Example of Empruntez-le.fr and 1Mile.com. Following the articles on actors of the sharing economy published on 13 November 2014 and the article on 28 November 2014, we saw an increase in the number of actors in the sharing economy. cooperative economy and their diversity. face this spread exchange services or credit of goods and / or services, it is interesting Ask how these players manage to thrive in such a popular arena and what economic model allows them to make a profit?
We will try to give concrete answer with example lend-le.fr (interview with Sebastian Loisson, co-founder of the service) and 1mile.com (Interview with Adelya Abdurzakova).
What is “Empruntez-le.fr”?
Empruntez-le.fr allows bothborrow things and ask helping people, free.
The site also offers the possibility to serve an ad to everyone, which is then relayed to nearby members.
This platform also integrates a messaging and rating system To facilitate exchange.
Point system: at the heart of how this service works
Each member gets points after being lent an item Where gave a hand, which he can then use to borrow from or help other members. Everyone independently chooses the number of points required to lend their items or lend a hand.
What are the main challenges of the site?
The platform will face 3 challenges:
- break the barrier at one’s entrance collaborative consumption, ie critical mass of users and proposed materials;
- Create your own niche with well-established traditional shopping options and rent between persons;
- Deal with competing sites.
How to get the required critical mass?
In order to reach a critical mass of users and content, the site must simultaneously achieve 3 objectives:
- a wide variety of goods and services available;
- the relevance of the offered goods and services;
- A large number of users, and a narrow geographic network.
If these goals are not met, there is a significant risk that the user will become discouraged and turn to traditional purchases.
What is your competitive advantage?
lending it provides a free admission On the platform, that represents a significant cost advantage compared to rental services and paid services between individuals.
The point system has therefore been strategically thought out to establish a gratuity for the owners and, in return, entitle them to loans.
What is your business model?
to borrow it, point of purchase Represents a source of income (for users who lack it).
Most collaborative platforms that have not reached the required critical mass do not cover their costs, which is typical for these “volume” oriented business models. Today’s aim is to reduce the brakes to a minimum grow user community, free There is a way to partially solve this problem.
Once a large community has gathered, lending it will offer its users new features who will allow us To enhance the service provided to the users As well as our income.
1 mile . instance of
What is 1mile?
This collaborative web platform A helping hand, allows you to create an ad to find an item to lend or barter. Mutual assistance and sharing are important values for the platform.
All exchanges on 1mile are based on mutual aid and barterThere is no business transaction. Starting with the observation that non-market relationships between people enrich them further. One virtual voucher is created (smile), which allows you to reward the person who helped you.
What makes you different from the competition?
Unlike other players in the market, 1Mile offers a more global concept, bringing together all practices of collaborative consumption.
1Mile also has an interesting advantage as it is a intergenerational bridge Which bridges the gap between younger people and more experienced people.
On a technical level, the heart of our platform isinstant geolocation tool And interactive that allows you to find your “happiness” where you are.
1mile business model
Smile is at the heart of our economic model; Soon it will be chargeable and have a symbolic price of 1€ and our members will be able to buy and use them freely as they wish to be rewarded for a service. The person who does not want to buy it can still earn by serving someone. The Platform will always be free to use, without advertising or exploitation of users’ personal data.
“Egg and Chicken”: the Challenge of the Actors of the Allied Economy
The main challenge each new player must solve in Allied Economy is the “chicken and egg”. In fact, most affiliate economy sites are platforms with 2 entries: they offer to connect a community of “suppliers” to a community of “consumers” that they must hold., The “chicken and egg” problem then appears: with few suppliers and goods/services being offered, consumers will not be interested in them and without consumers, the suppliers will also show no interest. So it’s a question of capturing both communities, and what’s more, simultaneously.
(Sebastian Loisson, Empruntez-le.fr)
Finding a balance between suppliers and consumers
Hence the difficulty for these platforms will be in bringing together the suppliers (goods, services) and users (consumers of goods and services).
Once a balance is established between the two communities, the model may become viable. However, to achieve this critical mass, the platform will require time and investment…
How to solve this problem ?
For Sebastian Loisson, 2 ingredients must be mixed:
- Patience and Stamina: Many years are required for any collaborative consumption platform to reach the critical mass of suppliers and consumers and provide efficient service of good quality. Hence it is necessary to ensure adequate financial base to stay afloat over time and be cautious about expenditure.
- Begin with a strategic “focus”: When launching any collaborative platform, you have to maximize the opportunities that suppliers and consumers will find. This is why two types of specialization are typically seen in the beginning: a “geographic” focus (some platforms choose to focus on a particular area to develop) or a “regional” focus (others focus on the first good type). or service, such as sports equipment, childcare, etc.).
Conclusion: Allied Economy Forum: How to Stand Out?
To emerge in this field, players must meet certain conditions:
- Seems like Balance between suppliers and applicants. For this persistence is an essential quality that every actor should be aware of;
- to suggest Properties performance that users Customization To best respond to offers and requests (geolocation system, user reviews, point compensation system, etc.);
- define a niche To be able to develop at the launch of the project;
- Maintain it value of cooperative economy, such as sharing, dissemination and mutual assistance that act as a backdrop and make it possible for users to present convincing arguments.