Most individuals are conversant in business-to-consumer (B2C) sharing economic system firms, corresponding to Uber, Airbnb, and DoorDash, however what chances are you’ll not know is that this fast-growing, well known enterprise mannequin can be being more and more leveraged by business-to-business (B2B) firms to entry on-demand companies in lieu of short- or long-term contracts with third-party companies.
During the pandemic, producers—particularly small ones—have been left with idle manufacturing unit capability. On-demand manufacturing marketplaces corresponding to Xometry, Fictiv and 3D Hubs linked industrial corporations with new purchasers, so that they maintain their factories and employees absolutely utilized, making them extra resilient and agile.
On-demand platforms corresponding to FLEXE, Flowspace, and SpaceFill helped warehouse homeowners generate income from their underused amenities by renting them to corporations each giant and small who’re desperately looking for area to inventory their stock. B2C leaders like Airbnb and Grubhub are additionally aggressively pursuing the enterprise market by using the work-at-home/work-anywhere wave.
The marketplace for the B2B sharing economic system isn’t small, with nearly each enterprise now leveraging sharing firms to reap the benefits of all kinds of companies which may vary from manufacturing, logistics, and warehousing to software program growth, pc {hardware} rental and on-line HR & payroll companies.
A vital level that many companies engaged in the B2B sharing economic system are more and more conscious of is that engagement typically carries appreciable legal responsibility danger, which is why it’s of utmost significance for companies to insure towards this danger with sturdy verification companies.
The sharing economic system itself is already giant and can solely proceed to develop. BCC Research predicts that the world sharing economic system market worth will attain $1.5 trillion by 2024, up from $373.7 billion in 2019, with the B2B section rising at a fast clip. A Business.com survey indicated that almost 70% of firms right this moment use some side of the sharing economic system no less than as soon as a month, with 26% making the most of these companies each day.
Real dangers at stake
B2B sharing economic system firms are completely different from typical vendors. The relationships are extra transactional and sometimes the workforce can be much less meticulously vetted. Integration varies wildly from firm to firm, starting from conventional stand-offish connections to imprecise and poorly understood connections by apps, web sites, and private units.
The largest danger most vendors face right this moment (and one which CIOs are more and more cautious of) when leveraging B2B sharing companies is cybersecurity. Contractors with entry to vital firm information have the energy to do immense injury, if they’re so inclined, and should be vetted extra totally.
There are additionally different dangers. The insurance coverage or certifications that third-party vendors typically signify themselves as possessing might have lapsed or may merely not exist. On-demand customer support and gross sales forces, significantly service suppliers who enter prospects’ houses or properties, signify a way more important danger than your common Uber driver or DoorDash supply individual.
The onus to totally vet B2B sharing economic system vendors and contractors is on the enterprise that hires them, however most of the time, this merely isn’t taking place. The identical kinds of checks and balances {that a} enterprise makes use of to rent an worker or a standard provider needs to be applied for sharing economic system vendors and contractors, particularly these that may have entry to their information and methods. This may embody verifying a enterprise proprietor’s id and legal historical past, a enterprise registration, a contractor’s skilled licenses and/or certifications, and – maybe, most significantly – the particular person or enterprise insurance coverage protection.
Opportunities and obstacles
The excellent news is that industry-wide, vendors of all kinds have gotten conscious of the essential nature of verification and are starting to place processes and methods in place to handle the concern. Apple, as an illustration, has added new capabilities to confirm shoppers’ driver’s licenses, and two U.S. states (Arizona and Georgia) have already absolutely accepted the Apple digital copy saved on telephones as reputable. More states are certain to observe.
The alternative (and simultaneous impediment) for companies that want to achieve success in the B2B market is to design options that may confirm what is important, and solely what is important, for any given position or service qualification. Most {qualifications} are extremely specialised and specific, not broad and common like a driver’s license, however in some circumstances, the potential to confirm each micro and macro credentials is critical and may be efficient at lowering danger and legal responsibility and making certain model integrity, income, and development in the B2B sharing economic system.
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