The Abundance Economy – Where the Long Tail Meets the Blue Ocean (Sept 2014)

The Abundance Economy – Where the Long Tail Meets the Blue Ocean (Sept 2014)

Executive Summary The massive global network of highly connected individuals created by Web 2.0 companies laid the foundation for the emergence of a diverse and self-sustaining ecosystem that enables people to transact beyond the depths of the corporate ocean: the new Abundance Economy. These companies are accessing not only “blue oceans” of market demand, but discovering new “long tails”, with no capital or time constraints, leading to an abundance of both demand and supply. The Abundance Economy is comprised of companies with two-sided markets that enable people and businesses to monetize under-utilized/latent assets, goods, and services by providing them with structural and customer capital. We categorize companies based on the source of their value origination into the following five classes: Assets, Goods, Delivery Services, Commodity Services, and Specialized Services. Introducing copianomics: the science of choice under abundance. Under the laws of copianomics, the Abundance Economy companies have the potential to achieve accelerated value creation through accessing multiple supply and demand side growth levers to achieve superior unit growth and comparable sales growth. In six years, Airbnb has created a long tail of over 800,000 listings, surpassing the 690,000 hotel rooms of nearly century-old hospitality company, Hilton Worldwide. But given the exponential size in the US alone of the long tail relative to the head (e.g. 4.9 million guestrooms represent less than 4% of the 133 million personal homes) and the fact that Airbnb only has 148,000 listings, or 0.1% penetration of this tail, its potential to disrupt the $163 billion lodging industry is massive. And Uber, which was founded only five years ago, has expanded to 205 cities in...
Could LinkedIn Become the Uber for Professionals?

Could LinkedIn Become the Uber for Professionals?

Here is something to think about: could LinkedIn become the Uber for Professionals?Just like Uber empowers taxicab drivers with the freedom to work when and where they want, wouldn’t it be great if LinkedIn could enable professionals to do the same… Last week I had a great call with Tristan Pollock, the co-founder of Storefront, about how his company is revolutionizing the Commercial Retail Marketplace and creating a “Pop-Up Retail Market” by unbundling retail space in terms of time (unbundling the 5 to 20 year lease term into a daily, weekly, or monthly rental license) and space (partitioning off square footage). In the same manner, perhaps LinkedIn could revolutionize the Professional Talent Marketplace and create an on-demand “Pop-Up Professional Talent Market” by unbundling professional talent in terms of time (unbundle the traditional long-term employment agreement into hourly, daily, weekly, or monthly project assignments) and space (professionals could work virtually for a series of companies instead of just for one company at its office). And just as Storefront matches supply (retailers, brokers, and landlords that have available space) with demand (artists, designers, brands that are looking for space), couldn’t LinkedIn also match supply (i.e. professionals with leveraged skills that have available time) with demand (i.e. companies seeking intellectual expertise on a specific project). The magic of Sharing Economy companies like Storefront and Uber is that by harnessing technology to create a two-sided Social Sharing platform, they are able to empower individuals and businesses to monetize their idle/under-utilized assets by providing the underlying Process Capital, or what Thomas E. Stewart refers to in his book “Intellectual Capital”, as Structural Capital and Customer Capital. However, LinkedIn would differ from Storefront and Uber as...
Why There’s An ‘Airbnb’ for Just About Anything

Why There’s An ‘Airbnb’ for Just About Anything

Originally published: Yahoo Finance – The Fiscal Times – By Marine Cole July 8, 2014 6:00 PM The success of Airbnb and Uber has unveiled dozens of startups hoping to cash in on the sharing economy, a.k.a. collaborative consumption. There’s now an Airbnb (and an Uber) for almost everything, as new startups are simply copying Airbnb’s or Uber’s formula while focusing on different products. Airbnb, which allows people from all over the world to rent their homes to travelers, has been valued at about $10 billion, following a $475 million round of financing in April. Meanwhile, car-sharing company Uber was valued at about $17 billion last month. “The revolutionary power of Airbnb and Uber comes from their ability to harness technology to create a social sharing platform that facilitates trust by creating transparency and dual accountability,” wrote Barbara Gray, an analyst with Brady Capital Research, in a post last month. At the sight of such valuations, programmers and entrepreneurs from Silicon Alley to Silicon Valley have dollar signs in their eyes, hoping they, too, can take advantage of the trend. Here are a few examples based on the Airbnb model: Boatbound: for boats Nearbox: for storage Hipcamp: for campsites Spare Chair: for workspaces Airpnp: for toilets (you read that right) SPOT Park: for parking spots Suppershare: for kitchens and meals Here are few examples based on the Uber model: LawTrades: for lawyers Bannerman: for bodyguards Massage: for massages Canary: for cannabis delivery Minibar: for alcohol delivery Worthee:  for dog walking While not all of these startups will achieve multi-billion valuations, of course, many experts believe there’s plenty of room for several more social sharing sites. “I have no doubt...
Why Uber & Airbnb Sit Atop the ‘Social Economy Pyramid’

Why Uber & Airbnb Sit Atop the ‘Social Economy Pyramid’

Originally posted in bostinno.streetwise.co · by Nate Boroyan – City News Writer 06/22/14 @4:58pm in City News As of June 22, Barbara Gray, an equity analyst and founder of Brady Capital Research, has seen her article, “Social Capital: The Secret behind Airbnb and Uber,” tweeted over 1.2 thousand times; garner 2.1 thousand Facebook “Likes;” and shared another 8.4 thousand times on LinkedIn. Gray’s article breaks down the “Social Economy Pyramid” (scroll down) and analyzes three levels of companies that operate within it: Social Mission companies, Social Marketplace companies and Social Sharing companies. Gray queries: How is it that Airbnb and Uber have been able to build thriving ecosystems in just over five years with such significant scale and influence that they are now valued at $10 billion and $12 billion? And how have these companies become such a disruptive force that they are the target of deafening protests from the highly ensconced hotel and taxi industries in cities around the world? The answer, she says, is social capital. According to Gray, “the higher a company moves up the Social Economy Pyramid, the faster the rate of value acceleration as they are able to achieve a higher level of disruption and access multiple social value drivers.” And social sharing companies Uber and Airbnb, the quickest to reach the $10 billion valuation mark, sit atop the pyramid. Why? Because Uber and Airbnb, Gray explains, are able to “access three social value drivers: Advocacy, Connection, and Collaboration.” Continues Gray, “The revolutionary power of Airbnb and Uber comes from their ability to harness technology to create a social sharing platform that facilitates trust...
Social Capital: The Secret Behind Airbnb and Uber

Social Capital: The Secret Behind Airbnb and Uber

Barbara Gray, CFA – June 4, 2014 – When I was thirty and single and living in New York City, I had a dream: to return one day with my husband and push our baby in a stroller through Central Park. A few weeks ago, albeit more than a decade later, my dream came true. But we didn’t stay in a hotel and travel by yellow cab, instead we used Airbnb to book a guy’s condo on the Upper East Side and we travelled by Uber to the airport. Ironically, although I have been on an intellectual journey for the past four years developing my Social Capital investment thesis, it was only when I undertook this physical journey (I travelled East to speak at the CFA Society Toronto event “Social Media’s Impact to the Investment Process”) and used Airbnb and Uber for the first time, that I realized the radical power of Social Capital. How is it that Airbnb and Uber have been able to build thriving ecosystems in just over five years with such significant scale and influence that they are now valued at $10 billion and $12 billion? And how have these companies become such a disruptive force that they are the target of deafening protests from the highly ensconced hotel and taxi industries in cities around the world? Two words: Social Capital. In this new Social Era of transparency, connectedness, and stakeholder empowerment, social media exchanges are acting as catalysts to accelerate the formation of the following forms of Social Capital between and amongst its stakeholders (i.e. employees, customers, business partners): Bonding Capital: formation of strong ties....