This whole idea of, like, every time you want something, having
to spend money, I mean, that’s kind of like an old-school idea. As a futurist, I’m of the mindset that you
won’t really buy anything, and people won’t own anything and that’s just how
the world will work.
Buying stuff? It’s so
last century. The internet has made distribution so cheap and convenient, and
made it accessible for so many more customers, that it has opened the way for
models that sell access rather than products. Aaron Perzanowski, a professor at
a University in Ohio and author of The End of Ownership, said: “There’s no
doubt the notion of ownership is in decline, and we’re likely to see this trend
continue.”
These forces have been at
work for years. What has changed is that the psychological barriers that have
long held them back — the fixation with ownership — have begun to crumble. This
is partly due to companies simply getting better at offering compelling
services. It is also about demographics. The biggest section of our Z Tyre
subscription programme are customers are aged between 25 and 45 — Generation X
and Millennials.
Meanwhile, economic needs have become more acute as the
proliferation of smartphones has accelerated the death of old models. Why buy a
morning paper if you can scroll through the news before you get out of bed? The
question is, how widely those dynamics can be applied and how quickly they will
take hold. Well let’s look at the
entertainment industry which was transformed by the file-sharing phenomenon Napster. Spotify this summer announced that more than
60m people pay a monthly fee for access to its library of 30m songs. That surge
has coincided with the revival of the industry. This year is set to be the
first since 1999 — when Napster burst on to the scene — that the industry will
actually record consecutive years of revenue growth. Netflix launched its film
streaming subscription operation 10 years ago, and this summer it surpassed
100m subscribers.
Technology’s ability to
bend the concept of ownership is seeping into other, unexpected corners of life
— such as cars. The typical automobile sits idle 95% of the time, yet most
people would rather it stayed parked in the garage than hand the keys to a
stranger. Turo was founded to change that. The San Francisco company connects
people looking for cars to rent with owners willing to lend. Nearly 180,000
people have put their cars up for hire on the site, up from the fewer than
5,000 it had lured in 2012, the first year of nationwide operation. Chief
executive Andre Haddad said shared ownership helped to alleviate the cost of
buying and maintaining a car. “We can make the car an asset for the first
time,” he said. Last month, Daimler led a $90m financing round in the company —
its bet on the future of car sharing. You have also many major car
manufacturers, like Porsche and Hyundai offering subscription services for
cars. And now not just cars but even
tyres can be subscribed for with Z-Tyre’s world first tyre subscription
service.
As technology becomes
more deeply ingrained into products, the very notion of what a product is, and
where its value lies, gets muddied. When Hurricane Irma was bearing down on
Florida last month, Tesla made a striking move. It remotely lifted the
battery-charging constraints on some of its cheaper models to help people who
were desperately trying to get out of town before the hurricane hit. The cars
all had the same physical batteries. What that showed is what’s important isn’t
the product, it’s the code, and it also demonstrated that Tesla can do the
exact opposite. If you haven’t paid your bill, maybe they cut back your battery
capacity. Even with these things in our possession, we don’t have control in
the way we might expect.
So if buying stuff is
over then one has to wonder what Amazon, the biggest seller of stuff on the
planet is doing about this. The answer –
PRIME!! I see Amazon bundling more and more
into Prime. The opportunity for Amazon
is to get hundreds of millions of people, or even a billion people, paying $10
a month for a bundle of services and effectively controlling more and more
touch points. And you know if Amazon is getting into it then it really is the
future!
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