation Examples: Business-to consumer short term car rentals.

13. 13 Type 4 – co-created services deal with sensitive personal services or bespoke professional services. geography of value proposition (regional/local), this type is similar to Types 2 and 3. require little upfront investment to set up, making it close to Types 1 and 2 What makes them stand out is a significant amount of complex social (human-to-human) coordination required on the part of the platform to engage with different types of platform users to co-create a service experience. Sectors: Personal and professional services. Examples: Childcare and housekeeping platforms; project outsourcing.

14. 14 Trust One major concern identified for all upscaling models Implement platform tools and customer touch points, to combine online and offline channels of communication and support the most upscaled platforms systematically offer more features, and require (and provide) more information Examples –communication on quality standards, – insurance or additional guarantees, – information around the rating system, –communication rules, queries about a product/service or about the owner.

15. 15 Collaboration Type 1 “born global” Type 2 “local value potentially global” Type 3 “local infrastructure as product service” Type 4 “co-created services” Pure sharing economy - accommodation; On-demand economy - personal/ professional services Pure sharing economy - transportation, & personal/professional services On-demand economy - transportation Second-hand economy- personal/professional services Business sharing- personal/professional services Product service economy - transportation On-demand economy - personal/professional services Business sharing - personal/professional services Upscaling patterns are only partially sector specific, and are not entirely attributable to particular type of sharing activity. Opportunity for collaborative action, cross-organisational and cross- sectoral learning amongst sharing businesses in relation to business strategy, operations, marketing and stakeholder relationships.

16. 16 Collaboration Few use open innovation for their business development Reluctant to signal that they may need to resort to external sources of knowledge, technology and services. While organised as a collaborative platform do not adopt a collaborative approach when dealing with common intra- organisational challenges Limited opportunities for incorporating complementary activities and offerings of third party platforms. Little co­operation when it comes to dealing with local, regional and national stakeholders

17. 17 Summary Sharing economy still operates outside the mainstream markets Upscaling is about crossing the chasm from their currently niche position and to attract mainstream customers. This can be achieved through closer knowledge exchange and inter-organisational learning relation to the value of their customer proposition, technology and operations management, and stakeholder engagement. Request the full report from: https://www.sbs.ac.uk/research/projects/scaling-up-the- sharing-economyhttps://www.sbs.ac.uk/research/projects/scaling-up-the- sharing-economy