FLOOW2, the world leader in facilitating the sharing economy for companies and organisations, publishes promising financial results.
As the founders of FLOOW2, the international B2B sharing platform, we are seeing an encouraging trend in the market. Our thinking is growing increasingly circular and we are, slowly but surely, becoming more active in the circular economy. Further evidence of this shift is the growing media coverage, the goals that public bodies set themselves towards creating a Circular Economy, the increase in circular research and education and the growing number of Green Deals. But above all, we base our observations on the expanding user base of our services, the rise in the number of closed sharing platforms that we set up on behalf of companies and large organisations as well as the increasing number of transactions on these sharing platforms.
One of the frontrunners in the Netherlands is the Albert Schweitzer hospital, which manages to make more effective internal use of products, equipment and staff through a closed sharing platform. Since last year, at business parks in the towns of Tilburg and Waalwijk, companies have been engaged in mutual sharing of assets, surplus materials and services. Disability care organisation ’s Heeren Loo is sharing items, products and services between around 100 sites across the Netherlands so they can make more sustainable use of the means at their disposal. And in Belgium, the entire building industry has been sharing building materials, cargo space and surplus materials since June 2018, using the Werflink.be sharing platform.
A circular model with financial benefits
In 2018 the number of users of our sharing platforms reached 17,320 – representing a 265% increase. Thanks to this increase in users and transactions we are now (finally) able to quantify the financial value of asset sharing by companies. These results are derived through monitoring transactions: we asked our users about the turnover they achieved at the point of extending or removing an advertisement.
We have analysed the data of all active accounts. These include the accounts of users employed by an organisation that uses a closed sharing market place, as well as the accounts owned by a business community (a business park or a professional association, for example). The data shows that, for their company or community, active users produced an average financial value of €2,235 per user. For FLOOW2 Healthcare (hospitals and care organisations) this average value per active user amounted to €3,052.
Example: an average company with a staff of 5,000 has its own internal sharing marketplace so it can deploy its capacity in a smarter and more sustainable way. On the assumption that 25% of the employees is actively using this sharing marketplace, the earning potential for the entire company amounts to 1,250*€2,235=€ 2,793,750. For an organisation in the care industry, the figure is 1,250*€3,052=€ 3,815,000.
Naturally, the figures quoted above only reflect the average of a number of very diverse companies with an even more varied range of resources on offer: from printer toners with a cost running into only two digits, to highly sophisticated equipment worth thousands of euros. Nevertheless, what these numbers make abundantly clear is that, for organisations, a well-implemented sharing marketplace offers huge additional opportunities for revenues as well as savings. The more attention you pay to sharing, the more you can earn or save for your own organisation. Input is output!
However, we ought to bear in mind that these are the results achieved by the early adopters, the frontrunners in other words. We are merely at the eve of a successful transition towards a sharing economy. The more this new way of entrepreneurship becomes ingrained into our day-to-day running of the business, the higher the financial, social and ecological value that can be achieved by companies and organisations, both for themselves and other stakeholders. Provided that the transition curve continues to develop in a positive way over the coming years; if more and more companies start doing business in a circular manner and if the sharing economy becomes part of the normal order of the day, the number of active users will continue to expand. These values could well triple, quadruple or multiply to an even greater extent within a short period of time.
We can only attain a circular economy by living it
The shift towards a new economy starts with ourselves, with doing, daring and trying, and by working together to create a new system in which we use products and raw materials in a smarter way. Only then will we be able to inhabit a future planet that is healthy, with a strong and sustainable economy. Moreover, the circular economy, asset sharing in this case, offers great financial potential.
As entrepreneurs in the sharing economy we have long been convinced of the huge financial value of the sharing economy for professional organisations and companies. Moreover, the figures are now substantiating this. Sharing capacity is a smart and practical way to manage your company in a more circular way, without complicated and costly transformations of your business model or production process.
So, have you finished talking, workshopping, report-writing or round-tabling on the issue of the circular economy and are you ready for action? Don’t wait until tomorrow, take the lead and start sharing. And above all, be bold – if in 2019 you still have resources laying idle, you are robbing your own wallet.