Mike Kuniavsky from ThingM Corporation spoke this morning at ETech about merging machine-readable identification with pervasive networking. Kuniavsky said that when a digital representation of an object is accessed through a unique ID, it is the object's "information shadow". Nowadays, he said, these information shadows are attached to just about everything. One of the consequences of this is that the physical object changes to a service. This is another manifestation of the bigger trend of internet connected objects. Kuniavsky outlined a couple of examples of objects as a service in his presentation.
The first example was Zipcar, a self-described "car sharing" service which is being marketed as an alternative to car rental and car ownership. Basically you subscribe to a 'pay as you go' plan or a monthly plan. Available in your own city or any other city where Zipcar is available, you may then borrow a car whenever you need to. In a recent review, The New York Times stated that Zipcar "exuberantly markets the notion that life is better without ownership -- car ownership, at least."

Another example is Bag Borrow or Steal, a "Netflix for handbags" where you can rent designer handbags and accessories. The site was created after the founders asked themselves the following questions:
"Why should women have to endure the emotional and financial sacrifices that accompany the endless search for the "right" accessory for every event, wedding, and dinner party? Why should celebrities, fashion editors, and socialites be the only ones allowed to borrow fashion accessories? Why not give everyone access to the perfect accoutrement for every occasion?"

So these sites are examples of the trend of objects as services, which comes about due to objects being able to be tracked and have their status communicated.
Kuniavsky said that this represents a "profound shift in our relationships with everyday objects" - how they're designed, consumed, and so on. One example is that if an object is being shared, it can't be personalized. One other issue is that the replacement cycle for shared services tends to be long - which Kuniavsky said may hamper innovation. He used the example of phone companies that used to provide consumers with big bulky phones, to limit maintenance costs and make them last longer. He thinks however that open standards and competing services is an answer to this, as it forces companies to innovate.
Overall, Kuniavsky argued that objects are moving away from an ownership model to a subscription model. The cars and handbags examples above are perhaps an indicator of many other objects becoming services.
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We should put it right here that exposing Zipcar misdeeds is a near cottage industry. They steal, they fight over refunds, they reinstate canceled card charges. They misrepresent where and when the cars are available,. They lied to me about availability on the Peninsula.
They are innovative, but they have a culture of "the custoner is always wrong".
"One other issue is that the replacement cycle for shared services tends to be long"
The sellers' aversion to upgrading the products it rents will be canceled out by the renters' desire for newer products. When everything is rentable, consumers have less incentive to hang on to obsolete products that they have sunk a lot of money into. Why not upgrade, when you are not very invested in the product you currently have?
@Coleman Very true, but this create opportunity for price differentiation for the rental companies. The same concept of paying a premium for newer good still applies, and there will still be a section of society that is willing to rent the older Mini instead of the newer one if it costs less.
Excellent article.
they are innovative, but they have a culture of "the custoner is always wrong". I think we should be careful
The same concept of paying a premium for newer good still applies, and there will still be a section of society that is willing to rent the older Mini instead of the newer one if it costs less.
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The same concept of paying a premium for newer good still applies, and there will still be a section of society that is willing to rent the older Mini instead of the newer one if it costs less.
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The heading "Bag Borrow or Steal" was a little confusing for me. Then finally after reading the article I got it. The post is really good.
Bag borrow or steal is a really cool business, and very useful for those who don't want to drop the full price of a bag just to look trendy for a night.
they are innovative, but they have a culture of "the custoner is always wrong". I think we should be careful.
Bag borrow or steal is a really cool business, and very useful for those who don't want to drop the full price of a bag just to look trendy for a night.
The service is a really great idea. There are many women who need the perfect accessory to complement their outfits but don't want to spend hundreds or even thousands of dollars on designer purses that they may only need for one outfit for one day. Even rented at 5-10% of the retail value is a huge savings.