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  • feedwordpress 21:44:16 on 2016/05/24 Permalink
    Tags: Collaborative Economy   

    Market Snapshot: Crowd-based Insurance Startups on the Rise 

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    Above Image: Crowd Companies has identified more than a dozen crowd-based insurance startups emerging from financial industry hotbeds like London, more will emerge from each region.

    Crowd- and peer-based business models have impacted the hospitality industry, transportation space, financial sector, and other industries as indicated within the latest Collaborative Economy Honeycomb 3.0.

    We’re now seeing the rise of a growing set of startups in the insurance industry that are enabling P2P, pro-rata coverage or crowd-based models that leverage the crowd. These emerging insurance tech startups include mostly peer-to-peer offerings, with a handful that are also improving the delivery of insurance through new technologies.

    P2P insurance allows for more people to be insured by aiding underserved markets. It provides coverage for gig workers in the collaborative economy, while collective purchasing yields preferential pricing (or even funds returned) to those subscribed to peer-based insurance programs. With most of the emerging startups acting as brokers, the insurance carrier startups are still forthcoming in the insurance world. Lemonade is a clear example of this (though they’ve yet to launch).

    There are several companies popping up for specialized insurance, too. From insuring cyclists to pet owners, and one––Bought By Many––that specializes in ‘long tail’ insurance. This means insure those items that aren’t often insured. Then, there’s Trōvthat provides ‘on-demand’ insurance, for those who want to insure in the moment by simply snapping a pic in the app, granting fast coverage. It’s coverage for when people seek access over ownership.

    The map above of crowd-based insurance startups isn’t complete; there are more emerging, and we expect for each geographic region to develop their own capabilities. See the table below for additional details.

    Sample of Crowd-Based Insurance Startups: 

    Startup Category Description
    OnSource On-Demand Inspection On-demand visual inspection by a group of independent crowd workers
    trov On-Demand Insurance On-demand protection for belongings – home, auto, personal property. Easy to turn on/off.
    Tong Ju Bao P2P Broker TongJuBao is a P2P insurance platform that helps its users manage risks. TongJuBao was developed by QiBao Investment Consulting (Shanghai) Co., Ltd, a WOFE (wholly owned foreign entity) and is ultimately controlled by its French founder, Tang Loaec. (CB Insights)
    Broodfonds P2P Insurance – Crowdfunding Group of freelancers crowdfunding each other’s sick leave
    PeerCover P2P Insurance – Crowdfunding Join group, pay fee upfront, users decide if claims are fair and can get up to 5x your balance to cover claims. ‘Crowdfunded cover’
    MetroMile Pay-Per-Mile Auto Insurance Metromile is a car insurance startup that offers pay-per-mile insurance and a driving app. It is currently the only company offering pay-per-mile insurance in the United States.
    CommonEasy P2P Insurance Broker CommonEasy is a peer-to-peer insurance platform that utilizes the power of the crowd to collectively insure and protect material possessions, homes, and livelihoods.
    Besure P2P Insurance Broker Peer-to-peer risk sharing for property insurance, not currently launched.
    Friendsurance P2P Insurance Broker Pools users into small groups. Brokers with 60 insurance partners.
    Inspeer P2P Insurance Broker Users form small groups for auto, motorcycle, and home insurance. Users pledge to cover up to a certain amount.
    Guevara P2P Insurance Broker – Auto Pools friends and acquaintances, or other small groups, for car insurance.
    Gather P2P Insurance Broker – Business Business insurance shared across a group/community.
    Bought By Many P2P Insurance Broker – Long-Tail Works with insurers to develop policies and negotiate discounts for long-tail insurance needs like pet insurance, cyclist insurance, etc.
    SafeShare P2P Ins Broker – Share Econ Develop insurance products and partner with sharing economy businesses to offer users and providers insurance solutions. Work to fill in the gaps of insurance for Sharing Economy providers and users.
    Cycle Syndicate P2P Insurance Carrier – Cyclists Bike insurance shared over a small group. Insurance held by cycle syndicate.
    Lemonade P2P Insurance Carrier Lemonade is peer-to-peer insurance and one of the only carriers, but they’ve yet to launch. Groups of policyholders pay premiums into a claims pool, and if money is left at the end of the policy period, they get refunds.
    Uvamo P2P Insurance Carrier Uvamo, which plans to launch by the end of the year, aims to cut administrative costs by offering property and casualty insurance direct to consumers online. Those policies can then be diversified and grouped into a pool, which collects all the premiums paid by the policyholders. -CNBC

     

    Additional Resources:

     
  • feedwordpress 14:42:43 on 2016/04/05 Permalink
    Tags: Collaborative Economy   

    Collaborative Economy Market Contraction Signals Maturity 

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    Above Image: a butterfly emerges after contracting in a cocoon.

    You’ve probably read the article from Salon, with its sarcastic title and detailing of several failed on-demand, Collaborative Economy startups. A few people asked for my thoughts

    First, our data shows that the Collaborative Economy movement is here to stay,. We see people increasingly adopting sharing behaviors , startups like Uber are profitable in the United States, and the UK government is  offering a tax credit for people who participate in it. It’s not going away––but we do need to cull the herd.

    Tech-Markets-Go-Through-Five-Maturation-Phases-03

    Second, signs point to the fermented froth fizzing out as we enter Phase 4 of tech market maturation: Contraction…

    The Collaborative Economy Market is Changing:

    Too many damn startups are doing the same damn thing. Lisa Gansky’s massive directory of startups in this space tallies at a whopping 9,703 startups. In our latest Honeycomb 3.0, we reviewed 450 startups, but only about 250 made the cut. We found many startups doing the exact same thing as others, often in the same regional area! Take San Francisco’s recent valet app market, for example: there’s Zirx, Luxe, and Carbon all fighting for me to download their app so they can park my car in the city’s insane downtown area.

    VC welfare strings are starting to tighten. The Salon article refers to investment funding as “VC welfare,” which gave me a chuckle.it’s true; this market has been funded plenty, as shown in our massive spreadsheet on funding. It indicates that, in previous years, there’s been a total of $28 billion in VC funding poured into this market. Why is this? VCs wanted to see market traction (even if the startups weren’t in the black), and they were hoping to fund the next “unicorn,” which there are dozens in this market. On my analysis post on VentureBeat, we found that much of the funding centralized last year on the billion dollar unicorns––although I’m expecting the rest of 2016 to soften on VC funding.

    Startups are disappearing or consolidating. There have been quite a few companies that have fallen off the Collaborative Economy honeycomb, including Homejoy, Sidecar, TheStorefront, Zirtual, Spoonrocket, and others listed in the Salon article. With that said, there were acquisitions as the market merged, including: Blablacar acquired Carpooling.org, Expedia acquired HomeAway, Outerwall acquired Gazelle, and defunct Sidecar sold its assets to GM.

    What it Means to Enter the Contraction Phase

    This is normal, alike every tech cycle. I’ve been in Silicon Valley for nearly 20 years and have experienced three tech cycles: dotcom, social media/web 2.0, and now the Collaborative Economy. In each phase, we see the same patterns of market initiation, massive funding of clones, a shakeout, the consolidation, integration, and then maturation. The Gartner Hype cycle’s universal framework indicates we’re now near the “Trough of Disillusionment,” and preparing for the “Slope of Enlightenment” which suggests market maturity with fewer players.

    Market consolidation means the leaders will get even more acceleration. The Honeycomb graphic, is our attempt at representing global startups in each sector, sorted by industry hexes. We had to prune out existing startups as some hexes like Transportation, Space, and Money were so crowded with clones, they wouldn’t all fit. Furthermore, as startups hit the deadpool, the remaining startups would gain even more acceleration as they can clinch more of the market––making it even more difficult for new entrants. If a startup is in the lead –they’re likely to stay in the lead.

    The market is scrutinizing profitability of startups, as we enter this next phase. While investments are still occurring, the rate of heavy investments in 2015 seems to be slowing. In earlier market phases, startups were rewarded with large valuations for market adoption––but not measured on profitability or to get “in the black”. Now, the Collaborative Economy startups will need to make their balance sheets work in order to get closer to their gigantic valuations.

    So what does the future hold?

    Expect a Honeycomb with just about the same amount of hexes, but we’ll see less logos in each hex as the market weens off performance strugglers. Perhaps we’ll make the logos larger of the dominant players as these startups continue to integrate. They’re already integrating within city landscapes, brokering with governments and partnering with large corporations for business deals. Soon, we’ll be entering the next phase: Normalization.

    (Image used with creative commons license from Morgan Schmorgan)

     
  • feedwordpress 17:33:59 on 2016/03/10 Permalink
    Tags: Collaborative Economy,   

    Honeycomb 3.0: The Collaborative Economy Market Expansion #SXSW 

    The Collaborative Economy enables people to get what they need from each other. Similarly, in nature, honeycombs are resilient structures that enable access, sharing, and growth of resources among a common group. Our latest version of the Honeycomb framework, Honeycomb 3.0, shows how the Collaborative Economy market has grown to include new applications in Reputation and Data, Worker Support, Mobility Services, and the Beauty Sector.

    Get the Honeycomb: Register to Receive a High-Res Version
    This is a market map to help you understand how every industry can benefit from the Collaborative Economy by partnering with new startups. Advance to the registration page, or click on the image below to see the larger version.

    Screen Shot 2016-03-04 at 11.56.43 AM

     

    Our Research and Design Process
    Honeycomb 3.0 was a large undertaking. At least 460 startups were reviewed, and 280 were chosen to be included in Honeycomb 3.0.

    We researched and analyzed the impacts of new startups within the sharing economy since the publishing of Honeycomb 2.0 in December 2014 (and, before that, the original Honeycomb in May 2014). This time around, we specifically focused more on international startups, startups that are on the upswing, and those receiving a lot of funding. The goal was to take a current snapshot of the “A-list” companies in the space.

    Determining which startups to include required reviewing vendors included in previous Honeycomb versions, startups included in our funding spreadsheet, the overall market, and suggestions from our network. Each startup that was considered was evaluated separately for meeting sharing economy criteria, its relevance to the market, its function, and location.

    This process led to uncovering new trends in the sharing economy and establishing new categories, subcategories, and some re-organization of previously established categories. There was also some startups from previous Honeycomb versions that no longer exist or had been cannibalized, so they were removed.

    Honeycomb 3.0 is not intended to be a complete market picture, as there are thousands of other startups out there. We chose those that we found best met our criteria. You can use the blank template below to fashion your own version, too.

    Make Your Own Honeycomb, with this Blank Template

    Honeycomb3_blank_F (1)

    You can create your own honeycomb, for your specific region or industry sub-category, or simply one that’s focused on your view of the world. We’d love to share it, collaborate, and make this a resource for everyone.

    Additional Resources

     

     
  • feedwordpress 00:38:04 on 2015/12/29 Permalink
    Tags: Collaborative Economy   

    2016 Brings Additional Enrichment, Growth to Crowd Companies Innovation Council 

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    It’s almost a new year, and we have a lot planned for 2016 to help our members grow their Collaborative Economy programs here at Crowd Companies, which I founded two years ago. I wanted to share with you five items that we’re focused on:

    1. Content and discussions that focus on “how to” deploy in innovative markets,
    2. Leading our members through the six-phase Innovation Journey methodology,
    3. Over five physical events, plus private roundtable dinners for members,
    4. An additional topic focus, the “Autonomous World” (drones, self driving cars, AI)
    5. New employees, to serve our growing member base

    Next year, we’ll focus even more on the “how to” of program development, providing the in-depth tools you need to determine opportunities and begin defining initiatives related to the Collaborative Economy, innovation, and other disruptive technologies. To do this, we have a number of offerings planned:

    Building Out “Crowd Innovation Journey” Resources, a Roadmap for Business Change
    If you attended our October Main Event in San Francisco, you’ll remember our Innovation Journey, a framework we developed to guide members through the six stages of program development, prototyping, and deployment (see below). 

    Screen Shot 2015-12-28 at 9.02.17 AM

    In 2015, we began organizing existing Vault resources by phase of Innovation Journey, and in 2016 we’ll be building out a series of useful tools that align with the initial stages of this journey. These tools may include:

    • Member Program Spotlights
    • Company Adoption Survey
    • Feasibility & Readiness Diagnostic
    • Use Cases by Industry Vertical
    • Business Case Template
    • Partner/Supplier Tools
    • Collaborative Economy Business Models Report

    Hosting In-Person Events and Online Session, Group Calls
    We have five in-person events planned for 2016 (with some additional regional roundtables in the works), in addition to your monthly session calls with industry thought leaders and group calls with fellow members. These events are included in your membership:

    • Tour and Salon: Future of Mobility in the Age of the Autonomous World, Jan. 21 | 3:30pm – 8:00pm | Silicon Valley
    • SXSW Brunch Member Panel and Social, March 12, 2016 | Austin, Texas
    • Spring Summit: Co-innovation for your Brand, April 28, 2016, with optional evening tour April 27 | Hallmark HQ, Kansas City, Missouri
    • European Summit: The Global Collaborative Economy, June 22, 2016 | BMW HQ, Munich, Germany
    • The Main Event, October 5-6, 2016 | San Francisco
    • Regional Roundtables,  Feb in NYC | Others to be determined

    Expansion of Crowd Companies’ Topic Coverage: Autonomous World
    As previewed by our kickoff event of the year, Crowd Companies will be broadening its coverage in 2016 to include additional topics that affect our innovative members. The council will continue to support its members as they deploy Collaborative Economy programs, while also expanding its focus to assist members as they adapt their business models to other tangential technologies that stem from these crowd movements.

    The first focal point you’ll begin to see content and resources emerge around is what we’re calling the “Autonomous World” where robotic hardware and software perform tasks once performed by humans, often using the same business models from the collaborative economy. In January, we’ll be hosting a member event where we’ll examine the impact of self-driving vehicles, drones, and artificial intelligence on all industries and society as a whole. Also release a research report for members and and a related infographic for public consumption.

    Adding a New Member Success Manager to our Crew
    Finally, we’re pleased to announce the newest Crowd Companies staff member, Carl Bohlin, whose primary goal will be to understand our members needs, and strategically matching them to a variety of innovation resources that the council offers. Crowd Companies has over 200 members, spanning 50 companies, across multiple countries, as such, Carl will work with Angus on member success initiatives to assist the council in its growth along the Crowd Innovation Journey. He has more than 7 years experience in managing peer-to-peer councils at Forrester and Giga, and has a background in IT and financial services. Carl joins us on the east coast.

    If you work for a large company, and want to learn more about membership, please submit your details to our online submission form2015 flew by, and I’m looking forward to growing with you all in 2016. Let’s keep the momentum going. Cheers to you and your loved ones in a prosperous new year!

    Warm Regards,
    Jeremiah

     
  • feedwordpress 16:21:28 on 2015/12/07 Permalink
    Tags: Collaborative Economy   

    Why a Strong Brand Matters in the Collaborative Economy 

    In a recent webinar, I joined Andrew Reid, founder of Vision Critical, to discuss the new rules of the Collaborative Economy. The webinar explored three paths established companies can take to successfully compete with the likes of Uber, Airbnb and Instacart: through price, convenience and brand.

    As we revealed in the webcast and in the accompanying report, brand is the most useful path for companies with strong brand recognition and positive brand sentiment. This is particularly true in markets where customers are sensitive to risk.

    This finding might seem counterintuitive. Afterall, startups—the small guys—have driven the growth of the Collaborative Economy. But our report, based on feedback from more than 50,000 North Americans, clearly shows that in almost all categories of the Collaborative Economy, a single player dominates the market. That’s why Uber is practically synonymous with ride-sharing, Kickstarter with crowdfunding and Airbnb with house-sharing.

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    Positive brand recognition is huge for top players in the Collaborative Economy. For instance, more than 40 percent of North Americans have heard of market leaders like eBay, Craigslist and Uber. Many of these same players also have positive reputations, as the infographic below shows.

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    In short, the scrappy innovative startups of the Collaborative Economy have become big brands themselves.

    The big lesson: your brand still matters in the Collaborative Economy. The rise of on-demand technologies doesn’t change the fact that brand recognition and market dominance are still closely related. In fact, across all age groups, brand is as important as convenience in determining whether a customer will consider sharing or buying. Brand trust determines whether buyers will choose traditional buying over sharing, and vice versa.

    The enduring importance of brands is good news for established companies. Here are three strategies for companies that want to take advantage of their brand name in the collaborative economy.

    1. Partner with companies that have strong positive brand sentiment. This provides a level of brand trust, which is useful in encouraging people to try your initiatives in the collaborative economy.
    2. Leverage your own brand to increase your collaborative capacity. Determine if your brand has strong positive recognition, and if it does, make sure your brand is front and center as you launch sharing programs.
    3. Focus on customer experience to build your brand. For companies that are already well known, providing a high caliber of customer experience assures the continued strength of your brand—a necessary step in attracting customers in an era of collaborative consumption. Engage with your customers frequently to identify ways of providing a more seamless experience, and build your brand over time using customer insight.

    For a deeper dive on the use of brand as a competitive advantage in the collaborative economy, watch a recording of the webinar The New Rules of the Collaborative Economy.

     
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