The Quid Pro Quo Economy
How can the sharing economy evolve by harnessing the power of transparency, connection and community?
As technology brings us closer together and our boundaries of ‘community’ expand, companies are challenging the norms of the emerging sharing economy - creating transparent, two-sided business models built around relationships where all parties contribute and benefit from their engagement.
Proquo, a joint venture between NAB and Telstra, is giving small businesses the opportunity to swap and share services with each other in a modernised barter and trade platform. Services are bought, sold or traded quid pro quo, enabling small businesses to form a community where they can use their services as currency and help to grow each other’s networks via transparent, two-sided transactions.
While Peer to peer insurance startups like Huddle Money and Lemonade are incentivising their customers to act more responsibly through rewards platforms based around community engagement & financial transparency.
Australian company Huddle Money wants their community to work together to keep costs down for everyone. If they can prove they have made fewer claims in the year than those in the average Australian insurance company, customers will be rewarded.
Similarly, Lemonade, a mobile first insurance platform doesn't rely on third party firms or brokers but instead works with the notion that honesty is the best policy. They charge a flat fee for their service, build communities of peer groups by linking their customers to a common cause they care about, and return any unclaimed money at the end of the year to these causes.
The intention in both instances is to discourage fraudulent claims being made by demystifying & personalising the impact on the wider community.
These companies all operate on the premise of building trusted and transparent communities at the heart of their business - offering not just transactional value, but the emotional reward that comes with ‘giving back’ which has been more commonly associated with non-for profit organisations. In doing so, they are challenging the norms of existing service industries by establishing a sense of community that benefits all parties rather than being a one directional transaction.