The sharing economy is just another status wank
The sharing economy is getting a lot of attention in marketing circles, but Eaon Pritchard argues it’s less about trusting our fellow man, and more about status seeking.
The techno-hippies at Wired magazine recently celebrated the emergence of the so-called ‘sharing economy’ (as epitomised by peer-peer services like Airbnb and Lyft) as a ‘set of digital tools that enable and encourage us to trust our fellow human beings’.
Then a response from New York magazine indicated that this is perhaps less about trust in the kindness of strangers and more about a sense of desperation brought on by an economy that that has forced millions of people to look to ‘odd jobs for sustenance’.
Pritchard
” . . . we live in the world of bullshit, but as long as you know it is bullshit, and as long as they know that you know it is bullshit, then it’s a game we can all play.” Sums up most marketing.
” . . . we live in the world of bullshit, but as long as you know it is bullshit, and as long as they know that you know it is bullshit, then it’s a game we can all play.” Sums up most marketing.
and here was me thinking Air BNB was all about wanting to rent a decent apartment for half the amount a 5 star hotel would charge.
Does anyone know where i can rent an authentic Afghan open-source composting toilet in Fitzroy?
In ‘The Snowball’ by Alice Schroeder, Warren Buffett’s ‘internal scorecard’ is referred to as his own true measure of worth. If this account is correct, we have a man worth billions of dollars living relatively humbly, pursuing simple amusements and maintaining an unsophisticated dietary regime (Twinkie bars IIRC). Yet he has joined forces with the Gateses to create one of the largest and most effective philanthropic ventures in history. I don’t think he’s doing it for status, and I don’t think he’s doing it to be authentic. I think he’s doing it for his own ‘internal scorecard’. Maybe he’s the exception to the rule. But this measure resonates with me.
I enjoy the sharing economy; it means I can comment and contribute on a site like this rather than just read the article. My leisure time pursuits are admittedly arcane and highly discriminatory, so the sharing economy allows me to engage with like-minded people around the world. But I have my limits as to what I’m going to share, hence my anonymity.
Our sentient minds seek to differentiate ourselves from our cluster. Mine as much as anyones else’s. What you have described is just one (admittedly widespread) manifestation of that, but I’m not going to sit there and tell my friends their pursuits reflect their faux authenticity.
What I’m going to do is continue to enjoy their company and use my ‘bullshit calibration device’ as a tool when I’m on the job figuring out how to encourage others to buy things.
I think the post-employment ‘leisure class’ is the big worry. If we can’t get a job after the age of 50, and live to be 100, what are we going to do with half our lives?
Is the toast gluten-free?
“The sharing economy” … hmn. I encountered that once-upon-a-time spending three months in a remote village in Kenya. My “inner Marxist” loved it, but here? Yes, simply a wank, unless we start putting lamp posts and hemp to better use.
Dear Eaon,
Thank you for your thoughts and I agree with you. But, really, is there any trend or movement that’s embraced by the fortunate leisure class that’s not categorised as a w**nk?
The thought behind the movement is honourable and enables this exchange we’re having. The share economy also comes with the promise to reward creative and thoughtful people hence taking the power away from monolithic giants that have dominated the economy. The financial monoliths have jumped on the bandwagon, pouring capital into these ventures but hey, at least the facades are more creative, colourful and there are masseuses and the ubiquitous ping pong tables in the mix. The job market really needed this facelift and the IT people need to make the most of this Renaissance.
It’s exciting times. Like all revolutions. But as Pink Floyd put it, “up and down and in the end it’s all round and round”.
You mean Coke wasn’t “The Real Thing” ?
That really cheered me up. Nice one Eaon
There’s a range of motives behind the sharing economy – social, economic, and yes, status, but when you survey the scope and reach of sharing schemes (http://www.collaborativeconsumption.com/), there’s no doubt it’s an important trend for all companies to examine. Renting rather than buying, or “gifting” platforms such Freecycle, are displacing the sales of new products. And it’s not just producers that will be affected by lost sales, but the whole supply chain, plus government tax revenues.
Several big brands are already experimenting by running rental schemes alongside their traditional sales, such as Daimler’s Car2Go, and Home Depot’s tool rentals. In the US, Avis decided if you can’t beat ‘em, buy ‘em and purchased the largest car share scheme, ZipCar, in December 2012 for $US500m. In Australia, Bunnings offers tools hire, Hertz purchased car-share scheme Flexicar in 2010, and has launched Hertz24/7, and the Stockland Property Group hosts Open Shed outlets on their properties, a scheme that facilitates sharing of tools and other household gear.
While most sectors face declining sales because of the sharing economy, there is an upside for luxury brands. Consumer segments who could previously not afford to purchase high-end products, can now access them through a range of, for example, fashion swapping or renting sites including Girl Meets Dress, Wish Want Wear, My Sister’s Wardrobe, The Clothing Exchange, and Bag Borrow or Steal, which exhorts us to: “Be a fashionista on a budget by renting designer purses and accessories from Bag Borrow or Steal – as seen in Sex in the City!” Such sharing platforms provide for a significant expansion of the potential customer base of premium brands, together with a host of new distribution outlets.
@Ellen. Nice one.
No-one is claiming that the sharing economy is going to fundamentally alter human behaviour just that its a better way of functioning en masse. If you’re saying that the pursuit of social status ultimately results in the normalisation of progressive thinking and innovation then I’d see that as a good thing.
Marketing’s goal is to convince us to buy stuff we don’t need to impress people we don’t like.
@Ellen – If I was representing a luxury brand, I’d do all I could to have those clothes entering a library-like system (except for the high profile beautiful people who would get other people buying my brand).
After all, the enemy of luxury is availability. The more available something is, especially at a budget price, the less ‘luxury’ it has.
It doesn’t expand the customer base if they don’t end up buying from you.
I take it all back!!
Eaon; You obviously missed the biography of Thorsten Veblen. Recommend it to you. Also recommend you look at the cost of using GoGet and AirBnB versus the alternatives. Do you own a squirrel hat?
Thanks all for the commentary and @Warren yes, i’m aware of the contradiction between some of this POV and the rest of Veblen’s social theory ouvre, if thats what you mean. You’ve lost me on the squirrel hat though.
@Eaon: I was wrong, it was Coonskin that he wore at enrolled at Cornell. You should get one. I’d like to see you coming.
http://www.furhatworld.com/coo.....p-169.html
@Warren Thank you. Millinery specifics are so important in these matters. I’ll be wearing an Extra Full Cut 8 piece Touring Cap.