Category: Innovation

The sharing economy: a whole new way of living

From accommodation to cars, the internet is turning us from consumers into providers and challenging established business models. We talk to Martin Varsavsky, founder of Fon – the largest Wi-Fi company in the world – and profile two more pioneers, from TaskRabbit.com and BlaBlaCar.com

In 2006, serial entrepreneur and investor Martín Varsavsky – inspired by a conviction that he could cloak the world in free Wi-Fi by encouraging people to share their home connections – founded Fon in Madrid. The company is now the largest Wi-Fi network in the world, with almost 12m hot spots in more than 100 countries.

“My general thinking at the time was that we live in a world in which benefits are only accrued through economic growth and the endless consumption of resources, and that there have to be other ways that are of more benefit to people,” he says. “Why should everyone have their own car when most of the time they are not using them? Think of a marina full of boats. How frequently do those boats go out?”

Today, it has been argued that the sharing economy – which is perhaps best defined as a way of sweating underutilised assets, by building communities around them and turning consumers into providers – has the potential to reboot businesses across most economic categories. Indeed, Forbes magazine recently estimated that total revenues for the sector could top $3.5bn this year, with growth exceeding 25%. However, when setting up Fon, Varsavsky became convinced that people needed a nudge or financial incentive before they'd happily share their assets.

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