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Unlocking the Social Value of the Sharing Economy

 26 January 2016
 3.00pm – 5.00pm. Registration from 2.30pm, seated by 3.00pm 
 MND Auditorium

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Resources

Lecture Poster (PDF: 227KB)
Lecture Report (PDF: 873KB)
Lecture Transcript (PDF: 486KB)

Lecture Videos

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Synopsis

We have seen new sharing economy business models and marketplaces achieve stellar economic success in recent years. Airbnb, Lyft and TaskRabbit have been met with much fanfare from consumers. These community-based sharing initiatives have helped us rethink everything from ownership to public services, as well as, strengthened social fabric and built social capital through peer-to-peer networks powered by new technologies. Despite its benefits, the sharing economy raises many questions and unknowns, with regulators seeking appropriate strategies to govern its business models and ways of creating value. In this lecture, April Rinne will share her insights into best practices for regulating the sharing economy and how individuals, businesses and cities alike can unlock its social potential.

Lecture Report

"There is nothing new about sharing; up until the Industrial Revolution, it’s how we stayed alive." — April Rinne

 

April Rinne, a World Economic Forum Young Global Leader who leads its Sharing Economy Working Group, was in Singapore to discuss the sharing economy.

 

Ms Rinne characterised the sharing economy as a return to life prior to the Industrial Revolution. People traditionally shared resources instead of owning everything they needed.

 

What’s new about the sharing economy today is its scalability and enhancements introduced by digital technology and Internet connectivity. “By 2020, 90% of the global population over [age] six will have a mobile phone. A vast majority will not remember a time where they cannot find something over their phone,” she said.

 

This rapid closing of the digital divide will also mean greater participation from previously excluded demographics, such as the elderly and low-income groups.

 

Ms Rinne explained that the sharing economy prizes “access over ownership”, and is characterised by:

 

1. Resource utilisation
2. Decentralisation
3. Relationships

 

Benefits of the sharing economy are manifold, said Ms Rinne. They include economic benefit (i.e., cutting costs of ownership); environmental benefit (i.e., less waste); community benefit (i.e., social capital); and convenience (i.e., choice, flexibility and access).

 

"Well-being is enhanced when people can do something for the environment. Social value is potentially everywhere … I cannot find any other business model that can deliver these benefits all at once." — April Rinne

 

There is no one “right” approach to the sharing economy. The platforms could be monetised or not; market-driven or community-driven; local or global; reactive or proactive. A useful way to decide on the model is to start by asking, “What’s the vision?”, “How marketoriented is it?”, “What’s the role of the state?”.

 

In the US, the sharing economy often “translates to an unfettered capitalism”, she said, and people are driven by venture capital and concerned with social safety nets.

 

In Europe, which Ms Rinne described as having “a stronger social sector”, the vision often “translates to more welfare-driven economies” where people are more concerned about its impact on labour unions.

 

In Asia, Seoul is a city that is “benefiting a lot from the sharing economy”. They have established a government department, developed regulation, and set aside a budget for it within the government’s Innovation Bureau.

 

Closing with Q&As, many questions revolved around how Singaporeans could participate more in the sharing economy and how regulators here should behave.

 

In short, Ms Rinne said that Singapore is already a “nirvana” for the sharing economy — with its density, abundance of talent and innovative economy. These are foundations that allow for scale in the sharing volume. For individuals to participate, let demand start the conversation, e.g., asking for items rather than offering to share items. As for government, other than proactively investing in the sharing economy, Singapore regulators could also use pilots to test out initiatives rather than set out laws right from the start that may stifle the growth of sharing platforms.

 

Written by Leong Wen Shan.

 

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About the Speakers

 

 

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