Sharing is caring: the modern approach to ownership
Is ownership essential? About the re-using aspect of the circular economy through renting, sharing and servitization.
How wasteful are we?
**Clothes**
Globally, the average number of times a garment is worn before being discarded is just 7 to 10 times – a 36% decrease compared to 15 years ago. Over this period, production has doubled, while usage has decreased. Only 1% of recycled clothes are turned back into new garments (Ellen MacArthur Foundation, 2017).
**Cars**
Globally, according to different estimations, cars are parked at least 92% of the time - typically about 96% - at home or elsewhere, such as at work (RAC Foundation, 2012; Rething Transportation, 2017).
**Office space and houses**
More than one-third (36%) of workspaces (cubicles and desks) in offices worldwide are unoccupied all week and 29% have low usage (three hours of usage or less on a given day). Only 14% of workspace are occupied for five or more hours (XY Sense, 2023).
One in six properties in Europe are vacant, which equals to around 38 million empty homes. This number is even higher in Greece, Portugal and Bulgaria, where one in every four properties is empty (European Federation of National Organizations, 2016; OECD, 2021).
**Furniture**
In the UK, 22 million pieces of furniture are discarded yearly, and less than 1 in 10 people consider repairing their furnishings to extend their lifespan (NLWA,2019). Around 32% of bulky waste is reusable in its current state, rising to 51% when considering items suitable for slight repair. Furniture waste accounts for more than 4% of the total municipal solid waste (MSW) stream in Europe, equating to 10.78 million tonnes. Between 80% to 90% of this waste is incinerated or sent to landfill, while only around 10% is recycled (European Federation of Furniture Manufacturers UEA, 2017).
**Food**
Although it is not a durable good, it is important to remember that in Europe over 58 million tonnes of food waste (131 kg/inhabitant) are generated annually. Households generate more than half (54%) of the total European food waste - 70% of food waste is produced at household, food service and retail levels- (Eurostat, 2023)1.
May I ask it again …
How wasteful are we?
The answer is… A LOT.
And we keep buying more and using less, often opting for goods of lower and lower quality.
How does this relate to the circular economy?
The fact that a lot of goods we buy are used a few times is something typical of a linear economy where goods are produced, barely used and soon disposed of because they are outdated (clothes, technology), expired (food) or slightly damaged (furniture, durable goods).
Lots of the things we throw away haven’t always reached the end of their useful life.
As you may well know, the Circular Economy aims to design out waste, helping manage these issues.
How circular economy can help? Shifting from ownership to access.
This means acknowledging that customers often only need a product for a short period before returning it to the provider or passing it to another user.
Over the past few years, various innovative business models have emerged based on this idea, providing a wide range of products to customers on a short-term basis through rental, subscription, sharing2 or leasing, rather than selling them.
Airbnb, Lyst, Uber, Rent the Runway … do they sound familiar?
Today, renting is very common, not only for technical equipment (as seen in the previously discussed case of Repeat Audio) and sports gear, but also for fashion, luxury services, and more.
The access concept allows for an intensification and extension of the product lifespan by keeping it in use for a longer period. This minimizes waste, creates jobs, and has a positive social impact - something that you no longer want but is still in good condition may be utilized by someone else! Finally, it is also cost savings, for individuals, businesses and the Planet.
VIGGA (DK - baby clothing – rental via subscription)
Vigga is a Danish clothing company that offers a subscription-based service for high-quality children's clothing. The service addresses a common problem, especially for first-time parents, as well as others, which is the fact that babies quickly outgrow their clothes, often wearing them only a few times. Vigga's subscription model allows parents to lease kids' clothes, reducing expenses and increasing the usage of small-sized clothes. Customers receive a monthly package of kids' clothes, and when the clothes become too small, they can be sent back to Vigga, which then provides a package with larger-sized clothes in return. The company uses environmentally friendly textile cleaning processes to refresh the clothes for their next baby user and undertakes the needed repairs. On average, clothing items can be used five to seven times. All the clothing pieces are made from organic fabric and are designed with a circular business model in mind. When an item is in too poor a condition to be passed on to another customer, it is carefully recycled.
VENUU (FI - venues for events – rental via subscription)
Venuu is a Finnish online service founded in 2013 that simplifies the process of finding and renting unique event spaces. The service is free for users looking to book venues, while venue providers pay a subscription or commission fee. The platform offers a diverse range of venues, including unconventional options like oil silos, office buildings, private saunas, and coast guard patrol boats. Venuu operates on a sharing platform business model, facilitating the rental of underutilized spaces, and enhancing resource efficiency by repurposing existing buildings and spaces. Finally, it allows individuals and companies traditionally not in the venue business to earn extra income from their spaces. Socially, Venuu fosters community by bringing people together through unique event experiences.
CORT Furniture (US -furniture – renting)
CORT Furniture offers a service that provides a flexible and convenient solution for furnishing temporary living and working spaces. The service caters to individuals, businesses, and government agencies in need of furniture on a short-term basis, such as students, temporary workers and military personnel. Customers can rent a wide range of furniture and accessories, from essential items to complete packages, tailored to match their style and requirements. CORT offers rental terms ranging from a few months to several years, accommodating varying needs for temporary furniture solutions. Additionally, CORT handles delivery, setup, and pickup, making the process hassle-free for customers.
What are some other innovative business models that promote the circular economy?
All the mentioned cases focus on rental solutions. Alternatives are represented by sharing solutions we are all familiar with, such as sharing mobility and ride pooling, which have the potential to increase the vehicle's capacity usage by maximizing the vehicle's lifespan kilometres and the average number of passengers, while also reducing the environmental impact of transportation.
Sharing and charging – Co Charger
Co Charger is an innovative app from the UK, launched in December 2020 by Joel Teague. It is inspired by Joel’s experience of charging his new electric car at a neighbour’s house and compensating them with £5 each time, He developed an app to facilitate similar arrangements on a larger scale. Co Charger connects electric vehicle owners in need of charging with individuals willing to share their wall boxes3. This can also address the shortage of charging stations, encouraging the broader adoption of electric vehicles.
Thank you for reading until the end. These are only a few examples of innovative and circular business models addressing the “waste issue”.
How can we be less wasteful by adopting rental and sharing solutions? Do you have any personal experiences to share or any case studies you would like to explore in greater detail? To discover more about Servitization as well as second-hand solutions, drop a like and stay tuned!
Keywords: ownership, renting, sharing, reuse
Music pairing: Upside Down - Jack Johnson
Food waste also has a significant impact not only on society but also on the environment: an estimated 8-10% of global GHG emissions are associated with food that is not consumed (Mbow et al., 2019; UNEP, 2021).
You are probably familiar with the notion of “sharing economy” or “collaborative consumption”.
Approximately 12% of global EV charging stations were in public use in 2019. The average station utilization at private, residential charging stations can differ from 30 to 70% (Virta, 2020)