The Death of Ownership
Change is not a singular event. While it’s impact may appear to be abrupt and all encompassing, it is typically the consequence of underlying mechanics that have subtly been at play for some time, ultimately precipitating in the wake of a seismic event.
The COVID pandemic surely qualifies as a seismic event — but what is expected to change, and more importantly, what has been brewing in the background over the years that can be attributed to this change? To answer this, we must first address a critical paradigm shift that has taken place at the core of our evolutionary psychology.
Our evolution fundamentally links our survival to resource availability. Be it food, oil, shelter, transport, or any commodity, our mental constitution has driven us to obsessively seek the relentless production of resources. Our desire to hoard and own resources further satiates our perception of safety. This has been the lay of the land since the first documented instances of humanity. Curiously, as humans have operated under this governing principal, evolution has also been evolving. As natural selection favors behaviors that better deliver safety and survival, it has ascertained that efficiency in the utilization of resources is potentially superior to its over-production. This is particularly true when factoring in resource scarcity.
There has been no shortage in the proof of concept. Be it Uber, Airbnb, Deliveroo, Amazon and countless other examples, we have seen a profound increase in productivity by utilizing existing resources more efficiently. Typical to all marked progression, technology has mediated this process by optimizing the communication between supply and demand. Essentially, complex and intricate communication mediums are the basis of elevated intelligence. The benefits do not stop here. By increasing utilization factors, we further ensure the survival of planet earth, through sustainable practice. For evolution, survival applies to biology, and equally, to the biospheres that host us.
Being subjected to this fact and witnessing its success, evolution has been imprinting a new paradigm of thought into our collective consciousness . A new thinking that begs the question: What is the utilization factor of the things I own? As a business, do we need large office spaces, considering the work from home model has succeeded throughout the pandemic? Do I need a car that I use 2 hours a day, when I can access Uber? Do I need a large house with a kitchen I use a few times a month, while seemingly infinite food services exist? Do I need to own a laundry machine, when a cleaning service is an app away?
These questions have been in circulation for some time now. What they lack in novelty are compensated for by way of their current urgency. The economic strain created by the pandemic will undoubtedly expedite the answer: The financial behavior of individuals will shift towards pragmatic austerity that maximizes monetary utility while limiting perceived ownership value.
A new breed of highly mobile individuals who favor utility and flexibly over hoarding and possession, will emerge. A global citizen who does not wish to be bogged down with the weight of product and property. These individuals seek the appeal of a decentralized lifestyle. With an office that can be accessed from any of the major cities’ communal workspaces, and with a house that can be instantly turned into a home on Airbnb, the proverbial ship will break free from its anchor. We will migrate into a model whereby we are all tethered to a common pool of resources that can be dipped into exclusively based on need. Our social fabric will be restructured to decouple the positive attribution that has historically been associated with ownership. Growing up, it was cool to own a car. Now, its savvy to use Uber. The desire to own products will recede, replaced by our inclination to access managed services on the fly. Evolution will be keen to dissolve the remnants of any mental pleasure derived from tangible possession, in its pursuit of efficiency. As increasing utilization dampens the demand for fixed assets, value propositions will shift into technologies that optimize the pathways between supply and demand. The quality of this augmentation will represent the underlying value. The definition of what an asset is, will change at the most fundamental level. The final moments of this pandemic will witness the death of ownership as we know it. The sun will set on many businesses of old, only to rise again over those with the fortitude to embrace this brave new world.
