When Uber and Lyft went public, it wasn’t the motorists who got abundant– it was the executives, financiers and some early staff members. In a period when it has ended up being clear that tech executives and financiers are regularly the only ones who’ll gain benefits for a company’s success, cooperative start-ups are getting more attention.
Depending upon how it’s established, a cooperative model offers workers and users true ownership and control in a company; any profits that are generated are returned to the members or reinvested in the business.
Co-ops aren’t brand-new: The nation’s longest-running example is The Philadelphia Contributionship, a mutually owned insurance provider established by Benjamin Franklin in 1752. In 1895, the International Co-operative Alliance formed to function as a way to unite cooperatives throughout the world. Some colleges have student-run real estate co-ops where cleansing, food preparation and other responsibilities are shared. Today, there are numerous widely known large-scale co-ops, consisting of outside leisure shop REI, Arizmendi Bakery in San Francisco and Blue Diamond Growers, among the world’s largest tree-nut processors.
What’s novel, nevertheless, is applying the co-op design to innovation start-ups. Start.coop, an accelerator for cooperative startups, is simply one group trying to assist in that practice.