
In a recent Fast Company article, Jeremiah Owyang (@jowyang), who recently shared his insights at OuiShare Fest on the collaborative economy, sheds light on how tech startups can turn a profit while simultaneously rewarding their community. Over the last decade, concern has risen over just practices within the sharing landscape. Various lawsuits, involving big names like Uber and Postmates, have brought this issue to the masses.
Etsy, on the other hand, thinks you can appease Wall Street while rewarding creators and partners. Although Etsy has filed for B corporation status, aligning it with big corporations like Walmart and Coke, it has also offered shares to its vendors and small investors to the tune of $2,500 in shares before the company went public. While some question Etsy’s profitability, the market seems to be reacting positively to the IPO, now worth a market cap of 2.4 billion dollars.
“So how will Etsy be able to balance out the needs of investors while serving its social good mission? One way is by offering creatives and partners the opportunity to purchase equity in the company before the IPO.”
Awarded 5% of Etsy’s shares, these providers have already seen their stock rise 39% since the IPO.
As we move forward, companies that are more likely to succeed in the long run are those that reward their vendors as this fosters long term loyalty and engagement. Will companies such as AirBnB or Lyft follow in Etsy’s footsteps? They should because when all sides feel valued, the community becomes a true force.