The Sharing Economy in 3 U.S. Cities, Part 3: San Francisco

Lucy Gao, Canadian Global Curator, visited various companies in three U.S. cities as part of a Sharing Economy tour sponsored by TheWashington Foreign Press Center,visiting New York, Las Vegas and San Francisco. This is part 3 of a 3-part series showcasing companies she visited in each city, featuring familiar incumbents and new startups to look out for.

Part 3: San Francisco

San Francisco is arguably the largest hub for the sharing economy in the United States, due to its proximity to Silicon Valley, an established tech and startup ecosystem and a municipal government that is proactive about innovation. Laurel Arvanitidis, Director of Business Development for the city’s Office of Economic and Workforce Development, and Jay Nath, Chief Innovation Officer for Mayor Edwin Lee (first of its kind in government) are leading the way for cross-sector integration and innovation. “The government acknowledges the value in the sharing economy, but also has a responsibility to balance consumer protection and new technologies, while also making sure current industries, like the taxi industry, can continue to compete, ” explained Laurel. One example of this is the recent “legalization” of Airbnb, where the government allowed it to adopt an interim agreement while it worked with all stakeholders to come to an agreement that would protect consumers while also allowing these companies to operate competitively. See below for 8 notable sharing companies in San Francisco.

What is it? Airbnb is probably the most well-known company in the sharing economy. Airbnb is a trusted community marketplace for people to list, discover, and book unique accommodations in more than 34 000 cities and 190 countries around the world.
Some insights: According to New York City Manager Wrede Petersmeyer, “Airbnb is adding about a million new customers a month. On a recent night, we hit an all-time high of 425 000 people staying in an Airbnb around the world.” It has reviews in 42 languages, and about two thirds of travel crosses an international border.
Why it’s relevant: This year, 600 000 people will have stayed in New York, spending $768 million. This is significant because guests don’t only stay in tourist spots like Times Square, but in all boroughs. This boosts local community economies that previously would not see many tourists. As well, given the recent legalization of Airbnb in San Francisco, the company is at the forefront in working with countries and cities in passing progressive laws, educating regulators and instigating policy change.

What is it? Lyft is a peer to peer ride-sharing company. They’re all about being “your friend with a car,” allowing users to get a friendly, affordable ride whenever they need one.
Some insights: According to Mike Masserman, Director of International Government Relations, “Lyft will be international in 2015.” Lyft is currently in 62 cities in 30 states in the U.S. only. Lyft has a diverse user base, not just millennial early adopters as one would assume, but also seniors, parents, and people with disabilities.
Why it’s relevant: Lyft aims to complement current transportation systems and be a part of the long term fabric of communities and cities. It has an ethos of collaboration and community, and as such, its strategy is to proactively talk with regulators and discuss policy that works. Its business model is strictly peer to peer, which has endless growth, as anyone who passes Lyft’s safety standards can be a driver, allowing them to augment their income and pursue their passions.

What is it? Uber is a ride-sharing app that connects riders to drivers, whether that’s through uberX (peer to peer), uberTAXI, the latest uberPOOL (carpooling), the original uberBLACK, uberSUV and uberLUX.
Some insights: Uber is in over 200 cities in 45 countries. According to Arun Sundararajan, Professor at NYU Stern School of Business, “There are currently 10 000 Uber vehicles and 14 000 taxis in New York City. Next year, there will probably be more Ubers than yellow taxis.” Uber also provides a business portal for companies to keep track of employee expenses, cutting out waste and inaccuracy and solving a large pain point for companies.
Why it’s relevant: Uber aims to take cars off the road and provide safe and reliable rides for its users. While it has been consistently dealing with driver protests and regulatory issues in current and new cities (recently Philadelphia and Las Vegas), it’s undeniable that Uber’s reach and aggressive expansion will keep it relevant and top of mind for consumers globally.

What is it? City Car Share is the largest non-profit car sharing organization in North America. As a non-profit, they are focused on community-based programs, environmental impact, and equality and affordability for citizens.
Some insights: They have a fleet of 400 cars in 250 locations, and maintain the greenest fleet in North America. With hybrid and plug-in electric cars, City Car Share has made a significant environmental impact, saving 650 million pounds of CO2 since it started. 50-60% of users got rid of a car or delayed buying one.
Why it’s relevant: City Car Share aims to maintain the environmental and social benefits that are the basis for transit-oriented car sharing. They advocate for more research on the environmental impacts of various car-based mobility systems: car-sharing, one-way car-sharing (Car2Go), P2P car-sharing (FlightCar), and transportation network companies (Uber, Lyft).

What is it? Science Exchange is a marketplace for scientific collaboration, allowing scientists to order experiments from the world’s best labs.
Some insights: Science Exchange applies a 3-9% service fee depending on the size of the transaction. OncoSynergy, a biotechnology company in San Francisco, outsourced all of its experiments on Science Exchange and will be using it to test a drug to help treat Ebola.
Why it’s relevant: Scientific equipment is very expensive, while also not being used at maximum capacity. Labs can now make use of excess capacity of their machines, and scientists have a more accessible and affordable alternative for their experiments.

What is it? Feastly connects adventurous diners, passionate community members and tasteful food enthusiasts to share authentic dining experiences.
Some insights: While Feastly operates in 40 countries, the main markets are Washington DC, New York City and San Francisco. They recently just launched a million dollar insurance product to protect hosts, and have a strict vetting process to build trust and ensure the best hosts and experiences. Feastly partners with the Feast Worldwide, providing a platform for a series of global dinner parties.
Why it’s relevant: Noah believes that when you make food for people, you want to express yourself and add a personal touch. This can be difficult when you’re working for someone else. Feastly empowers chefs all over the world to make money, build their brand and meet new people.

What is it? Fitmob combines the power of community with the convenience of a mobile platform to create a fun, affordable and rewarding workout experience. There is a trend towards self-organizing communities, and Fitmob provides that platform for the fitness community to connect.
Some insights: Fitmob has a membership model of $99/month, which allows unlimited use of all gyms and classes in the Fitmob network. Anyone with the skills can sign up to be an instructor, however, according to CEO Raj Kapoor, “People are paying for the workout, not the app, so it’s very important that trainers are curated and vetted to ensure quality.”

Why it’s relevant: Raj states, “Gym membership globally is a $75 billion business. Half these people don’t use the gym and many who do aren’t seeing results. Some gyms will purposely price memberships so low, like $20/month so people buy them and forget about them.” Fitmob wants to change this. Raj worked with Tony Horton to reinvent conventional fitness and focus instead on community and bringing people together to motivate each other to exercise.

What is it? Udemy is the world’s largest destination for online courses. Their mission is to help anyone learn anything online.
Some insights: There are three main categories of courses: technology, design and business. Udemy boasts over 20 000 courses from over 10 000 instructors around the world, and over 4 million students.
Why it’s relevant: “Udemy provides an ecosystem to teach online that never existed at this scale before,” states Dennis Yang, CEO of Udemy. In a traditional school, you can’t change your teacher if they’re not performing well. But with Udemy, students can determine if a teacher succeeds or not. This gives instructors the incentive to teach the best classes.