Why Platform Co-ops?
Naija CooperativeNews…Platform Co-ops are where the Co-operative advantage meets digital business.
The rise of the platform economy over the last decade promised to boost flexible employment, extra income, and collaborative consumption. Instead, the ‘disruption’ of the digital economy has exploited regulations, increased the precariousness of work, and created the conditions for digital giants to dominate markets.
We know most entrepreneurs don’t start their business with the view to ‘exit’, nor do they wish to lose control of their start-up to investors to cover upfront costs. Though we’re being told this is the only way.
There is another way
Could there be an alternative? Do innovation, and social impact always have to lose out?
Platform co-ops are owned and governed by their members. They are stakeholder, not shareholder-driven businesses, focused on democratic control, shared ownership, and a sustainable relationship between social purpose and profitability.
The model is based on co‑operative principles and offers the opportunity to raise equity from those who value your business the most – your employees and users.
A global movement
Join a global movement of entrepreneurs building ethical digital businesses. We’re here to help, whether you intend to start a new venture or ‘exit’ your platform business to your community.
A platform co‑op primer
Here is a brief overview of what a platform co‑op is and isn’t. You can download a PDF of this resource below, as well as a text-only version.
Platform Co-operatives – What It Is!
Platform Co-operatives – What It Is!
A business that is owned and governed by those who depend on your platform the most – your employees and users.
A way to embed social purpose and values from the beginning of your business journey
.A way to invite your employees and users to become co-owners of your existing business\
| A way to empower your employees and remain transparent and accountable to your users. |
| A member-centred approach that allows you to build better products and services, faster. |
| A broad range of flexible membership models that can work for any platform business. |
| As with other business models, suitable for all sectors and industries. |
| A new option for scaling your business. |
| A way to raise investment from your community through equity crowdfunding. |
| An opportunity to be part of a global movement of ethical entrepreneurs transforming the digital economy. |
What It Isn’t
A startup pipeline to sell your venture to a bigger company or external investors.
The loss of your purpose and creative control to the demands of investors.
An option that is only suitable for brand new start-ups.
| Unnecessary bureaucracy that slows down decisions and makes it less agile than investor-owned businesses. |
| An inexpensive way of crowdsourcing ideas and acquiring customers. |
| An undynamic legal model that is inflexible and unwieldy for contemporary digital culture. |
| Just for developers or technology-first businesses. |
| A business model that can only scale through offering large financial returns to its investors. |
| A charitable initiative that relies only on donations and grant funding. |
| A disruptive sector that is built on and dependent on undermining regulation, suppresses wages, and creates poor working conditions. |
SOURCE: UnFound Cooperatives UK
