Objectives
In our Western civilizationcontext, the vast majority of the objects stowed by citizens in theirhomes are used in a very seldom way. From the drill to dedicated party or gourmet sets, our shelves and cellars are full of objects we do not use more than a few hours per year. It has been highlighted[1]that only 1% of objects we buy are still being used after 6 months.
This is causing a major environmental problem, in Europe and other “developed” countries because the overconsumption of objects turns our society away from circular economy while impacting the planet heavily in terms of resources depletion, GHG[2] emission, air-soil-water pollution…
Since existing rental solutions and P2P[3]platformsdid not manage to overcome that issue, there is a business opportunity for a broader service of“Shared Object Library”: USITOO intends to ease sharingof most of the objects we use less than 20 timesa year. Typical categories include sport equipment, cooking, gardening, DIY tools, ICT equipment, furniture, art, car equipment…
Objectives / Expected Outcomes- Overall ambition: reduce the numbers of unused objects in European households
- General objective: lower the environmental footprint caused by these objects
- Reduce resources consumption & waste production: avoid manufacturing of 5 000 tons of objects by 2020 (45 000 tons by 2024)
- Reduce GHG emissions by 250 ktCO2e in 2020 (2200 ktCO2e saved by 2024)
- Vision to extend the scope of the sharing economy (already in place for high-cost objects such as cars) to day-to-day objects as a common practice in European cities
- Goal to create local resilient (aka “green”) jobs
- Increase objects’ life duration through extensive repairs (life duration x 3)
- Increase usage ratio of objects through sharing within local communities (use ratio multiplied by 5)
- 90 jobs created by 2020 (800 jobs by 2024)
- Ambition to quickly disseminate via branches in all major European cities and have a strong mass effect by serving many citizens
- Community of 50 000 users by 2020 (2024: 400 k)
- 520 000 yearly transactions in 2020 (2024: 7 M)
- Repository of 170 000 object in 2020 (2024: 1.5 M)
Concept
In a nutshell, here are the key operatingprinciples of USITOO to establish a library of shared objects with a delocalised lending system:
Key elements of the solution, along with user-driven requirements read as follows. Aspects pointed out by indicate key innovations of the system. These innovations are social and behavioural (more than technical).
/ USITOO objects- Objects are owned by USITOO: we are responsible for making them last as long as possible
- The range of objects is almost infinite as it grows based on varied user needs and demands
- Objects too big for the trunk (of users car)are delivered directly at the home of the user
/ There is one central USITOO warehousefor every city in which we operate
- To serve 15 000 users, it accommodates about 60.000 objects, while other objects are in “garages” (see below)
/ USITOO users pay a monthly fee of 15 € [4] per month and
- Use the platform to browse the objects catalogue as well as to manage their account
When an object cannot be found, can vote for such object to be included in the system
Expect a timely and efficient service: placing a reservation in 3 minutes, picking up objects in “garage” in 5 minutes (say “hello”, confirm your identity, get the object. No deposit, no cash, no contract), not spending more than 15 minutes to go to the “garage” (i.e. 1 km by foot, 3 km by bike, 8 km by car)[5]
- Return is as efficient,notify any problem (can be done online too when using the objects)
- If they need to borrow more objects than planned for by their membership, they can:
- upgrade to a subscription offering more services (with an extra fee),
- “sell”their own objects to USITOO in exchange for the right to borrowadditional objects(replace one object you own by the right to use several other objects),
- become a host of a “garage”location(see below)
- Enjoy a net annual saving of 1500 € thanks to all the objects they do not need to buy
/ USITOO hosts and their “garages”
Are the ones that drive the whole system up, establishing a network of pick-up and delivery places opening at least 3 days/week, offering a variety of opening hours (e.g. office from 8am-6pm, an elderly couple:8-11am & 3-6pm, young adults 6:30-10 pm)
- Are rewarded for that service with a reduced fee on their membership or the right to reserve more objects
- Together, they implement a dense network (at least 1 garage per squarekm) so that each user finds 2 to 3 placesclose to his current location[6]
- Each garage keeps a stock of objects with a high lending rate in order torespondto ‘last minute’reservations:the 50 ‘most-demanded’ objects are always available. All other objects are delivered daily from the centralised warehouse by the logistics team
/ USITOO logistics team
Is supported by the platform to design clever delivery routes that minimise the distance per object delivered (hence also reducing climate impact on that aspect)
- Organize two deliverytours per day,with the USITOO van,in all “garages” in order to meet the 24-h delivery commitment. During these, operators collect objects that need to move to other locations, deliver needed objects (based onreservation), and provide a backup for objects that need maintenance (wear & tear, breaks…)
/ USITOO maintenance team
- Maintains a spare parts stock, andimprove objects’ lifetime with best manufacturers
- Regularly checks all objects(every x weeks, depending on usage and object type)
- Maintains a knowledge database of routine checks and repairs[8]
/ USITOO platformgets thousands of accesses per day to
- Manage user profiles (wallet, lending history, list of used/soldobjects…)
- Provide a list of “most wanted” objects and the price we are ready to pay for these
- Allow for “garage managers” to report objects picked up/returned by users
- Allow for maintenance team to report over interventionsmade on objects
- Keeps track of all the organization of the logistics team
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USITOO
[1]Annie Leonard, “The Story of Stuff: The Impact of Overconsumption on the Planet, Our Communities, and Our Health-And How We Can Make It Better”, Free Press, 2010.
[2] Greenhouse gases (GHG) are the primary responsible for climate change.
[3] Peer2peer (P2P) platforms are those that promote direct contacts and services between peers (citizens).
[4]In terms of price, people find the system a good deal if it costs them 10% of the value of the objects, and an excellent deal if it is lower than 7%. The average value of an object in the warehouse is estimated at 220 €.
[5]This stresses the need to have many disseminated pick-up and delivery places, hence the “garages”, and establishes the profitability of the system only for areas with a minimum of 360 inhabitants per square kilometre.
[6]Current tests show that 170 “garages” are needed for a community of 15.000 users. Each garage serves 60 to 80 regular users in average, and manages 10 to 20 transactions per opening day.
[7]For an additional fee paid by the user. Costs will be reduced thanks to partnership with a local carrier.
[8]And partnership to be discussed with platforms such as ifixit.com
[9]Each object has its own page, with its “history”: usage, breaks, comments… delivering a “Social network of objects”.