Sharing economy businesses are becoming ever more prevalent in the UK and Europe. London is increasingly a real hub for these businesses and if you live there, it’s pretty likely that you will have used one. From driving a Zipcar or renting a Beds on Board boat to staying in Love Home Swap apartments around the world, we are increasingly comfortable using sharing platforms.
However, it is fair to say that while a hub, London is not yet trailblazing or leading the way as a sharing city. Amsterdam, Seoul and Victoria - to name a few – go one step further, with “sharing” built into these cities’ very DNA, encouraging residents to share as part of their everyday lives. These established sharing cities are forming the inspiration for the UK’s own “sharing pilots”, which are to be run in Leeds and Manchester. So could London ever replicate these examples – and just what is a “sharing city”?
The concept is in its infancy, but the general premise is to afford residents and local businesses ease of access to shared networks on which transport, accommodation, possessions and skills can be shared. Historically the concept of sharing cities are borne out of Scandinavian culture with Copenhagen hosting the launch of co-housing communities in the 1970s – remnants of which still remain. The social project’s intention was to encourage occupants, though living separately, to engage with one and other, interact and share resources. From an economic perspective the model has been found to reduce residents’ consumption and expenditure through reduced importance on ownership. Furthermore from a societal perspective the model was found to promote team-work and evoke a greater community spirit.
Whilst the aforementioned Copenhagen communities attest to a more traditional model, Seoul in South Korea represents an internet-age blueprint for sharing cities to come. Government launched Share Hub in Seoul, an online directory of services across the country, which encourages the sharing of time, space, talents, goods and information. Seoul is a model that exemplifies what a sharing city in the modern world should be – more than just a place where the public has access to private sharing economy businesses, but where government and public sectors are driving adoption.
It is highly likely that the Chancellor was inspired by Share Hub when forming plans introduced with the 2015 Spring Budget around the UK’s “sharing pilots”. The sharing pilots in Leeds and Manchester will have separate focuses; Leeds will be a sharing transport initiative; Manchester will have a focus on health and social care. So what do this look like?
Leeds will be testing the concept with a range of initiatives, which will combine to offer a range of alternatives to traditional transport. These will include apps for local car clubs, bike-sharing alongside buses, trains and taxis. Furthermore local authorities are also exploring a council-run platform to allow residents to share equipment, like vans or lawnmowers, and skills.
In Manchester, sharing economy services will be applied to health and social care, developing community assets, then utilising technology to better connect residents to these services via community hubs.
So what could this mean for London – would a model akin to Seoul or the initiatives being tested further North work for the capital? My prediction would be yes. Londoners are already ahead of the curve in terms of adoption of sharing economy businesses and services. Airbnb, JustPark and TaskRabbit are already becoming household names across the capital.
However, steps still need to be taken in terms of restrictions and regulation that constrain alternative business models to ensure success. Furthermore there is still work to be done around building consumer confidence in sharing products.
Demand for these businesses is simply the manifestation of a desire for new models of ownership and community. Leeds and Manchester are leading the way, but it may not be long before London follows.