Earnings on Demand is re-writing the Swedish Model.
What is really «On demand»? When we look at the on-demand mobile universe, it’s important to start with a definition. On-demand is a thematic category which encompasses global startups in a lot of different verticals. So the definition we use is: companies that provide an application that aggregate demand on mobile devices but fulfill that demand through offline services.
SWEDISH MODEL: EMBRACING THE SHARING ECONOMY RISKS
Although the much-admired Swedish model with its
- well balanced economic form of individualism and collectivism
- solid, self-organized labour and welfare provision
- expansion of the large Swedish multinationals
…has served us well in the past few decades by enabling Sweden to become some of the wealthiest and happiest nations in the world, it starts showing cracks…
Dramatic shift from manufacturing to services and hyperactive investing for the future growth turned Scandinavia into a sharing platform hub. Traditionally tech-savvy Swedes are embracing the sharing economy trends. Regulators are trying to comprehend the social benefits and risks of people working and earning money on demand. While «on-demand» trend itself is dispersing further beyond end users-consumption into more conservative fields such as manufacturing and healthcare.
Global economic integration undermines the effectiveness of national corporate regulation regimes, so the Swedish Government has instructed a number of inquiries to map out the sharing economy, analyse the legal status of different users and examine the need for measures to promote positive developments in the main fields of sharing economy:
Taxation published 31.10.2016
Taxi & Ride-sharing finished 30.11.2016
Competition & efficient markets — to be published 1 March 2017
Sharing Economy and consumers' rights protection — to be published 31 March 2017
Labour Policies — to be published 31 October 2017
Crowdfundung — to be published 29 December 2017
WHAT’S GOING ON IN SWEDEN?
As we see 2016 turned out to be the leaping year of governmental examination of perspectives for sustainable consumption (which is perhaps «the new Nordic model»)?
The sharing economy is now seen as a new social contract where trust is created through collective demand and access. However trust can not be gained without thorough understanding of the
- Pain points of the platform developers
- Regulation response to their needs
- Political solutions that are able to ensure a long term profitable digital economy
Last but not least is the swedish labour model, that has to adapt to the recent gig changes What’s indeed happening to the labour market when the largest taxi firm owns no cars, the largest vacation firm owns no property and the largest retailer owns no stores.
How long before the largest professional services firm has no staff?
BizzGrid gathers Nordic sharing economy community to comprehend the new rules of the game. The previously successful framework for ongoing business development e. g funding the journey, winning in the medium term, and securing the right team, organization, and culture—is practically not enough without a regulation consistency from day 1.
FOMO VENTURES & INCUMBENTS HEARDING INTO ONDEMAND STARTUPS
Platform businesses and regulators are however not the only players hyping up the «on-demand» buzz, we are now observing a growing class of investments, M&As and a whole new swirl of on-demand culture among incumbent businesses.
All types of venture capitalists can be found in the list of sharing opportunities, tiny or large — it’s the same FOMO factor (fear of missing out) for them and established corporations that keeps them alert and responsive to the mass-access economy.
Tech startups like Uber and Airbnb comprise the majority of on-demand firms. But major corporations actively exploring the gig-field by building exciting collaborations like GM’s investment and partnership with Lyft, and hotel giant Accor’s recent acquisition of Airbnb competitor Onefinestay, Volvo and Wallmart collaborating with Lyft and Uber.
Companies are rapidly embracing the on-demand economy and transforming (or trying to adapt) their service and delivery systems to meet consumer demand, or find themselves disrupted by those who do embrace this shift first.
This requires them to rapidly ensure they are accessible, secure, and mobile-friendly, while leveraging the potential pool of providers who would like to participate in the on-demand economy. In Sweden, we have Easypark can boast a nice case of traditional business adapting to the trend.
One thing is certain: the on demand market is growing size and quality -wise, and it is not just for the young and wealthy.
SO WHAT’S NEXT? PERSPECTIVES OF THE ON-DEMAND INFRASTRUCTURE & SERVICES
Where is the next innovation of on-demand coming from?
On demand Healthcare? This is sort of a next frontier for on-demand as we are observing startups tackling a wide range of areas from traditional not just pharmacy delivery or on-demand doctor calls to physical healthcare powered by on-demand.
Rapid innovation and service deployment has fueled the need for a better production option for individuals and small businesses: On-demand Manufacturing.
This model seem to be totally applicable for large heavy manufacturing industries, as it makes it possible for vendors to provide support for the production all the way from the initial concept to final product delivery to the customer.
BizzGrid gathers Swedish sharing economy community to act and react. By bringing together Nordic pioneers of the industry, this full day day event will tackle the most pressing issues to date and give you first hand insights in how best to position your company when entering into and growing within this collaborative market.
Join Earnings on Demand Industry Talk to get updated on the Swedish sharing economy status quo. Relevant for startups, mature businesses, regulators, politicians, investors and users.
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