John, who attended Cornell Hotel School of Hospitality learned that:
Population density and cities are rising rapidly amongst limited resources & infrastructures that were built decades ago. Our history’s transportation system went from canals to railroads to highways. The occupancy of seats in public transportation is under 20% — so we UNintentionally designed ourselves into solitude. We drive our cars into garages that lead into our private homes.
John’s goal is to get more people in seats by sharing. In 2007 Zimride was created for long distance trips from colleges home. Lyft was born in 2012.
But John’s goal was always to figure out how to increase occupancy levels of cars…so NOW, he introduces LYFT LINE. If everyone is leaving this conference at the end of the day, why not share a ride? Lyft learned that over 90% of rides in a 5min window were going the same way. By offering to pay half the rate to share, in just 2 months Lyft Line makes up 1/3 of rides on the app in SF. Regulators didn’t believe Lyft when they said that this was part of their long term vision. Oops.
John wants want everyone to be a Lyft driver. The daily commute is people’s least happy time of day, socializing it helps.
US spends $2trillion a year on cars.
RE: entering new markets: Lyft is currently in 65 US cities, and plans to go international early next year. There is a large regulatory component for each launch. They start with legal research, come up with their interpretation and ask themselves “should we launch based on the regulatory structure?” In California, there was a rule that applied to limos so Lyft realized they needed a new category. John decided “we’ll just launch.” Soon after, Lyft got a cease & desist which translated to him as “lets meet and talk.” He asked the city what’s important to them? Is this about protecting existing interests or safety? When he learned it was a safety concern, they asked what the city required in order to form a new category. This communication took over 9 months but new rules were finally created!!
Jeremiah works with big companies like Walmart, BMW & Pepsi who want to try sharing.
Companies are asking themselves how they can be a part of the movement. They see the trend coming: the micro entrepreneur revolution. We are all running our own business & re-engeniring society to become self reliant. Jeremiah tells companies that they are not allowed to use the word ‘consumer’ because we are makers, crowdfunders, lyft drivers and airbnb hosts.
Check out Jeremiah’s the collaborative economy honeycomb that describes 6 industries impacted: goods (Etsy), shared food, shared services (Task Rabbit), transportation, space (airbnb and co-working), and money (bitcoin and crowdfuding) —> VCs are funding these industries.
Also consider the trends of shipping as sharing in instacart, sharing of utilities WIFI with FON, power with Solar Mosaic and healthcare with HelpAround (diabetics help other diabetes). Excitingly – cities are beginning to share with other cities! In Michigan, cities are sharing a sewer cleaning truck that is generating revenues from the rental instead of taxes!
—> 30% of adults are freelancers. Moonlighters as well. it is predicted that 50% will be freelancers in a decade. So that means freelancers will form a union to protect their interests. Jeremiah predicts that we’ll start to see everyone form a guild. The natural order will be to formalize.
Susan studies car-sharing, bike-sharing, employer shuttles and is really into:
Fractional ownership – co-own a car with 2-3 family members or neighbors. That car can be put into a p2p car sharing situation. It is very innovative of Audi to enter into this kind of program. SpinLister shares bike – studies show a 50% reduction in driving due to the use of bike-sharing
SF and BERLIN are cities to watch – they are loaded with sharing.
Saving money means more experience spends and the cost of living goes down. Not financing a car may enable a person to buy a home.
Joe Gebbia chimed in that trust is important to make sharing work.
Why now for the sharing economy? Because the internet needed time to grow up a little bit. There used to be a concern over putting credit card information on the internet.
In the 90′S we got the internet
Then came the critical mass: what do we give them to do? blogs, pictures..
Then they are connected, do we transfer back into the real world again?