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PwC Up front | Issue 5 | Harnessing technology

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8 Up front Summer 2014 In conversation with Andrew Reid Tahir Ayub is Managing Partner, Markets & industries, and former Private Company Services (PCS) leader of PwC Canada. this role encompasses PwC market strategies and the National Priority Clients program. tahir is also a business advisor to clients in several industries. All about the collaborative economy the collaborative economy is a fast- growing movement whose members obtain goods and services from each other online – or even make them outright. in March 2014, Vancouver- based insight community technology company Vision Critical and San francisco-based consulting firm Crowd Companies released the first major profile of this mainstream phenomenon. the report identified three main drivers of the collaborative economy: growing consumer interest in sharing, economic factors such as rising production costs and technologies iike mobile devices and social networks. Based on survey of some 90,000 people in Canada, the u.S. and the u.K. from October to December 2013, Vision Critical and Crowd Companies broke the collaborative economy into three customer groups: 1. Non-sharers these consumers, who make up about 60 per cent of the Canadian and u.S. population, have yet to engage in the collaborative economy. But many of them plan to try it in 2014. 2. Resharers this group buys and sells pre- owned goods through established online services such as craigslist and eBay. resharers comprise 16 per cent of the Canadian and u.S. population; many of them intend to try other kinds of sharing in 2014. 3. Neo-sharers in 2013, neo-sharers used at least one of the latest generation of sharing sites and apps, which include Kickstarter, liquidSpace and taskrabbit. they make up 25 per cent of the population in Canada and 23 per cent in the u.S. Source: Sharing is the New Buying: How to Win in the Collaborative Economy, Vision Critical and Crowd Companies Delivering everything from crowdfunding (Kickstarter Inc.) to meeting-room rentals (LiquidSpace Inc.), the collaborative economy is growing fast. Vision Critical and Crowd Companies divided it into 11 categories of providers. They also identified three kinds of customer, from those who intend to start using sharing services to patrons of the newest websites and apps. Given survey respondents' willingness to try sharing or explore new categories, the collaborative economy could double in size this year. "We found that every single category has a very small percentage of market share, but all of them are growing at 50 per cent or more year-over- year," Reid says. Another tantalizing statistic: sharers skew younger (ages 18 to 34) and more affluent. "These are people that are here to stay, and these are people that have money to spend," says Reid, whose 700-employee company has offices in the U.S., Europe, Asia, Australia and South Africa. Facebook and other social media helped lay the groundwork for the collaborative economy by allowing digital peer-to-peer connections, Reid explains. That foundation has enabled people to share physical goods because they can create trust through their online networks. For Reid, who founded Vision Critical in 2000, social change is driving the move toward sharing too. "You're going to see this accelerate as millennials get older The leaders

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