Designed to respond to the consumer's every wish, the on-demand economy is transforming companies and the labour market, and its rise is undermining the strength of the traditional players.
The term "on-demand economy" was made popular by the rapid success of the new Silicon Valley start-ups led by Uber and Airbnb, and now everyone is talking about it. It refers to business activities where companies use new technologies to bring goods and services to consumers virtually immediately, and is experiencing staggering rates of growth. And so, scarcely seven years after it began, Uber is worth over 60 billion dollars. In the United States, 42% of people have used an on-demand service at some point. This is a trend set to continue.
Aside from the most well-known services that allow customers to order a driver, a meal, a doctor or lawyer, the on-demand economy now seems able to satisfy the consumer's every whim, even the most outlandish. Booster offers a mobile petrol pump service allowing drivers to fill up at any time. Through Techy you can request the services of an IT expert to fix your computer. FriendsTonight finds its users companions for any trip, such as to the cinema, a bar or nightclub. Pamper lets you order a manicure and Soothe brings you a massage. With Trumaker, you can find a tailor to cut you a suit. Washio will do your washing. And finally, Wag! walks your dog for you. There are even start-ups in California that deliver cannabis on demand, plus for Roman Catholics with an urgent need to confess, Scooterino Amen can bring a priest on a scooter to your door. It seems that the economy is more directed towards the immediate gratification of the consumer than ever before.
A new phase of capitalism
The arrival of the on-demand economy marks not only an anthropological development, but also the beginning of a new phase of capitalism. At the start of the 20th century, the introduction of assembly and production lines meant that Henry Ford could mass produce the Ford T at a reasonable price, a development that began to make the automobile more accessible to all. Today, the on-demand economy is allowing ordinary people to access services that were once the preserve of the privileged.
Several factors have converged to allow this revolution to occur. The first is the boom in new technologies. Powerful microcomputers available at low prices mean entrepreneurs can achieve a great deal by working alone from their own home. The spread of smart phones is also enabling autonomous workers to react quickly and move around with ease. And thanks to the internet, complex tasks such as programming or drawing up legal documentation can be outsourced to professionals working remotely.
In short, new technologies are creating relationships that are more fluid: large companies with very strong hierarchies and a stable workforce located in physical premises are giving way to less precisely structured entities composed of a small team of leaders and a constantly fluctuating mass of contractors. They may not even have an office, but those at the top direct the business while their staff work flexibly to meet customer requests.
The swift rise of the on-demand economy has also been facilitated by the financial crisis, which led to an availability on the labour market of young, flexible workers with good access to technology. Today, 34% of US workers are self-employed. Finally, the on-demand economy is the consequence of a shift in the balance of power in society. As The Economist states, whereas Karl Marx once laid out the opposition between the owners of the means of production and their workers, the dichotomy that stands out today contrasts individuals who are cash rich and time poor and those who have less money but much more time. The on-demand economy means transactions can take place between these two kinds of economic agents, and the latter can be paid to provide the former with services that they have no time to carry out themselves.
The winners and losers of the on-demand economy
The on-demand economy has changed the capitalist paradigm, bringing about far-reaching changes within society, the world of work, and even the lives of individuals. There are positives and negatives, as with any radical change. This is why it causes so much passionate debate, as illustrated by the many legal challenges and demonstrations against Uber and the aborted attempt to legislate to limit the expansion of Airbnb in San Francisco. Its opponents regard it as a reversal of social progress and a return to the brutal capitalism of the 19th century, when long queues of workers waited every morning in the hope of picking up a day's work.
But the supporters of this new reality emphasise the flexibility it gives workers, who are free to work wherever and whenever they choose. They also highlight the freedom consumers now have to choose from a wide range of services accessible on demand at prices they can afford. The defenders of the on-demand economy also say that it enables a better allocation of resources in society. For example, many rooms that would otherwise remain empty can be offered to tourists temporarily through Airbnb, and Uber allows several passengers to share the same vehicle.
Consumers certainly appear to be holding all the cards; for workers, however, the picture is more mixed. Those who value flexibility over security benefit from the new reality. This is the case for students wanting to earn a bit of cash, those who loathe office hours, young parents who would like to work part-time while raising their children, or older people nearing retirement who want to reduce their working hours. On the other hand, workers who favour security over flexibility, such as families with mortgages and tuition fees to pay for, stand to lose out in the new economic environment. It is therefore up to governments to adapt their welfare systems to better reflect society's needs in the light of the rapid rise of the on-demand economy. The American model, where health insurance is provided by the employer, is not at all appropriate for these circumstances and ought to be reformed so that every worker is covered.
Traditional actors forced to catch up
The on-demand economy also implies a significant shake-up on the majority of markets. This is firstly because companies offering on-demand services naturally launch on existing markets, where they proceed to impose very stiff competition on the traditional players. The most striking example of this is of course the arrival of Uber on the taxi market. But secondly, the heavyweights of the on-demand economy, which have the benefit of their brand names, capital and the latest technology, can swallow up sectors other than that of their principal and initial line of business.
If we remain with the example of Uber, the company quickly realised that drivers were extremely busy in the mornings and evenings, but had far fewer jobs in the middle of the day. And so to fill the off-peak hours, it began to offer additional services. First came the food delivery service, UberEATS, then the company delivering anything, UberRUSH. From a taxi company at the forefront of technology, Uber has gradually transformed itself into a service platform devoted to nothing in particular, able to turn its hand (or its vehicles) to various types of requirements.
Besides taxis, start-ups delivering food such as Caviar or Munchery are the ones facing competition, as well as longstanding firms on the delivery market such as FedEx and UPS. The name that Uber quickly built for itself, combined with its solid IT infrastructure, has allowed it to rival institutional players in a field where it was initially an outsider. And so these firms are obliged to respond to demand and follow the lead of Uber, or to at least adapt what they offer to meet the new rules of the on-demand economy. This is why UPS has just invested 28 million dollars in the start-up Deliv, which provides a same-day delivery service. The fast food brand Taco Bell has also established its own system for delivering food. And taxis are using smart phone applications modelled on Uber ... Little by little, with missionary zeal, the on-demand economy is converting its competition rather than taking them out.
(Source: www.atelier.net)
11.09.2024
Discover our leasing options and get our top deal
Thinking about leasing a company car? Not sure which options are available? Below is an overview of all our available leasing options. That way you can determine which type of leasing is right for you. What's more, our partner Arval has a top deal, valid until 30 November 2024: drive the new electric BMW iX1 eDrive20 or BMW i4 Gran Coupé for a very advantageous all-in price.
Financial or operational leasing?
The same reasoning applies to both financial and operational leasing: you pay a leasing company for a specific period, usually four or five years. In both cases, the leasing company is the legal owner of the car. You do, however, have the option to purchase the car at the end of the contract. In financial leasing, the amount of the purchase option is known from the start of the contract whereas with operational leasing, the amount is determined at the end of the contract based on the car's market value.
'Including services'
This is one of the major advantages of operational leasing versus financial leasing: the taxes, (comprehensive) insurance, maintenance and costs (except fuel) are all included in the rental price. What's more, you enjoy additional services such as summer and winter tyres, roadside assistance and a replacement vehicle. All you need to do is pay a specific amount each month and that's it. In short, you get to drive with peace of mind: everything has been paid for, except for the fuel.
Tax implications?
The purchase option has tax implications: for a financial lease, you depreciate the investment asset and deduct the interest on your tax return. The car is listed as an asset on your balance sheet. For an operational leasing contract, the full rental price is processed as a cost. Tax deduction limits apply in both cases and you may have to take the professional use of the car into account. Equally important: the VAT is paid monthly on the rental price and not in one go, allowing you to use your lines of credit for other investments.
Get our top deal
Our exceptional offer is valid until 30 November 2024: you can lease the new electric BMW iX1 eDrive20 or BMW i4 Gran Coupé under an operational leasing contract at an affordable and exclusive price, including all services.
Arval Belgium SA, Ikaroslaan 99, 1930 Zaventem – RPM Bruxelles – TVA BE 0436.781.102, intermédiaire en assurances à titre accessoire, inscrit auprès de la FSMA sous le numéro 047238 A. Sous réserve d’acceptation de votre demande.
Arval Belgium nv, Ikaroslaan 99, 1930 Zaventem – RPR Brussel – BTW BE 0436.781.102, nevenverzekeringstussenpersoon geregistreerd bij de FSMA onder het nummer 047238 A. Onder voorbehoud van aanvaarding van uw aanvraag.
04.09.2024
Arval: mobility for work and life
Today, many employees see mobility as a need they address with their employer. They have moved beyond relying solely on the private car to get around, instead using a mix of mobility solutions – private, public and mixed. Belgian companies are therefore increasingly looking for expert advice on the perfect mobility mix, adapted to their own professional needs and the needs of their staff. Arval’s mobility specialists show how mobility is evolving and how to handle it accordingly. This not only takes knowledge, but also guidance to support employers in this area.
Philippe Kahn, Mobility Solutions Expert, sums up Arval’s vision and mission: “Life is a journey made of journeys. This means that we at Arval are constantly asking ourselves how we can support and relieve small, medium-sized and large enterprises in all the mobility issues they face. Our DNA as a supporter is built on two key aspects that add value: personal and sustainable mobility*. From individual firms to large companies, Arval offers its corporate know-how and provides a one-stop-shop solution."
* Sustainable mobility: mobility with lower greenhouse gas emissions, which promotes electrification, soft mobility and/or public transport.
Sustainable mobility: a natural progression
Many companies are now fully focused on sustainable mobility or are evolving in this direction. This means not only opting for electric cars, but also looking at new mobility solutions with an open mind. Arval has a role to play in this: all customers are informed and guided in their pursuit of sustainable mobility. For many companies, new mobility solutions such as Arval Bike Lease, Arval Car Sharing and the future budget management tool are key to a balanced mobility strategy.
A big asset in the “war for talent”
Moreover, all these options are not just seen as pure transport options but fit into a Human Resources strategy that companies are deploying in the “war for talent”. Philippe Kahn is increasingly dealing with companies that prioritise mobility solutions. They see it as an opportunity to strengthen the bond with their employees or to attract new ones.
Kahn explains: "Many companies think about their location in terms of mobility. For example, they prefer the proximity to a mobility hub, such as a major railway station like Brussels-Central or Antwerp-Berchem. This allows them to offer their employees the full mix of mobility options, including coming to work by bike or scooter, traveling by pool car or train, using buses and shared cars, and more. And they can pay for all this with the mobility budget they receive from their employer."
Added value: business and personal
Arval’s budget management tool provides companies with a comprehensive overview of all their employees’ used mobility solutions and the associated costs. This is just one aspect of the added value companies get. Mobility consulting is also an integral part of what Arval offers.
Kahn: "If a company of around 100 employees plans to move to the centre of Antwerp, we sit down with them to see what new mobility solutions they'll need and how much it will all cost. This way, we're truly part of the team and together we look at the effects of all possible mobility solutions on their future. This is customisation, where we put our expertise at the service of our customers."
This expertise often leads companies to take a step forward in their business management and to better support their staff."
Kahn continues: "The days of using an Excel file to keep track of pool car usage are over. Apps on phones or computers make everything easier and smoother. They keep track of the location of pool cars between the various branches and blur the line between pool and shared cars. For example, employees can use a car privately during the weekend – albeit for a fee – and for business travel during the week. Support for leasing an electric bicycle is also included. Arval relieves employers and gives them extra assets to support their employees in their private mobility too. Through their mobility offerings, companies can support their employees' daily lives, both in and out of the office.”
Arval Belgium SA/NV – Ikaroslaan 99, 1930 Zaventem – Brussels Register of Companies – VAT BE 0436.781.102, secondary insurance mediation, FSMA no. 047238 A. Subject to acceptance of your application.
25.06.2024
Start your transition with Climact
How can we turn the constraints of the energy transition into a strategic opportunity? “With rigour and pragmatism,” says our partner Climact.
"We support and advise businesses so they can take action and achieve more climate maturity. This includes addressing climate-related obligations, such as the sustainability reporting required under the European Corporate Sustainability Reporting Directive (CSRD)," explains Jerome Meessen, Associate Partner at Climact. "We ensure they get real added value from this, the most tangible result being a reduction in their energy bills or improved resilience of their supply chain and customers in the face of the climate transition. Our approach is both rigorous and pragmatic. Rigorous because we base ourselves on figures and use standardised methods, such as the Greenhouse Gas Protocol, for calculating a company's carbon footprint, thus avoiding the pitfalls of greenwashing. And pragmatic because we always adapt to the company's reality. "
A 5-step process
So, how does Climact support businesses and public organisations?
Jerome Meessen: "Firstly, we help them understand the effects of climate change they are or will be facing. We do this by mapping opportunities and risks, such as flooding of a production site or the risks associated with high carbon prices. We also assess their current impact, i.e., the carbon footprint of their operations. The next step is their vision for the future, in which we define sustainability goals with them, referring to the international standards of Science Based Targets initiative where relevant. We then help them develop a detailed transition plan and implement it on the ground, allowing them to define the content and details of a green energy purchase agreement, for example. Finally, we provide support for communicating their commitment, in line with the CSRD requirements."
CSRD: burden or strategic opportunity?
Many businesses are subject to the CSRD, which enters into force this year, and its reporting process. “The directive aims to provide maximum transparency on how businesses manage their sustainable transition,” says Jerome Meessen. "The reporting focuses on environmental, social and governance (ESG) aspects. "This also allows stakeholders and especially investors to get an objective idea of the progress made, as well as a company's climate ambitions and its exposure to climate change risks."
“The CSRD sustainability reporting is a significant burden for companies,” adds Jérémy Robinet, who coordinates the partnership with BNP Paribas Fortis. "You must adhere to a specific methodology and standards, fill in forms, provide indicators... But it is also an opportunity to develop a solid, well-founded transition strategy that will benefit the company, including its reputation. Businesses can save time with our support, knowing that their reporting complies with regulatory constraints and that their ESG approach creates value and is meaningful."
Climact, a partner of BNP Paribas Fortis
Climact is one of several partners selected by BNP Paribas Fortis to support its corporate customers with non-financial issues. “At the initiative of the bank’s Relationship Manager, we meet companies who want to make progress in terms of their energy and sustainable transition, more specifically for their decarbonisation strategy and to draw up their carbon balance sheet,” explains Jérémy Robinet.
Gilles Roumain, Sustainability Program Officer at BNP Paribas Fortis who oversees the partnership with Climact, says: "The collaboration with Climact allows us to provide solutions to our customers, support them in decarbonising their activities, and continue to build our expertise on these decarbonisation issues. By offering this support, we also reduce our carbon footprint."
“The companies that the bank has referred to us come from all industries,” says Jérémy Robinet. "They are larger companies, e.g., with a turnover of at least 25 million euros or a complex supply chain. This partnership has already led to fifteen collaborations, including with garage door manufacturer RE Panels.
We initially assisted them with drawing up a carbon balance sheet in line with European CSRD requirements. Management then realised the strategic interest of our work and asked us to perform more specific analyses by product and production site. This, in turn, allowed them to identify best practices. RE Panels really appreciated our approach. We calculated the cost, gains and investment amount for each carbon footprint improvement objective. They also commended us for our rigorous alignment with international standards, a key element to avoiding greenwashing pitfalls."
12.06.2024
We need to move forward together
Since 2019, the bank has reduced its CO2 emissions per full-time equivalent by 55%. And according to Sandra Wilikens, Chief Human Resources Officer, everyone must play their part.
Between 2019 and 2022, the bank succeeded in reducing its CO2 emissions by 55%. So how did you do this?
"Mainly by focusing on the energy efficiency of our buildings, which account for approximately 80% of our immediate emissions. We also optimised our real estate and significantly reduced business travel. We settled on a structured approach involving all departments. Since 2012, our Green Bank Platform has gathered the contact persons of each department every quarter, allowing them to present an action plan with their initiatives. They then develop a series of KPIs on energy and paper consumption, business travel, the electrification of the vehicle fleet, waste management, etc. Because measuring is knowing."
The target was to achieve a 42.5% reduction in emissions compared to 2012 by the end of 2025. A goal we have since achieved. What else is in the pipeline?
"We have no intention of resting on our laurels until 2025. Because there is no time to waste if we want to be carbon neutral by 2050. Our new headquarters at Montagne du Parc in Brussels is a good example of energy efficiency, but there is still a room for improvement in the rest of our real estate. We will improve the energy efficiency of the various regional offices, install solar panels in more than 80 branches, and LED lighting will become standard in all our buildings. These efforts must allow us to reduce our CO2 emissions by another 7%."
How much progress have you made in terms of the electrification of your fleet?
"We are making a sustained effort to electrify our fleet, and I think we are on the right track. At the end of 2022, just under 30% of our fleet of leased company cars was electric – 100% electric and plug-in hybrids. In the third quarter of 2023, these cars accounted for 95% of new orders. This was largely due to the new car taxation. But for employers, it doesn't stop there. They must deal with a complex tax framework, including the reimbursement of electricity costs. Some of our staff members also face obstacles, for example, because they have difficulty accessing a charging station. I intend to organise a mobility roundtable this year. The aim is to bring governments, operators, start-ups and companies together. Because we have to move forward and are all in this together."
How do you ensure sufficient employee engagement?
"With a lot of communication. You need to explain what you are doing and why. That is the only way to get people to cooperate. We have a network of more than 200 EcoCoaches within the bank. The sustainability compartment of CBA 90 also inspires. We set six specific objectives each year. If we achieve at least three, all staff members receive a bonus at the end of the year. To date, this has been a success. We also have other incentives. With our “Green Fuel Consumer Plan”, we reward staff members who have a company car but use it sparingly. We are also launching many campaigns to promote soft mobility, such as walking, cycling and public transport. The decision to base our offices in cities is also positive. At the end of 2022, 79% of the employees working in Brussels used public transport to get to work. Outside cities, 60% of employees do this."
Finally, can you think of any issues that need to be addressed urgently?
"Digital pollution is often underestimated. To give you an idea: sending 100 mails emits just as much CO2 as driving twenty kilometres. That’s why we organise an internal campaign every year to raise awareness among our staff members and give them tips on how to reduce their digital footprint. Regularly cleaning up your mailbox, sending links instead of files, deleting outdated files: all little things. But if our 11,000 colleagues do this daily, we can make a big impact. Every effort counts!"