Martijn Arets: As sharing economy companies come under fire for exploitative labor practices, data privacy issues, and more, there’s another movement that’s been brewing to counter some of the negative impacts of these platforms. Called “platform cooperatives,” these digital enterprises are built on foundations used by traditional cooperatives. In the U.S., Green Taxi, Stocksy United [a sponsor of Shareable], and Up&Go, are examples of platform cooperatives that are offering new pathways to gig work that are sustainable and democratic. But this is not to say that there aren’t any potential pitfalls for platform cooperatives. Setting up successful platform cooperatives requires much work and investment in resources, not to mention being adaptable to changes in the market. Here are five key considerations:

1. Market

Platforms are successful because of network effects. The more people join, the better a platform functions. Breaking the network effect is extremely difficult because you would have to convince everyone to switch to an alternative platform. For local businesses, however, in which supply and demand are physically close to one another, this is a slightly easier undertaking. Before creating your platform cooperative, think about if the service it would provide can be localized. It’s still possible to make platform cooperatives work across borders, but it takes more time, effort, and resources to tap into bigger markets.

2. Technology

Platform cooperatives have three ways of dealing with technology:

1. Developing their own technology

2. Joining a cooperative that provides the technology and support they need

3. Using existing technology in their industry

Whichever mode your platform cooperative chooses to go with depends on the resources and expertise you can allocate to it. Ideally, it would be beneficial if various platform cooperatives share tech investments with one another. What’s important to note is that the technology you use in your platform cooperatives should also be built on cooperative principles to maximize the benefits. For example, in France, there are three “meta” platform cooperatives in the local bike delivery sector — CoopCycle, Applicolis, and Blockfood — which facilitate IT, marketing, and sales. The idea is for every city to have a worker co-op with the couriers, and all the worker co-ops together are owners of the meta co-op. This would ensure their security and continuity in the future. By uniting, they can serve bigger clients and take advantage of collective purchasing.

3. Government

In order to implement a more democratic playing field, local, state, and national governments can do a lot to lower the threshold for entry for new platform cooperatives. For example, they can offer a “certificate of good conduct” database or add provide tax benefits to such platforms. On top of this, governments can attempt to break data monopolies of larger players. Keep an eye on the local and national laws and policies that might help support the creation your platform cooperative.

4. Support

The power of a platform falls or stands with the grace of its users. When the supply or demand group unites, it can be done in no time. Existing associations, sector organizations, or trade unions can play an important role in supporting or setting up platform cooperatives. Look for support your platform cooperative can obtain from partnering with such organizations — and also what your company can offer them in return. They can assist with finance, lobbying, and other support.

5. Quality

The fact that an enterprise is owned and managed by a local group of workers should not compromise the quality and convenience of the app, the service, or even the price levels. Before starting a platform cooperative, take a deep look and decide whether your platform cooperative would actually be able to offer an honest alternative to the larger, venture-backed platforms before starting it.

Although there are many opportunities for platform cooperatives, it has become clear that the model is harder to realize than initially indicated. But trickier doesn’t mean impossible.

Header photo by Danielle MacInnes via Unsplash

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Both off-line and online ‘on demand’ work is escalating – including a 10-fold increase in zero-hours contract work since 2006. There are 4.8 million self-employed (15 per cent of the workforce). Self-employment is also a pre-condition for gig economy jobs. Not surprisingly the growth of freelancing has expanded in a decade by over 1 million and two in three new jobs in the UK are being created by the self-employed. Jobs with limited rights are becoming the new normal.

The brave new world of on-demand work operates with no guaranteed hours, workplace or rates of pay and with risks and costs shifted from capital to labour. The median income for freelance workers and those on zero-hour contracts is 40 percent below the median of those in traditional employment. 77 per cent of the self-employed are in poverty with 1.7 million earning less than the national minimum wage.

As an expanding army of labour the self-employed will surpass the number of public sector workers during 2018. Crowd-sourced labour corporations are spreading to all services sectors, including: Deliveroo, Hermes and CitySprint for deliveries; MyBuilder and Handy for repairs, cleaning and gardening; TaskRabbit for odd jobs; Clickworker for office work; TeacherIn for supply teachers; SuperCarers for social care; and UpWork for higher skilled freelancers.

The profitability of the gig economy model is intrinsic to a design that saves 30% on labour cost overheads plus further savings on equipment, debt collection and insurance. Double standards are evident. Deliveroo in Germany and the Netherlands employs its riders and provides tools of the trade while UK riders have no such protection, provide their own bikes and are charged £150 for the company kit. Legal cases by UK trade unions challenging false self-employment by Uber, Deliveroo, CitySprint and others have secured ‘worker rights’ (including the minimum wage, holiday pay and sickness benefits) but the court decisions are subject to appeal.

Disruptive technology is ‘hollowing out’ corporations by eradicating conventional jobs and substituting casualised ones. Consequently the squeeze on real wages is greater today than any time since 1850. Between 2009 and 2015 the labour share of national income fell from 57 to 53 percent with a corresponding 4 percent increase to capital.

The mutual aid pushback historically by trade unions and co-ops against the unrestrained free market in the 1840s led to social justice solutions. A similar push back is kicking off today. Key innovations profiled include:

1. Freelance co-operatives have emerged in Europe in trades where self-employment is the norm. A good example is the network of 30 local actors co-ops in England and Wales. They collectively negotiate, manage and renew work contracts. Moreover they provide services complementary to the trade union bargaining services of Equity for the same members. Similarly there are 9 local Musicians co-ops in England and Wales that work collaboratively with the Musicians Union. A new co-op for educational psychologists has been set up backed by their trade union. There is enormous scope for more joint trade union and co-op partnerships like these and especially with the current growth in new freelance co-ops in the UK for tech workers, filmmakers, translators, interpreters, bakers and in many creative industries.

2. Business and employment co-operatives developed in France and Belgium during the 1990s. They provide a wide range of services that secure ‘worker rights’. Smart in Belgium with over 70,000 members is a good example. It handles for freelance members their invoicing and debt collection in ways that smooths out cash flow through guaranteed payment within seven days. Smart secures decent work by providing workspace, ongoing vocational education, equipment rentals and by managing social security arrangements to access benefit entitlements. Indycube a co-operative provider of workspace with more than 30 locations in England and Wales has formed a partnership with Community Union to develop a Smart solution for the UK. Smart co-ops have already been developed in seven other EU countries.

3. Social co-operatives developed first in Italy from the 1970s and operate in the fields of social care, community and public health, education and in the creation of employment for disadvantaged groups. In Italy they are supported by a national trade union agreement and provide services for over 5 million people with an annual turnover of more than €9 billion. The model has been developed in Canada, Japan, France, Spain, Portugal and other EU countries. There are a growing number of social co-operatives in England and Wales including Cartrefi Cymru Co-operative, Community Lives Consortium, the Foster Care Co-operative and CASA.

4. Union Co-op platforms are an emerging strategy aimed at advancing worker ownership and control in service industries. For example, the SEIU public services union in the USA is developing apps and a platform for community nurses and childminders. The CWA union in the USA, for example, has assisted taxi drivers in Denver to set up Union Taxi and Green Taxi co-ops and to become highly successful with their own apps. There is trade union support in the UK for developing apps with the highly successful Taxi co-ops (City Cabs and Central Taxis) in Edinburgh being a good example of partnership with Unite to negotiate rates and license conditions.

Supportive public policy and legislation is crucial for a transformative difference. The USA and the UK have weakly developed workplace co-operatives with less than 500 in each country. Italy by contrast has more than 24,000 worker co-ops and social co-ops that have created more than 827,000 jobs. This transformation was propelled both by legislation in 1985 (for worker co-ops) and 1991 (for social co-ops) and by public-co-op partnerships with local authorities. Italy has also pioneered innovations in co-operative capital funds and mutual guarantee societies that together make low-cost development equity and working capital readily accessible for workplace co-op development.

For a democratic sharing economy that is equitable for both workers and service users, a similar public policy framework is needed in the UK as well as an eco-system of local support including technical assistance, advice and co-operative finance tools. Our report shows how to connect these ways and means and highlights examples of emerging local authority strategic support for economic democracy solutions from New York to Bologna that should be pursued here.

Photo by DigitalMajority

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‘Ownership is the ground where the tug-of-war for the next social contracts is being played. Who owns what will determine who really benefits’

After a contentious early meeting of Green Taxi Cooperative’s driver-members, then in the process of forming the largest taxi company in the state of Colorado, I asked the board president, Abdi Buni, about self-driving cars.

The state legislature had started clearing the way for them on our roads, after all, and the airport was giving Uber and Lyft preference over the local taxis. Buni’s competitors were thinking about them, so what about him?

“We’re really trying to feed a family for the next day,” he said. “When it happens, we’ll make a plan.”

He said this with the kind of weariness about technological wonders that I’ve frequently found among co-op directors – and I could easily understand why. Uber and Google were testing their automatons with billions of dollars from Wall Street in the bank, while Green Taxi was running on what membership fees its mainly immigrant drivers could scrape together.

But the reality was that the self-driving cars were not some distant future that could be put off. As investors poured money into the car-sharing apps in anticipation of automation, the apps put so much pressure on Denver’s taxi industry that drivers fled their old companies for a better deal in their own co-op.

In that sense, it was as if the robots had already come. Green Taxi owed its existence to them.

There are two stories commonly told about robots these days. One is that, in the not-too-distant future, some enormous percentage of jobs currently being done by people will be taken over by computers, and the workers will be left twiddling their thumbs. The other is that, like past periods of technological change, job markets will simply evolve, and new, better things will arise for us to do.

The truth is neither – and everything in between. I say so, not by having any special insight into the future, but by noticing certain features of the present.

For instance, while it might look to some observers in affluent, urban areas that we’ve entered a post-industrial age, more stuff than ever is being produced on this planet, with human hands very much involved – it’s just that this is happening in different places.

Even where old factories have turned into apartment lofts, jobs show no particular sign of going away – they’re just less secure. People in places where it was once possible to support a family on one standard, career-long salary are becoming used to lifetimes of gigs, found and mediated by machines. Social contracts are shifting, while companies, governments, workers, and myth-makers are vying to set the new rules. It’s not a sudden robot apocalypse, it’s a longer, slower tug-of-war.

The winners will be the owners. Many of the world’s highest valued firms claim the title because they own vast, vast stores of data – data about us, data that can feed their algorithms.

Ownership is the ground where the tug-of-war for the next social contracts is being played. Who owns what will determine who really benefits. The owners, also, decide which tasks to invest in automating and what happens to the people who used to do those tasks.

Right now, a few very powerful conglomerates are likely to dominate this contest, companies based primarily on the west coast of the United States and in China. They are only getting stronger, as is their capacity to pull what they need from the rest of society and remake the rules on their terms. In new guises, this is a story we have seen before. It’s the story of railroad barons, big banks, and big boxes, of economic bullies that provoked people to create their own economies of scale through co-operative enterprise.

It begins with thinking about automation like owners do, not like victims of it. In worker co-ops, rather than fearing how machines might take work away, workers can imagine how they could use those machines to make their lives easier – in ways better and fairer than the investor-owners would. Consumer, purchasing, and marketing co-ops can use data visualization to demonstrate the superiority of their supply chains. The less people have to do to maintain all this, the more they can turn to opportunities for creativity.

Co-ops thrive when they discover how to do what other kinds of companies can’t or won’t do. Co-operative AI, also, may be intelligent in ways the investor-owned counterparts can’t be.

Emerging data co-ops like MIDATA (for medical data) and GISC (for farmers’ data) are built for privacy and transparency, while many of their competitors optimise for surveillance and central control.

TheGoodData harvests the proceeds from members’ web-browsing habits for micro-lending programs, and Robin Hood Co-operative runs an algorithm that prowls financial markets for opportunities to fund public-domain projects. This kind of data can in turn inform future co-op robots, like the flying drones that Texas utility co-ops used last year to restore power after Hurricane Harvey struck the state.

Rather than worrying about how robots and apps will make their current business models harder, co-ops should ask how smart, member-focused automation can set them apart. But the barriers are real: This takes economies of scale, and co-ops need to band together to create them.

For instance, there are driver co-operatives like Green Taxi all around the world – what if they created a shared hailing app that customers could use wherever they go, and pooled the data for mutual benefit?

Meanwhile, consumer car-sharing co-ops like Modo in Vancouver are well-poised to be leaders in adopting driverless vehicles – accountable to the local community, not to far-away investors. In hard-to-automate service professions like house-cleaning and childcare, platforms like Loconomics and Up & Go are using co-operation to automate marketing and payment so workers can focus on –and get paid better for – doing their core jobs.

The 20th century was full of science fiction about technology making people’s lives better and freer, but we’ve wound up with a 21st century of worsening inequality and insecure incomes.

The world of The Jetsons doesn’t arrive automatically. In order for the benefits of technology to be shared more widely, the ownership of it must be shared, too. Co-operation is uniquely well-suited to do this.

Reposted from The News Coop

The post How co-ops can help spread the benefits of automation appeared first on P2P Foundation.

“Platform Cooperativism: Building the Cooperative Internet” Link Mega-List

With November’s event come and gone, we have assembled a list of some of the articles and media resulting from “ Platform Cooperativism: Building the Cooperative Internet.” We want to thank everyone in attendance — in person and watching via live stream — for their dedication and passion. For those of you who did not get a chance to attend, we encourage you to check out the materials linked below which include post-conference write-ups, live coverage, image galleries, and archived recordings of every lecture given at the event.

Articles

• Writeup by Darren Sharp (@dasharp), including the launch of the Platform Cooperativism Consortium
  
• Event highlights by Jonas Algers (@JonasAlgers)
• Enric Senabre (@esenabre) and Ricard Espelt (@ricardespelt) offer a summary of approaches to the design and development of platform cooperatives with a focus on the final day’s “unconference”
  
• Live coverage by Dorothy Howard (@DorothyR_Howard), reporting for e-Flux, with a host of links mentioned by different speakers
  
• Discussion of the conference and a collection of passages from important texts about platform cooperativism by Ewen Chardronnet (@ewenchardronnet) in English and French
  
• A published transcript of the talk by Wolfgang Kowalsky (@kokowo1) mounting a critique of platform capitalism
  
• The conference experience of Peter Bosmans (@febecoop), Febecoop, Belgium (Dutch)
  

Media

• All recorded footage, filmed by the Internet Society, can be found on the Internet Archive. You can also download a torrent file of all video files. These recordings also remain on the Internet Society’s Livestream channel where they were first broadcast.
  
• Collection of photos on Flickr
  
• Images posted to Twitter with the #platformcoop hashtag during the conference
• Radio feature about the event by Deutschlandfunk produced by Patrick Stegemann (@petterich) (in German)
• All image tweets and text tweets made on Twitter with the #platformcoop hashtag during the conference

Selected Presentations

Green Taxi

Jason Weiner of Colorado Cooperative Developers discusses the success of Green Taxi Cooperative, a new union taxicab cooperative in the Denver/Boulder metro area. The company’s app has the convenience and functionality of its venture-capital backed competitors, shares 100% ownership among its members, and is now the second largest worker cooperative in the country.

The Union-Coop Model

This panel, moderated by Trebor Scholz, featured speakers from a number of different unions: Palak Shah of the National Domestic Workers Alliance, Dawn Gearhart of Teamsters Local 117, Lieza Dessein and Frisia Donders of SMart Coop, Annette Mühlberg of United Services Union in Berlin, Michael Peck of 1worker1vote.org and Mondragon, and Christian Sweeney of the AFL-CIO. They discussed the union-coop model and the challenges it will have to overcome to succeed.

Towards an Open Social Economy

In this talk, Yochai Benkler elaborates the economic conditions that have resulted in a crisis for democratic capitalism. Arguing that recent far-right populism is a response to an oligarchic capitalism which was born in the 1970s, Benkler claims that platform cooperatives have the potential to be a core component of an alternative, left-wing trajectory into a market economy re-embedded with social relations. He stresses the importance of winning an ideological war in this time of uncertainty, not on paper but through real-world organizations engaging in cooperative social production.

The Digital Democracy Manifesto

A cheeky and informative talk by Richard Barbrook discussing the path to the inclusion of platform cooperatives as a key point in the Digital Democracy Manifesto proposed by UK Labor Party leader Jeremy Corbyn.

MIDATA.coop

In his short presentation Ulrich Genicke introduced MIDATA.coop, a project that enables citizens to securely store, manage and control access to their personal data by helping them to establish and own national/regional not-for-profit MIDATA cooperatives. MIDATA’s initial focus will be on health related data since these are most sensitive and valuable for one’s personal health. MIDATA cooperatives act as the fiduciaries of their members’ data. As MIDATA members, citizens can visualize and analyze their personal data.

There were so many remarkable talks; these is merely a small selection. Here are a few more talks

• Thomas Doennebrink’s report from Berlin and Mexico City
• Nathan Schneider Interviews Professor Esther N. Gicheru
• Mayo Forell Fuster

The post Looking back on “Platform Cooperativism: Building the Cooperative Internet” appeared first on P2P Foundation.