UK government launches review of the sharing economy

The government has launched a review of the “sharing economy” to evaluate the economic potential and social implications created by people sharing products and services through the web.

The review is intended to look at the impact of services such as Airbnb, which allows people to rent out homes or rooms, or BlaBlaCar, used for car journey sharing.

In his speech to the Conservative Party conference, chancellor of the exchequer George Osborne highlighted the need to understand the potential effect of disruptive technologies.

"Every single day new technologies, new companies and new economies are fundamentally shaking up the established way of doing things," he said.

"It’s never been easier for thousands to start their own business in Britain, and reach the whole world. But a single app can appear overnight and disrupt an entire industry. 

"It can be exciting – but unsettling too. For this technology brings intense competition that spells rapid decline for any sector, or any country, that fails to keep up. These are big questions that require big answers."

The consultation has been initiated by the Department for Business, Innovation and Skills and will be led by Debbie Wosskow, CEO of online home-swapping service Love Home Swap.

“Over the next few months I will be exploring the social and economic potential of the sharing economy in the UK, and making recommendations on how this potential can be reached. I will also be considering any risks to consumers, or established businesses outside the sharing economy,” said Wosskow.

“I am keen to hear a wide range of views to feed into my review, including from users and potential users of sharing economy services, businesses operating in the sharing economy, and established businesses that are not part of the sharing economy,” she said.

The consultation will look at existing services such as home or business rentals, transport sharing and personal-time sharing, as well as emerging areas including fashion, food and personal items.

The terms of reference for the review said: “Collaborative businesses such as Airbnb and TaskRabbit are growing the sharing economy – peer-to-peer marketplaces that allow people to share possessions, time and skills. These new and varied business models are attracting significant publicity and investment across a wide range of sectors.”

Wosskow is calling for evidence to be submitted to the consultation before 28 October 2014, and will report on her findings by December.

The sharing economy has already caused controversy in some countries. In the US, hotel firms have complained that Airbnb allows people to avoid paying taxes on renting properties, as well as circumventing the rules and regulations to which they are forced to adhere. Taxi hailing app Uber has led to protests by taxi drivers in London and elsewhere about unlicensed cab drivers unfairly competing with regulated providers.

The UK government hopes that a better understanding of the implications of the sharing economy will help to create an environment that is more attractive for companies launching such services to base themselves in the UK.

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BT launches cloud voice service for businesses

BT Business has expanded its communications offering for small and medium-sized enterprises (SMEs) with the launch of a cloud-based, business-grade IP voice service, BT Cloud Voice.

The operator said its new service would deliver all the traditional office phone system call features and quality, delivered via a BT Business internet connection, to provide a more flexible and future-proofed offering.

The system includes features such as intelligent call handling, conferencing, recording, desktop-sharing, softphones and smartphone integration.

The service will have three licence options: Basic, the entry-level functional service; Connect, for office-based firms with more demands than simply calling; and Collaborate, for firms with mobile or home workers that want to be able to use features such as audio-conferencing.

Users will receive an IP phone and a BT call plan designed to be shared among multiple users, with minutes to be purchased at the company level. All calls made using the system will run over BT Business’ network, said BT.

Buyers will be able to manage their service through an online portal, allowing companies to tailor and manage their own requirements, and perform a number of self-service functions, including licence management, adding and removing users, and setting call preferences without the need for BT to dispatch engineers.

BT said that, because the services are hosted, this should bring further savings for users by eliminating the need for elaborate maintenance contracts.

Graham Sutherland, BT Business CEO, said that 60% of SMEs in the UK were already using cloud-based applications to some degree, so the introduction of a cloud-based telephony offering could be seen as a natural step for a lot of the firm’s customers.

“BT Cloud Voice is a highly reliable and flexible business communications system and future-proofed solution for SMEs,” he said. “There are no initial hardware costs or engineer visits, and calling plans can be easily shared across the business.

“Our customers expect great value and high-quality products and BT Cloud Voice delivers on both counts,” said Sutherland.

In August, BT Business launched a range of plans aimed at SMEs including free 4G access and unlimited Wi-Fi.

Its latest product launch comes hot on the heels of a number of new communications offerings pitched at the smaller end of the market, and a government drive to encourage small businesses to apply for grants to upgrade their broadband.

Last week TalkTalk Business launched an SME-focused business broadband package that it claimed could save users close to £1,000 when compared to some equivalent BT services.

Virgin Media Business also unveiled a service for small businesses, saying that UK businesses were at risk of losing out to international competition if they scrimped on their communications budget, and courted entrepreneurs by running a fleet of free taxis around major cities and floating its CEO, Peter Kelly, down the Thames in a black cab.

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London innovation centre launches to tackle data challenges

An innovation and collaboration centre has been launched to develop ideas relating to data and the UK economy.

The Digital Catapult Centre at London’s Kings Cross will provide a modern space in which to showcase and develop ideas when it opens in November.

Part of the Connected Digital Economy Catapult and funded by Innovate UK (formerly the Technology Strategy Board), the centre will concentrate on four major data challenges: trust and personal data; the internet of things (IoT); building diverse datasets; and reducing licensing friction.

Entrepreneurs, small and medium-sized enterprises (SMEs), researchers and corporate organisations will be able to use the space to develop ideas and projects which may drive future economic growth.

The centre will feature state-of-the-art collaboration systems, innovation labs and development spaces. As well as a programme of events and workshops, the centre will run intensive two-week sessions that bring together experts to help small and large businesses develop products or services.

The centre will also home a secondment programme for PhDs and a student fellowship programme organised in collaboration with the Engineering and Physical Sciences Research Council (ESPRC).

Once the first Catapult centre is up and running, the Connected Digital Economy Catapult hopes to open regional centres across the UK.

Neil Crockett, CEO of Connected Digital Economy Catapult, said the UK is full of universities and clusters where people think of great ideas and are given support. 

“We want to complement that. We’ll bring people together in collaborative development projects to unlock four challenges in the data value chain to accelerate digital innovators to market,” he said. 

Once the first Catapult centre is up and running, the Connected Digital Economy Catapult hopes to open region centres across the UK

The Digital Economy Catapult predicts that it will have generated £365m of economic value by 2018, while helping 10,000 UK organisations.

“Creative collaboration is at the heart of realising data’s true potential and the Digital Catapult Centre is an exciting new addition to the UK innovation landscape,” said David Docherty, non-executive director of Connected Digital Economy Catapult and CEO of the National Centre for Universities and Business. 

“It will not only provide a home for digital innovators to connect, but run a series of programmes, secondments and events to actually make this collaboration a reality. This is an exciting time for the UK’s digital industry and the centre is now at the heart of it,” he added.

Bristol City Council, along with the Future Cities Catapult and the Connected Digital Economy Catapult, recently launched an open data initiative to encourage citizens to build services using local data.

The plan was to release 100 civic datasets, which will then be open for citizens to access. The city hopes this will support developers who wish to create new products and services to improve the city using datasets such as traffic management data. 

The results of the open data initiative could result in apps to make it easier to get around the city and information on how to reduce waste, save energy and improve air quality.

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