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The Platform Co-op Development Kit is a multi-year project that advances the cooperative digital economy. The Kit is a project by the Platform Cooperativism Consortium, homed at The New School in New York City, in collaboration with the Inclusive Design Research Centre at OCAD University in Toronto, and platform co-op communities worldwide.

The motivation behind this project is that we are approached, almost daily with the question of how to start a platform co-op. The work of the Kit is two-fold. First, we provide a range of resources that make it easier to start a platform co-op. Second, we will offer tools not simply by building coop technology but technology that will allow the platform co-op ecosystem to grow. We started the co-design process by engaging five pilot platform co-ops in Brazil, Germany, Australia, the United States, and India. The pilot groups:

• 3,000 babysitters in Illinois organized by the Service Workers Union looking for an onboarding, labor, and purchasing platform;

• young urban women in Ahmedabad, India who are part of the SEWA Federation of co-ops bringing beauty services to people’s homes through an app;

• trash pickers currently operating in Sao Paolo and Recife, Brazil, whose work recycling trash makes up more than 90 percent of Brazil’s entire recycling capacity;

• refugee women in Germany, starting in Hamburg with Syrian, Albanian, and Iranian women, who plan to offer a platform co-op for child care services and elder care;

• homecare workers in Australia, the only worker co-op in social care in Australia, that is seeking to build a governance tool for its remote rural members.

All open source tools that we will design with these groups will be customizable for a range of platform co-ops in various sectors and countries.

Initiated with a $1,000,000 grant from Google.org, this project seeks to raise a total of $10,000,000.

By building a broad coalition, our team will engage people around the globe who are seeking to learn about and then build platform co-ops with their communities.

By working with pilot groups in various sectors — from home services, garbage-recycling and beauty services, to child and elder care — we will demonstrate how the cooperative approach plays out in the digital economy. We will work with co-ops, technologists, policy facilitators, researchers, and freelancers to advance the movement for a cooperative digital economy. Watch an video introduction about this work here.

Read the press releases about the Kit from the Platform Cooperativism Consortium, The New School, and OCAD University. Explore how this work connects with Google.org’s “Future of Work” Initiative here. Read media coverage about the project with recent articles from Fast Company (also discussing the question of accepting Google funding), Shareable, and Philanthropy News Digest.

Goals of the Kit

Over the next two years, with the support of the platform co-op community, we will develop open source tools for use worldwide; and provide various resources such as essential legal, intellectual, and entrepreneurial resources that make it easier to start a platform co-op. This work depends on collaborations with cooperators around the world coming together to support one another and advance this movement.

These goals will be met through the following deliverables:

• Creation of open source labor platforms and online governance tools through co-design processes with five pilot groups, tailored to be extensible and customizable for other platform co-ops with similar needs;

• Development of an online wikipedia-style learning commons, activated by informal as well as institutional online learning groups in several countries;

• Development of a curriculum about the cooperative digital economy to be distributed with undergraduate and graduate programs in business schools and law schools as well as acceleratorator programs;

• Creation of a data-rich, interactive map of platform co-ops, and supporting organizations and individuals;

• Development of an international network of lawyers to provide legal resources to assist the launch of (platform) co-ops;

• Development of a global narrative co-written by co-op workers, researchers, unionistas, technologists, and policymakers.

• Ongoing reports and analysis about work in progress made available to the public online, and regular calls for community engagement and input

Strategy for Achieving Goals

The design and development of the tools will be guided by the platform co-op communities themselves. Full cycles of co-design, prototyping, implementation & evaluation will ensure that the tools fulfill the needs of the community. Additionally, by working with diverse pilot organizations and populations, our team will provide essential assistance to platform coops of all stripes, and to workers with many socioeconomic backgrounds. This reverses the dominant pattern of platform development which typically excludes marginalized groups, contributing to greater economic and social inequities. The project places vulnerable and marginalized workers at the center.

Creating a supporting infrastructure for platform co-ops through a learning commons, interactive map, cooperative curriculum development, and legal resources will launch simultaneously with pilot group work. Website development will be lead by the IDRC team, and we continue to engage with a number of collaborators to generate the various components that will eventually make up the online ecosystem. To achieve both goals, time and resources will be split over the next two years, with 70% of efforts going towards the pilot groups, and 30% towards the projects’s online learning components.

Finally, the project will run as an open and transparent community. All resources and updates will be available online to any prospective or existing co-op, and all interested persons. Explore recent updates, for example, from the IDRC on the Kit and our work with the pilot groups thus far. And review our blog updates documenting recent visits with our Hamburg and SEWA pilot groups.

Through collaboration with pilot groups and by engaging individuals committed to the movement, the toolkit grows from small successes. As our work progresses, we will engage other cooperative ventures, organizations, and individuals who can contribute different resources and services to advance this critical project. Stay up to date on our work so that now or in the near future, we can draw on the expertise of the community and find ways of collaborating.

How We Will Measure Success

Grant activities started on July 1, 2018 and will conclude with Google on July 2020. Iterations of the deliverables and prototypes will be freely available and open to critique and input as our work advances. A broader measurement of the project’s impact, however, will not be available until completion.

We will consider the project a success if the Kit was implemented by low income workers in at least three pilot groups & successfully transferred to at least one other labor market. Success would be based on the evidence of higher wages, better working conditions, democratic governance within the enterprise, & potential for scaling this work to more workers. Due to the nature of this work, these metrics can only be measured upon the completion of the project. In the same way a highway’s efficacy cannot be measured while it is still under construction, so too can the pilot groups’ effects not be known until full completion and implementation.

During the project, the Platform Cooperativism Consortium will provide qualitative research investigations and progress reports on the pilot groups. Written reports will provide big-picture analysis, and highlight successes, failures, best practices, and other findings from the pilot groups. These reports will also discuss the feasibility of these models applying to other industries or regions, and when applicable, offer policy recommendations.

For strengthening the platform co-op economic movement and building an online infrastructure of support, we will fulfill these objectives:

• Engage a variety of unique platform co-ops in distinct countries to facilitate the scaling of our labor platform and distributed governance tools

•Establish active learning groups engaged with our content online in at various countries

• Deliver high profile talks and media publications about Kit work

• Create a global narrative co-written by stakeholders and make it available for translation in different languages.

• Create and distribute a curriculum to shared with business schools, law schools, undergraduate or graduate programs at universities.

• Develop policy briefs and engage different political parties to consider

• Develop and share platform co-op worker testimonials to be hosted online

• Generate traffic to the platform.coop website with blogs and a new site design

We will also use non-parametric methodologies of measurement so that we do not impose a particular notion of success onto groups that are marginalized and have already suffered from the effects of traditional “successful” interventions.

The outcomes of the Kit will be diverse and variable, but collectively the change will be significant. We hope to reach the most marginalized of platform workers and build our work from their perspective. To achieve this we need to look beyond predetermined measures of success. If we only concern ourselves with measuring success through quantitative metrics, then we would be forced to develop quick interventions that scale quickly. We would be merely recreating the platforms of the past that have contributed to existing economic and social inequities and further marginalization. That is a strategy of the exploitative, extractive companies we hope not to emulate.

Instead, the project will demonstrate that we have only scratched the surface of imagining the possibilities for the cooperative digital economy. While our work over the next two years can begin to address the urgent needs for more organized research and infrastructure to support platform co-ops, more importantly, it will lay the foundation for future researchers, entrepreneurs, policymakers, co-op workers, technologists, and many others to pick-up this work and carry it forward in new directions.

Please consider joining us in this critical work. We need the time and energy of many people for this work to succeed. If you think you can help, please write to us at [email protected] and we can share more on how to get involved.

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photo credit: Trebor Scholz

Last month, after a year of preliminary conversations, the team leading work on the Platform Co-op Development Kit launched a collaboration with the Self-Employed Women’s Association (SEWA) – the largest organization of informal workers anywhere in the world. SEWA, a union of 1.5 million members and a federation of cooperatives with over 300,000 members offering services such as child care and insurance, is headquartered in Ahmedabad but operates all across India, organizing poor women workers in the informal economy.

By partnering with our team as one of five pilot groups for the Kit, SEWA Federation will be able to co-design two projects. One will provide a democratic governance tool for the members of the co-ops that work under the SEWA umbrella but are geographically too far apart to meaningfully participate in its activities. The second project is a platform co-op for beauty services.

About Sewa

SEWA union launched in 1972 with a small group of women who wanted to secure micro-loans to start their own businesses. Having been told they were “not bankable” by the nationalized state banks at the time, founder Ela Bhatt helped them learn to launch their own bank. By pooling their resources, and with contributions as little as ten rupees from many women in the community, SEWA established its own cooperative bank in 1974 with 100,000 Indian Rupees, or slightly more than 1377 U.S. dollars. The women began to recognize their own power. Ela Bhatt’s first book was consequently titled “We Are Poor but So Many.” Next, the women turned their attention to reducing medical expenses, as they were proving to be an obstacle to the women paying back their loans. Within a few years SEWA created a healthcare cooperative, which now provides affordable medicine. More and more enterprises continued to develop under the cooperative model. And while SEWA focused first on organizing urban women, they eventually also expanded into rural areas.

Today, Sewa Federation is comprised of 106 cooperatives, working in industries such as milk production and financial services, prescription medications and garment manufacturing. Importantly, Sewa Federation is a multi-denominational enterprise with women from various religious backgrounds: Muslim, Hindu, Christian, Jainist, and Buddhist. Sewa offers a range of services: from education to catering, childcare, and other services. The key to SEWA’s success has been its integrative approach, centering an entire ecosystem of co-ops around the needs of poor self-employed women in the informal economy. Learn more about SEWA’s unique approach through this report from the International Labor Organization (ILO).

We are grateful to the ILO for introducing us to SEWA.

Building A Beauty Services Platform Co-op

The collaboration with SEWA Federation is planned for the next two years. The platform co-op for beauty service will allow users to request a worker-owner to come to their home to do makeup, threading, waxing, and haircuts or massages. The platform will meet a growing demand for home services in the beauty sector in Ahmedabad and other Indian cities, as evidenced by the growth of extractive platforms such as UrbanClap and VLCC.

During his trip to SEWA to discuss this platform, Trebor Scholz met with both Namya Mahajan, managing director of SEWA Federation, and an initial cohort of 25 women who are currently being trained to work through the platform co-op. Learn more about the Federation’s commitment to the project in this short video with Namya:

When Trebor joined the workers in their first training session, they were learning how to greet a client at their home by stating their name, which was new to them as it is not common for low-caste women to state their names. Interestingly, many of the women already own or have access to smartphones. They are also familiar with Facebook, WhatsApp, and Instagram. But scheduling their work through a platform co-op will be new to them.

In discussing what they would like to see in the platform co-op, the young women emphasized their concerns about safety when traveling to clients and working in their private homes. In the workshop, the women asked for a panic button for workers to be integrated into the app. The button would allow them to quickly alert two friends and the police in case of an emergency. One of the more experienced beauty workers strongly felt that there should be no individual worker profiles available to customers. In order to protect the women from assault and harassment, users of the app should have no choice over which co-op member who is providing a particular service. They also expressed interest in a GPS feature that would allow a co-op manager to know their whereabouts.

By December of this year, once a prototype has been completed, work through the platform can begin with 25 women workers. A second group of 50 women will then begin the training, to join the platform in March 2019. The goal is to upscale the platform to anywhere between 500 and 1000, the average size of a SEWA cooperative. In contrast to the 30% of the revenue extracted from workers on traditional platforms, SEWA Federation only plans to take 15% to cover administrative and educational expenses. If successful, the platform co-op could even expand to cities like Patna, Chandigarh, and Delhi. Finally, because the women will be working in the clients’ homes, the platform could eventually offer other household services like cleaning, child care, painting, plumbing, electrical work, pet care, carpentry, cooking, and waste collection.

Additional support is coming from Godrej Consumer Products Limited. Godrej is contributing the initial capital investment for the business. It also supports the training for the beauty workers through curriculum.

Strengthening Distributed Co-op Governance

The second platform for SEWA will focus on organizing the cooperatives of the SEWA Federation spread out across the state of Gujarat, and additional cooperatives all across India. Distributed democratic governance is a significant challenge for many cooperatives, and given the number and diversity of co-ops within SEWA, and their geographic distribution across the entire state, SEWA needs a new online tool to help them organize, educate, and make decisions. Just think of the Adivasi women in the remote parts of the mountains in Southern Gujarat. While new tools like Enspiral’s Loomio saw amazing uptake, distributed democratic governance remains a big challenge for co-ops worldwide. But if trained to use technology and given smartphones, the women led by village elders could co-govern the co-op from afar. First conversations led us to imagine such functionality, also useable on flip phones, as follows:

• A decision-making tool in which co-ops can vote and decide on strategic matters and resource distribution within the federation

• A social-networking tool in which cooperators can connect and message each other

• An educational resources tool in which SEWA can share new videos, manuals, instructions, and best practices directly with co-ops, and co-ops too can share business information directly with the SEWA umbrella organization

These services, still pending the co-design process, would allow for improved business practices and stronger democratic governance for SEWA Federation across Gujarat. They could collect data from co-op members that could then be shared with policymakers, for instance. Thus, the tool could impact state policies so that local and national governmental policy better serves the interest of co-ops. The platform will also need to respond to the many different languages spoken by cooperators in the region (e.g. Gujarati, Hindi, English, etc.) and incorporate audio tools. In short, a new governance tool would dramatically improve the functionality and effectiveness of SEWA Federation.

More applied research in the area of distributed governance among precarious in the informal economy is much needed.

Sewa Federation is also interested in a cooperative online marketplace that would allow some of their co-ops to sell artisanal products, snacks, garments, generic medicine and Ayurvedic medicinal products.

In November, the Inclusive Design Research Center will start leading co-design sessions with women workers in Ahmedabad and then develop platform prototypes based on their specific needs. Trebor discussed with SEWA’s own video production cooperative the production of a series of testimonials documenting this process, interviewing workers in co-design sessions and creating videos in which women discuss their experiences with the platform co-op. Through the documentation of workers’ experiences, the videos will capture the potential of this model.

Learning from Sewa

The key to SEWA’s success has been their holistic, federated approach. SEWA places poor women workers in the informal economy at the center of an ecosystem of co-ops that seeks to address their various social needs, not just economic necessities.

In the U.S., many long-standing, very large and wealthy cooperatives have lost the focus on support for those who need it most. While large consumer, purchasing, and agricultural cooperatives like REI COOP, Ace Hardware, and Organic Valley prove economically successful and sustainable, they fail to significantly address broader social problems. They do not tackle complicated social and economic needs, like full-time workers lacking healthcare, rising income inequality, soaring childcare costs, etc. Workers in such co-ops sometimes do not exercise or feel inspired to participate in democratic governance.

By understanding and learning from SEWA, workers and cooperatives elsewhere can envision new ways of organizing their workplace, and re-orienting their cooperative identities. For example, larger U.S. cooperatives could commit to the 7 cooperative principles (especially the one focused on co-ops helping other co-ops), by investing in new startup projects (including platform co-ops) and creating spaces for incubation. They could also make a real commitment to open source tools, so that new platform co-ops do not have to waste resources and reinvent the wheel. By carrying SEWA’s integrated approach to the gig economy, we can imagine a stronger cooperative ecosystem that addresses the social and economic needs of workers in the informal economy, which account for over 90% of the Indian economy.

We are excited to be co-leading this work with SEWA over the next two years. As always, write to us if you would like to contribute ([email protected]).

For more information and the original post visit platform.coop

The post ​“We Are Poor but So Many”: Self-Employed Women’s Association of India and the Team of the Platform Co-op Development Kit appeared first on P2P Foundation.

At the heart of our supply partner chain is a sewers cooperative from Croatia. With a fixed percentage of our net sales we support garment workers in South Asia in their fights for better working and living conditions. This way, we want to create a positive impact for both workers in the alternative and in the mainstream economy.[1]

After two successful crowdfunding campaigns[2] and almost three years of business experience, we are now planning to take the next step by developing an innovative web platform which ultimately shall be collectively owned and governed by every party involved in the value chain; from the producers of the raw material all the way to the people who buy the clothes.

From platform capitalism to platform cooperativism

Never was it more obvious than today that capitalism fails to deliver on its promise of benefiting the many and not just the few. By grabbing after the internet, capitalism has given birth to business platforms that increase inequality, undermine democracy and lead to monopolies. The likes of Airbnb, Uber, Amazon and facebook are transforming our workplaces, relationships and societies and we have virtually no control over them. While nearly all aspects of our lives are being shifted online, a new and fairer model for the digital economy is needed. A promising model in that regard is co-ownership, transparency and democratic governance as promoted by an emerging number of so-called platform cooperatives. Contrary to venture capital funded platforms and their systemic flaw having to excessively extract and maximize value only for their shareholders, platform coops seek ways of including everybody who is affected by the platform’s activities in the equation.[3]

Applying the platform coop model to the buyer driven and undemocratic garment industry

How the industry works

Global fashion online sales are expected to grow massively from €415 billion in 2018 to €615 billion in 2022.[4] Approximately 75 million people are employed in the textile, clothing and footwear sector worldwide. Most of them are women. The industry is buyer driven which means that corporate giants such as H&M, Inditex, Primark or Kik usually do not own any of the factories they produce with, yet they basically control them. Their buying power lets them dictate where to produce, what to produce and at what prices. This, together with the rise of fast fashion, a business practice where the brands change their collections in very short time frames, puts enormous pressure on farmers, factory owners and workers. Supply chain transparency is another big issue.

Ways to gain power for workers

One way for workers to turn their often poor labour conditions into good or at least better conditions, has always been by organizing in independent labour unions and subsequently force the employers to negotiate collective agreements. However, this is easier said than done because anti-union practices are widespread in the global garment industry. Even though fundamental rights to join a union and bargain collectively are guaranteed in the big brands’ code of conducts and through various certification schemes, reality on the ground often looks very different.[5] Hence, the percentage of unionised garment workers in today’s main producing countries is very low.

Another way for workers to gain collective power and a higher level of self-determination is by organizing into worker cooperatives. Here, the workers collectively share the ownership of their workplace. Consequently, their work benefits themselves and their local communities rather than just filling the pockets of external shareholders, bosses or factory owners. However, there are currently just very few garment factories operating as a worker cooperative. In the first step of the value chain though, there is already a considerable amount of smallholder cotton farmers who are organized in cooperatives, primarily because together it is easier for them to sell their product and it also allows them to reach a higher price.[6]

Revolutionizing our garment value chain by becoming a platform coop

As of today, our immediate supply chain consists of three main partners. We buy 100 percent organic cotton for our fabric via Fair&Organic from India. The Social Cooperative Humana Nova receives these fabrics and sews them into t-shirts. Printex finishes these shirts with screen prints using water based eco-colours. Counting in the employees of the small manufacturers Fair&Organic works with, the combined number of people working for these three partners is likely to be around 50 to 60. It is safe to say that at least half of them in one way or another work for us during the realisation of a certain project. We should of course not forget all the additional people involved in logistics and transportation as well as in the raw material production. The products offered on our platform/website are only possible through the combined efforts of farmers, mill workers, fabric cutters, patternmakers, sewers, truck drivers, just to scratch the surface.

Now, imagine if all these hard working people were to become co-owners of the dna merch platform.

The co-ownership model would not only allow them to raise their voices concerning issues that affect them (e.g. delivery times, labour costs/wages and working hours), it would also make them eligible to a share of the surplus revenues generated by the platform.

And now try to imagine if all the other people in the value chain will become co-owners as well, those who will be using the platform to buy t-shirts and other garments either for their own use or to source and retail. If implemented properly in a truly inclusive way, this will lead to a fully democratised value chain in which both consumers and producers are empowered likewise. The technology for them to finally meet on eye-level and practice solidarity through direct interaction and trade is available. With the dna merch platform we want to put it in practice.

But why would it be so empowering to facilitate that sort of direct interaction between consumers and workers/producers? Two popular beliefs in today’s mainstream sustainability debate are that a) consumers have the power to make globalization fair and sustainable by shopping ethically and consciously, and b) that companies, to build trust in consumers, should certify their supply chains and guarantee universal standards through the means of independent audits.

While there is absolutely no doubt that our day-to-day shopping decisions matter and can drive companies to adjust and change their policies in a progressive way, it is way too easy to put all the responsibility in the end consumer’s pocket. We think it is hardly possible to always filter all products according to their social and ecological footprint and always make a conscious and ethical decision without going crazy, especially when the majority of products are known to be produced under poor conditions. What’s most important though, is that an approach which solely relies on the consumer power tends to treat workers in the global south as passive subjects who depend on our goodwill and help. Hence, it hinders us from seeing them as people just like us and makes it harder to create relations on eye level.

Audits are problematic, too. The vast majority of them has proven to be merely a paperwork exercise and does not lead to sustainable improvements of working conditions. A study from 2016 titled “Ethical Audits and the Supply Chains of Global Corporations” concludes that audits “are ineffective tools for detecting, reporting, or correcting environmental and labour problems in supply chains [and] they reinforce existing business models and preserve the global production status quo.” As with the consumer power argument, the biggest problem with audits is the passive position that the workers are put in.

We believe that it is the people themselves who know best what needs to be improved at their workplace or their favourite product. So, equipping people with the right tools to connect directly with each other, and putting them in a position where they no longer depend on powerful and manipulating intermediaries like most of today’s corporations are, they will figure out ways that benefit all those involved. With the dna merch platform coop we are determined to set out and prove it.

Lean proof of concept: Focussing on our status-quo

With our platform we want to address three dominant problems of the garment industry, i.e. lack of fairness and democracy, non-transparent prices and supply chains that hinder buyers from making informed decisions, and the fact that there is currently no easy way for workers and consumers to directly connect with each other.

To get things going we will make use of what we already have, a transparent supply chain for t-shirts with a self-organised sewers cooperative at the core, our existing website with a lot of transparent information and a network of customers comprising of trade unions, music bands, retail shops and crowdfunding supporters. We have various functionalities planned for the platform and will add and test them step by step along the way. First, we will add options to start one’s own crowdfunding campaigns and group orders. The idea is to make it possible for bands, organizations and individuals to initiate t-shirt pre-order campaigns to collectively pre-finance the production costs. If wished, users can add a margin on top of the costs to raise money via a public campaign.

Over time, we want to extend the product portfolio and offer not just customized printing on standardized garments but also enable e.g. young fashion designers to realize their first collection through the platform.

In terms of our organizational restructuring process from a German civil law partnership towards a platform coop with a legal structure yet to define, we aim to have an established organisation by mid of 2019 with at least 5 co-owners each from our producer part and the consumer/retailer part of our value chain (e.g. 3 workers from the sewers cooperative, 2 from the print shop, 1 band, 2 crowdfunding supporters, 1 fashion designer, 1 graphic designer)

Our biggest challenges and questions

1.       How exactly could a membership and governance structure look like in practice?
2.       How can we convince our stakeholders to embrace the undertaking of becoming a platform coop?
3.       What are the arguments and incentives that are valid for everybody?
4.       Which ones differ between the various actors?
5.       How will we ensure real participation of the coop members?
6.       Which tools and forms of communication will we need?
7.       How exactly will the business model look like?
8.       Transaction fees, membership fees …
9.       Coop shares
10.       Sales of own collections
11.       Consulting services for onboarding further producer partners
12.       Commission fees for fashion designers who win contracts through the platform from other users?
13.       How exactly can we make use of the Blockchain technology and other recent inventions that foster decentralisation?
14.       Which tools are readily available that we can make use of?
15.       Which impact on membership will the power imbalance in our supply chain most likely have, e.g. the fact that other than the     sewers cooperative all other partners are conventionally structured businesses?
16.       Should co-ownership of the platform become a prerequisite for being able to access all services and functionalities of the platform?

Call to action

We need and want more people to get involved in this!

Please get in touch by briefly mentioning what aspect interests you the most and where your expertise lies. We definitely need people with a technical background, people with experience working in coops, people with knowledge of the garment industry, social media and marketing experts, organizational theorists and probably a lot more that we cannot think of right now : )

Also, please feel free to reach out if you just want to comment on the idea as such or on one of the questions and challenges mentioned above or if you would like to add another one.

We are grateful for every input and consideration that you share with us!

You can best reach us via email or you can directly comment on the document here.

Doreen & Anton

[1]

[2] See https://www.startnext.com/dnamerch and https://www.startnext.com/dna-merch-vol-2

[3] For more info visit https://platform.coop

[4] See https://www.shopify.com/enterprise/ecommerce-fashion-industry

[5] See e.g. http://speri.dept.shef.ac.uk/wp-content/uploads/2016/01/Global-Brief-1-Ethical-Audits-and-the-Supply-Chains-of-Global-Corporations.pdf

[6] See e.g. https://www.ica.coop/en/media/news/small-scale-farmers-achieve-a-26-higher-share-of-consumer-price-when-organized-in

The post dna merch: A Platform Co-op in the Making appeared first on P2P Foundation.

Duncan McCann: 

Platforms – like Uber, Deliveroo, or TaskRabbit – connect services and products with consumers. With both sides theoretically having control over the interaction, and investing in the platform to reap the rewards, the rapid spread of platforms has the potential to revolutionise capitalism. But increasing concerns over the past few years around tech monopolies and the potential erosion of workers’ rights through the gig economy have raised questions over who really holds control over the platforms, and what impact this has on workers and customers.

Platform co-operatives present a possible alternative to traditional platforms which tend towards monopoly, concentrate power and erode workers’ rights. Drawing on a cooperative lineage which spreads out ownership and control, platform co-operatives could present a brighter future. But there are barriers to the spread of platform co-ops, including challenges of raising capital, finding the right skills within the organisation, competing with Silicon Valley, and harnessing positive network effects.

This is the second of two reports exploring the potential for platform co-ops, drawing on work we undertook with support from NESTA’s ShareLab fund. The previous report, A Better Gig? focused on the concerns of both drivers and passengers engaging in the private hire gig economy in West Yorkshire, and suggested that platform co-ops could go some way to remedying these. This paper draws on these lessons to set out the main challenges to setting up platform co-ops, and suggest ways of overcoming them.

Click on the image to download

Through our own research, and in particular through observing the development of a new ride-hailing app started by drivers in South Yorkshire, we have identified five areas of challenge for platform co-operatives. Firstly, platform co-ops are not attractive to traditional venture capitalists and tech investors. Platform co-ops can utilise other sources of capital (crowdfunding, co-operative banks and credit unions, or blockchain and alternative currencies) but will still never be able to match the billions raised in Silicon Valley. Secondly, co-operatives must commit long-term operational and financial commitment to building and maintaining their technology. Thirdly, coops need technology which can enable it to recruit drivers and passengers in parallel, and to distribute the profits of the business. Fourth, platform co-ops must find a way of subsidising their early entry into the market in order to build a profile for themselves. And fifth, platform co-ops must find a way to harness the virtuous cycle of positive network effects.

These challenges are difficult for platform co-operatives to overcome. In the ridehailing sector, we posit that co-operatives can be most successful in either focusing on a large city-scale project, or creating a network of federated co-ops to overcome some of the challenges. In other sectors, like cleaning and social care, the less complex tech demands mean that platform co-ops can make more of an impact. As well as developing alternative market interventions, we need to tackle the dominance of existing platforms.

We are at a crossroads. Traditional platforms seemed invincible until very recently, but regulatory battles and consumer action are changing the platform landscape. Platform cooperatives can be part of building a more equitable vision of the future. But small businesses cannot do it alone.

1. We provide a series of recommendations to make platform co-operatives viable.
2. We need new funding structures that can provide alternatives to the venture capital funding model.
3. New platform co-ops must collaborate with each other and, where appropriate, form federated structures.
4. Workers should be provided with the necessary skills training and support to establish their own co-operatives.
5. Locally-focused commissioning from the public sector could provide a vital revenue stream to platform co-operatives.
6. Government must enforce existing regulation robustly to ensure a level playing field for new platform co-ops.
7. Users and consumers need to understand the impact of spending their time and money on established platforms, and be given opportunities to spend their money on ethical alternatives.

The structural challenges outlined in this report offer some of the answers as to why we have not seen more platform co-ops emerge and flourish. Platform co-ops offer us hope that we can harness the benefits of digital platforms without the harms that many of the current ones create. But their creation will require both continued experimentation and the support of policy makers both to enforce existing regulations on platforms, and create new support structures. Only by working together can we hope to create a digital economy that truly works for everyone.

Photo by the meanMRmustard

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She oversees all of the program’s scaling initiatives, and has been supporting Up & Go’s development, its overall strategy and cooperative member engagement. In this interview we talk about the Up&Go platform, the history, the challenges and their ambitions.

“What the cooperatives are doing on Up and Go is they’re sharing best practices, they’re learning from each other, they’re creating a space where they can see each other as professionals, and learn from each other…things like, the best recipes for organic soap, or, how to clean this one thing that is so complicated. They’re creating policies and standards, developing policies that are innovative. For the first time, cooperatives developed a cancellation policy that was able to be enforced via Up and Go, and everyone thought that was a great idea. So I think there’s more potential for collaboration and improvements of each others’ systems when they come together an operate under one umbrella. There’s also challenges, of course, right? But I think there’s more beauty in the collaboration than in the competition that we could see.” Maru Bautista, Up and Go.

Martijn Arets is an international platform expert, entrepreneur, and part-time researcher at Utrecht University. The last six years he explored the platform economy by doing over 400 interviews in 13 countries, addressing the drawbacks which need to be resolved in order to reach the platform economy’s full potential and establish a sustainable model. At the Utrecht University, he is doing research on chances and obstacles of platform cooperatives and on platform society: new chances for inclusiveness through platforms. Martijn shares his insights, analyses, and thoughts through articles, videos, and books, as well as through presentations at (international) congresses.

Maru Bautista is the Director of the Cooperative Development Program at the Center for Family Life in Brooklyn, New York. For the past 5 years, she has worked with her team and the Sunset Park community to strengthen immigrant-led worker cooperatives in New York City. She oversees all of the program’s scaling initiatives, and has been supporting Up & Go’s development, its overall strategy and cooperative member engagement. She is chair of the Board of the Democracy at Work Institute and a board member of the US Federation of Worker Cooperatives. She has a M.A. in International Development from the New School in NYC. When not at work, she is in a park or a playground with her two year old daughter.

For more information, visit: Up and Go

Reposted from Youtube

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Alice Casey and Peter Baeck: 2016 was the year the collaborative economy established itself as the big disruptor of everything, how we travel, shop and manage our money; 2017 was the year the tide began to turn and the sector came under increased scrutiny. 2018 will be the year of construction – collective action that will create new forms of collaborative economy models for a wider benefit.

In recent years we have seen rising opposition and campaigns against gig work. This was initially led by incumbents worried about disruption to their businesses and by gig economy workers themselves who felt they got a poor deal from the platform giants. Consumers, citizens, and politicians soon followed suit – and all increasingly began asking questions about workers’ rights, regulation, local impact and the sustainability of many of the business models in play, in particular how power and profit was shared between platform and workers powering the collaborative economy.

Creative construction

While most criticism of the platform giants has so far been focused on whether or not their business models treat workers fairly; in 2018 we predict that those workers who power large parts of the collaborative economy will take constructive, collective action. Inspired by the disruptive nature of the platforms they work through, they will create services and organisations that themselves disrupt and evolve the marketplace, rebalancing power and distributing revenue differently.

This will be driven by a number of factors including: access to ever cheaper and customisable organising technology; maturity and size of the collaborative economy; and an increase in peer networks of those trialling new forms of ownership and organising. It will be fuelled by the continued dominance of centralised collaborative platforms and their drawn-out legal battles, giving workers an incentive to rapidly create their own solutions.

We think that two parts of the collaborative economy will be reinvented in 2018 –  the organisation and the union.

The new organisations: platform cooperatives

Platform cooperatives connect dispersed resources and workers through the web, offering a collectively governed alternative to the centrally-owned platforms. This affects how revenue flows to workers, and beyond into communities. Workers share ownership, and take a role in governance and allocation of any surplus income generated. Instead of focusing on creating profit for shareholders, a cooperative model focuses on distributing income generated in line with members’ wishes. These innovative organisations are increasing in numbers and testing a range of operating models.

Platform coops offer the following features in contrast to dominant centralised platforms:

Surplus

Surplus funds generated above the operating cost of the organisation are voted on by members – and often shared among them. They may be reinvested in the organisation’s development or in some cases to support agreed causes. There is no one size fits all approach to allocating revenue surplus. Stocksy paid out $200,000 in dividends to its photographer members and offers high royalty rates, turning over $7.9 million. Open technology makes it easier to allocate and distribute income generated in various ways that were previously impractical; digital agency Outlandish uses cobudget to allocate openly; Fairbnb intends to donate surplus to improve the neighbourhoods where rental properties are located.

Collective governance

Membership models mean that workers can have a say in an organisation’s governance, and multi-stakeholder models such as Fairshares also give others, such as buyers or beneficiaries, a say too. Enabling meaningful members’ input at scale may be tackled in part through using collaborative technology such as Liquid Democracy and Loomio. This could help focus on quality and accountability.

Alternative growth

Federated coops offer a way for technology to be owned centrally, but governed by groups of coops or social value organisations. The marketplace Fairmondo creates units within countries, currently powered by Sharetribe technology. Networks such as Enspiral offer digitally-enabled ways to grow organisations, currently numbering 300 contributors. Decentralised organising offers another way to distribute governance and finance at scale, exploiting blockchain to verify transactions. Commune and Arcade City are experimenting with this in transportation. Resonate music offers a ‘stream to own’ model, which charges you a price per play until you’ve paid for the track.

Social impact

There is a need to support further experimentation in joining coops with platform technology to address social challenges differently. Increased worker involvement and platform tech offers some promise for social challenges such as adult social care. Inspiration is offered by Buurtzog, a non-profit foundation – though not a coop – it empowers care workers to manage their own workload, focus on quality and take decisions using tech to support this way of working, turning over €280 million. Pioneers include Care and Share Associates, a coop model of social care, and icare, a platform created to manage care data.

The new unions: worker networks

Just as digital platforms have allowed companies to coordinate large, dispersed groups of individual workers to perform coordinated gigs and tasks without them connecting to each other, workers are now using the same technology to connect, support each other and take collective action for themselves, rebalancing power in favour of the worker.

In 2018, this way of organising workers in the collaborative economy will move into the mainstream and operate alongside, in partnership with, and perhaps even in some cases replacing, traditional unions. The call in the Taylor Review for A WorkerTech Catalyst and the pioneering work done by tech for good accelerator Bethnal Green Ventures, in partnership with Resolution Trust, on incubating startups that support low-wage workers is likely to lend further momentum to this.

The growth in worker tech has been characterised by solutions focusing on:

Rights

The US-based Coworker platform is one of the most established examples of organised worker rights campaigning. The platform came to fame when Starbucks decided to end ‘Clopenings’ (where people work back-to-back shifts) after more than 10,000 Starbucks employees signed a petition against this. Ten per cent of Starbucks staff have joined Coworker.

Accountability

More recently an Etsy employee launched a Coworker campaign to mobilise employees (and sellers and customers) to ‘ensure the company doesn’t stray from its values’, and Uber drivers used the platform to lobby for changes to the app, such as a tipping function, which was subsequently followed up by the company.

Ratings

In Germany, faircrowd.work has been set up to allow workers in the collaborative economy to share and access information and reviews of platforms including ratings of working conditions, including a guide to the different established and new unions that can help workers.

Dispute resolution

In a further evolution, eight European crowdsourcing platforms, the German Crowdsourcing Association, and the German Metalworkers’ Union established a joint Ombuds Office in 2017, tasked with resolving disputes between crowdworkers, clients, and crowdsourcing platforms.

Peer support

Closer to home, Welsh cooperative Indycube provides a voice for freelancers, carrying out invoice chasing and legal freelancer support services as well as operating a coworking space. Cotech offers support to its 29 technology cooperative members, running a network turning over £9 million and a workspace in London.

Insurance

As the setup of the work has changed so has the need for insurance. Some commercial operators like Zego provide ‘pay as you go insurance’ for riders in the gig economy. Others are experimenting with setting up insurance and mutual support between peers of workers. One example of this is Breadfunds. Now being trialled in the UK, but originally a concept developed in the Netherlands, bread funds are groups of 25 to 50 people who contribute money each month into a fund to support any of its members who become unable to work through illness or injury.

Disrupting the disruptors: Why now?

These developments represent growing demand for disruption and redistribution of power and profit in the collaborative economy.

The initial rapid growth of the giants in the collaborative platform economy was powered by billions in venture investment and enabled by regulatory environments that helped the disruptors to grow. Imagine what the models above would be like if they had received even a fraction of the billions in investment that have supported companies like Uber, Task Rabbit or AirBnB.

However, supporting this new wave of innovation is not just about investment in individual companies, it is about creating conditions for wider, distributed participation in the collaborative economy. We also need to ensure that regulatory frameworks anticipate such models, and that open licensing and a free and open web is maintained to allow the new wave of disruptors to grow and thrive, unfettered by incumbent interests.

In 2018, this new wave of disruptors is set to leapfrog the first wave of collaborative economy innovations to produce new socially and financially sustainable alternatives.

The rapid increase in demand for worker-led platform services, and the digital, open and decentralised nature of worker tech and platform coops means that they have an easy and flexible route to create new ways of working.

Photo by Tsahi Levent-Levi

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The crowd funding campaign for the startup of platform cooperative Incubator.coop has now been launched – you can learn more and support it here.

There’s problems with traditional incubators that no-one in “startup land” wants to admit. The problem is simple: incubators serve investors, not incubatee’s. That’s why we created incubator.coop – it addresses a real-world economic failure. Incubators can’t find enough fee’s from a target market that by definition is cash and resource poor. So incubators serve their investors as a deal-flow mechanism. They do not serve startups. In Australia, Pollenizer, the first startup incubator shuttered after just 9-years of business and after several pivots. The rest will follow if they don’t serve up good deal flow.

The quest for a better incubator leads to a better form of business

The future – according to those that hang out in the Co-Op sector – belongs to collective endeavours. It belongs to Platform CoOps not Venture-Backed 2-sided marketplaces.

The future is not a new AGL powered by wind and solar. The future belongs to hundreds if not thousands of community-level energy co-ops.

Introducing incubator.coop at the New Economy Conference

Short-fallings of Conventional Incubators

1. Conventional Incubators are not viable in themselves. Instead they act as a business development tool for “side-car” investors trying to pick winners. We think you need an incubator that exists to serve its incubatees.
2. Conventional Incubators look for a 1-in-1000 unicorn to repay their many wrong bets. We think you need an incubator that creates businesses of value that go the distance.
3. Conventional Incubators looks for exceptional talent. We think you need an incubator for collective endeavours.
4. Conventional Incubators function with a top-down approach. We think you need an incubator that harnesses the wisdom of the crowd.
5. Conventional Incubators promote returns for the 1%. We think you need an incubator where 1 Member = 1 Vote.
6. Conventional Incubators run for 6-months. We think you need an incubator that supports the whole period of development from formation through to operation.

Crowd Is Key

In the future, every business will continue to live and die by its service to the group of stakeholders a company may refer to as ‘shareholders, customers, employees and community’. But, in the future we’ll call these stakeholders the “crowd”.

The strength of the “crowd” will determine success more than historically as transparency, block-chain and social-media mean traditional market barriers become obsolete.

Crowdsource Instead of Top-Down

A crowd needs a place to develop ideas of mutual interest. This harnesses the wisdom of the crowd.

Given a bit of guidance and time crowd-sweat can bring ideas to the stage of maturity, where a crowd-fund campaign can test “product-market fit” whilst qualifying future customers and investors.

The best ideas will attract a crowd and develop. The ones without a crowd won’t develop. This is somewhat Darwinian on purpose. We think it’s better to put startup ideas through a ‘natural selection’ process than a ‘VC selection’ process.

Crowdfunding

We believe crowdfunding is an essential role in new venture development. So we are running our own through this soft launch phase until November 1, 2017.

Photo by Thad Zajdowicz

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“Platform cooperativism has the potential to completely transform the caregiving industry – including childcare and homecare – into dignified jobs where people make a livable wage and have control over their work lives. Because of this potential, the ICA Group has been partnering with multiple divisions of the Service Employees International Union to research, build models, and launch unionized platform coops. For example, The ICA Group has been working with SEIU Public Services Division to develop a childcare platform solution that enables family childcare providers to benefit from shared services, centralized administration, as well as joint marketing services. The coop-network, likely to launch this coming spring, will further act as a bridge between industry, unions and policy-makers who share the goal of improving childcare jobs and quality.”

Photo by havens.michael34

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