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Five ways to boost Sweden’s sharing economy

How can Sweden ensure that the sharing economy is put to the best use? Mattias Goldmann from liberal-green thinktank Fores shares his five best strategies.

Five ways to boost Sweden's sharing economy
Taxi driver protesting Uber in Brazil this month. Photo: AP Photo/Eraldo Peres

Everything from cars to drilling machines are left unused for the majority of time. Sharing resources is effective, eco-friendly, and can save money both for individuals and society. Here are five suggestions to achieve an optimal sharing economy.

1. Secure the climate's health

Carpooling is often seen as an important part of the sharing economy. An individual car is unsed 23 out of 24 hours per day which is poor usage of resources. But the business model must be right; options such as Car2Go charge per minute, making drivers step on the pedal just to reduce prices. This not only increases exhaust emissions, but also worsens traffic safety.

2. Protect what we've got

After many years' work from legislators, large clients and active consumers, all major taxi companies in Sweden use almost only green cars, which has laid the foundation for making it possible for everyone to refuel on biogas or recharge with electricity. Now, this is challenged by Uber, who's climate standards are next to nothing and green cars far fewer than the taxi industry. When we choose new business solutions we have to protect what we have already achieved.

3. Include a social dimension

The sharing economy is painted as a new social contract where trust is created through collective access. However, the reality is often different. This is shown especially in the prime example of the sharing economy: AirBnB. Many cities now prohibit such a way of sharing housing, because permanent residents are in the minority and no one takes responsibility for the maintenance of the area. There must be a clear social dimension.

4. Learn from experience

The sharing economy is far from new. For example, libraries have been around so long that they must add other services that are further from the idea of sharing in order to stay relevant, and many housing associations are closing their communal utility and hobby rooms. Let us systematically learn from those who have the experience of sharing.

5. Collaborate

Sharing economy examples such as Uber and AirBnB have lead to violent protests, but increased collaboration can solve quite a bit. When the transport industry engages in carpools, they reach customers who would normally never buy their products, and contribute to a decreased environmental impact without government regulation. Let us develop this insight about mutual gain so that the sharing economy becomes less of a challenge.

Shifting to a sharing economy is something big and valuable. Let us design it well.

This article was written by Mattias Goldmann, CEO of green and liberal thinktank Fores and first published by GP. It was translated from Swedish to English by The Local's intern Tilly Olsson.

FOOD AND DRINK

OPINION: Are tips in Sweden becoming the norm?

Should you tip in Sweden? Habits are changing fast thanks to new technology and a hard-pressed restaurant trade, writes James Savage.

OPINION: Are tips in Sweden becoming the norm?

The Local’s guide to tipping in Sweden is clear: tip for good service if you want to, but don’t feel the pressure: where servers in the US, for instance, rely on tips to live, waiters in Sweden have collectively bargained salaries with long vacations and generous benefits. 

But there are signs that this is changing, and the change is being accelerated by card machines. Now, many machines offer three preset gratuity percentages, usually starting with five percent and going up to fifteen or twenty. Previously they just asked the customer to fill in the total amount they wanted to pay.

This subtle change to a user interface sends a not-so-subtle message to customers: that tipping is expected and that most people are probably doing it. The button for not tipping is either a large-lettered ‘No Tip’ or a more subtle ‘Fortsätt’ or ‘Continue’ (it turns out you can continue without selecting a tip amount, but it’s not immediately clear to the user). 

I’ll confess, when I was first presented with this I was mildly irked: I usually tip if I’ve had table service, but waiting staff are treated as professionals and paid properly, guaranteed by deals with unions; menu prices are correspondingly high. The tip was a genuine token of appreciation.

But when I tweeted something to this effect (a tweet that went strangely viral), the responses I got made me think. Many people pointed out that the restaurant trade in Sweden is under enormous pressure, with rising costs, the after-effects of Covid and difficulties recruiting. And as Sweden has become more cosmopolitain, adding ten percent to the bill comes naturally to many.

Boulebar, a restaurant and bar chain with branches around Sweden and Denmark, had a longstanding policy of not accepting tips at all, reasoning that they were outdated and put diners in an uncomfortable position. But in 2021 CEO Henrik Kruse decided to change tack:

“It was a purely financial decision. We were under pressure due to Covid, and we had to keep wages down, so bringing back tips was the solution,” he said, adding that he has a collective agreement and staff also get a union bargained salary, before tips.

Yet for Kruse the new machines, with their pre-set tipping percentages, take things too far:

“We don’t use it, because it makes it even clearer that you’re asking for money. The guest should feel free not to tip. It’s more important for us that the guest feels free to tell people they’re satisfied.”

But for those restaurants that have adopted the new interfaces, the effect has been dramatic. Card processing company Kassacentralen, which was one of the first to launch this feature in Sweden, told Svenska Dagbladet this week that the feature had led to tips for the average establishment doubling, with some places seeing them rise six-fold.

Even unions are relaxed about tipping these days, perhaps understanding that they’re a significant extra income for their members. Union representatives have often in the past spoken out against tipping, arguing that the practice is demeaning to staff and that tips were spread unevenly, with staff in cafés or fast food joints getting nothing at all. But when I called the Swedish Hotel and Restaurant Union (HRF), a spokesman said that the union had no view on the practice, and it was a matter for staff, business owners and customers to decide.

So is tipping now expected in Sweden? The old advice probably still stands; waiters are still not as reliant on tips as staff in many other countries, so a lavish tip is not necessary. But as Swedes start to tip more generously, you might stick out if you leave nothing at all.

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