Millennials and the $335 Billion Sharing Economy

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Sharing Economy
Millennials and the $335 Bn

Youth, Students, Teens, Millennials, Generation Y, Generation Z
TOTAL YOUTH RESEARCH

Millennials and the $335
Billion Sharing Economy
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is much less important than
the nature of
the content
the act of sharing itself

that means…

the winners
in this new
economy
will be…

Those that focus on
…JOINING
THE DOTS

So, let’s look
inside the
Sharing
Economy

1. Market Size

$335 billion
by 2030
(source PWC)

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Creating a
few young
billionaires
along the way

…and some
crazy
valuations

WeWork : biggest player in CoWorking

UBER is the biggest player

AirBnB : biggest player in Travel

UBER > Facebook?

so, let’s look at
business models
inside the
Sharing
Economy…

1. Market Size
2. New Business Models

We need better
solutions to
Everyday
Problems

The Sharing
Economy
touches many
vertical sectors…

e.g.
car sharing

Models focused on consumer pain points

Simple solutions to everyday problems

coworking
spaces…

shared
accommodation

Understand this
shift as one from
Loudspeaker to
Telephone
models

LOUDSPEAKER MODEL TELEPHONE MODEL

…joining
the dots

…and
young people
are at the
forefront
of that change…

Millennials are the change makers

CHANGE
Mobile Millennials Changing Business
Access Experience
Mobile Customer
Experience
The Sharing
Economy
AutoHealth Retail Finance Travel
Millennial
customer
expectations
Mobile
enabled
disruption
Vertical
sectors
affected
Lookup
Culture

“Here is a generation
that has grown up
comfortable with
the idea of sharing.
What’s interesting is
that while Gen Y is
comfortable with
that concept, Gen
Z will expect it.”

So, what exactly
do young people
want?

1. Market Size
3. New Consumer Drivers

Sell
not the
the EXPERIENCE
THING

Shared Experience
Access
Experience
Ownership
Things
21st Century
Gen Y & Z
Traditional
Post-War Values

57% said
“Access is the new
Ownership”
(source PWC 2014)

Millennials comfortable with the idea

78% of Millennials
said they would rather
spend their money
on Experiences not
“things”
(source PWC 2014)

68% said they were
willing to rent or share
personal items
(source Nielsen 2014)

Let’s look at the key
Economic and
Social Drivers of
Shared
Experience…

1. Market Size
4. Economic Factors

We are still here

86% said the
Sharing Economy
made life more
affordable
(source PWC)

Loaded with
debt, young
people are
questioning
everything…

including
traditional
rites of passage,
like car
ownership…

53% of Millennials
said they would participate
in car sharing programs
(source Zipcar 2013)

21-34 year olds bought
27% of new cars in the US  
(down from 38% in 1984)  
(Source Shareable 2014)

http://www.google.com/trends/explore#q=car%20insurance
Data on Google searches for “car insurance” shows a
steady decline.

http://www.google.com/trends/explore#q=carsharing
Yet, Google searches for “carsharing” continues to
increase.

51% said membership
of car sharing programs
meant they didn’t have
to buy a car
(source AlixPartners 2014)

same
different
EXPERIENCE
THING

Car Ownership is a “Problem”

The average American 
uses their car only 8%
of the time
(Source New Dream 2014)

and it’s not just
the cost of
owning “stuff”
but also how
we work…

82% of Millennials said
businesses will be
completely built by virtual
teams within 10 years
(source Afﬂuence Collaborative 2014)

40% of the population will
be working independently
by 2020
(source Emergent Research 2014)

Now, let’s go
deeper and look at
the social and
emotional drivers
of The Sharing
Economy

1. Market Size
4. Economic Factors
5. Social Isolation

We are
by design
SOCIAL

“30 years ago, extreme
sports were rare
because young people
didn’t need them: they
played on construction
sites, ate peanut
butter sandwiches and
cycled without
helmets. Heck, they
even went to school
when it snowed.”

We are losing
contact
OFFLINE
ANALOG

Not selling accommodation but friendship…

in play and
in work

84% of Coworkers said
“Interaction with People”
was the most important
aspect of Coworking
(source Deskmag 2014)

80% of Coworkers said
they were “less isolated”
than before using
Coworking spaces
(source Deskmag 2014)

70% reported feeling
healthier in a Coworking
space than in a traditional
ofﬁce setting
(source OfﬁceVibe 2014)

and young
people are
turning to each
other to make it
happen…

1. Market Size
4. Economic Factors
5. Social Isolation
6. New Dynamics of Trust

“As marketing is the
key difference
between success and
failure, we are now
witnessing the birth
of business models
where the
marketing is
baked into the
service day one.”

it’s all about trust

young people
turn to each
other for
inﬂuence and
opinion

78% said online
interactions made them
more open to the idea
of sharing economy
(source Shareable 2014)

…because
in youth
marketing
people > brands

thank you

SOCIAL ECONOMIC
TECHNOLOGYBUSINESS
Decline in social
interaction
esp. unstructured,
ofﬂine, analog face-to-
face interaction
Growth in Sharing
Economy business
models. Importance of
peer-to-peer
recommendation and
word of mouth
Access to information
via mobile and online.
Growing ability to
implement and
acceptance of peer
based review platforms
Pressure on ownership
of material goods. Rise
in personal / student
debt for Gen Y & Z
GROWTH IN
SHARING
ECONOMY

Get the ulBmate
guide to youth
generaBons Y & Z
Get answers to these 3 quesBons:
Who are they?
What do they want?
How do we give it to them?
www.totalyouthresearch.com/total-‐youth-‐handbook

Millennials and the $335 Billion Sharing Economy

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