The sharing economy
New opportunities, new questions Global Investor, 02/2015 Credit Suisse
New opportunities, new questions
Global Investor, 02/2015
Credit Suisse
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GLOBAL INVESTOR 2.15 — 11<br />
Amul<br />
cooperative<br />
Photos: Page 8/9: bpk / Otto Haeckel, Thomas Wakeman / <strong>The</strong> People’s History Museum, Manchester / Bridgeman Images, Yaacov Ben Dov, <strong>The</strong> Israel Museum, Jerusalem, Israel / Bridgeman Images, INTERFOTO / Granger, NYC<br />
Page 10/11: Archivio SECAB Società Cooperativa, Fondazione Memorie Cooperative, Keith Lewis Archive / Alamy Stock Photo, David Falconer / National Archives<br />
Ride<strong>sharing</strong><br />
1946<br />
UNITED<br />
STATES<br />
During World War II,<br />
the US government<br />
encouraged ride <strong>sharing</strong><br />
to conserve resources<br />
for the war effort. In July<br />
1941, the Office of the<br />
Petroleum Coordinator,<br />
established by Roosevelt,<br />
launched a petroleum<br />
and rubber conservation<br />
campaign asking<br />
drivers to use 30%<br />
less gasoline by various<br />
measures that included<br />
<strong>sharing</strong> rides. This initial<br />
effort had little impact.<br />
<strong>The</strong> petroleum industry<br />
then formed a products<br />
conservation committee<br />
that relaunched the<br />
ride-share initiative<br />
through widespread use<br />
of media such as posters.<br />
While the ini tiative’s<br />
success proved hard to<br />
measure, the posters<br />
were widely recognized.<br />
1946<br />
INDIA<br />
Around the time of<br />
Indian independence in<br />
the mid-1900s, small<br />
rural farmers relied on<br />
middlemen to get their<br />
milk to market. <strong>The</strong><br />
farmers were frequently<br />
exploited by both the<br />
middlemen and larger<br />
milk contractors, which<br />
set milk prices arbitrarily.<br />
In 1946, in the small<br />
town of Anand, in the<br />
state of Gujarat, farmers<br />
approached independence<br />
leader Sardar<br />
Patel for advice. He<br />
suggested that they<br />
bypass the middlemen<br />
by forming their own cooperative<br />
and supplying<br />
milk directly to the<br />
government-run Bombay<br />
Milk Scheme themselves.<br />
After striking to<br />
show their determination,<br />
the farmers set<br />
up the Kaira District Cooperative<br />
Milk producers<br />
Union Ltd., which at<br />
the time consisted of<br />
two village dairy cooperative<br />
societies and 247<br />
liters of milk. <strong>The</strong> cooperative<br />
societies proliferated<br />
and gave rise to<br />
a three-tiered structure<br />
comprising dairy cooperative<br />
societies at the<br />
village level, a milk union<br />
at the district level and a<br />
federation of member<br />
unions at the state level.<br />
In 1957, sensitive to<br />
the importance of branding,<br />
social entrepreneur<br />
Verghese Kurien<br />
launched the Anand<br />
Milk Union Ltd. (Amul) to<br />
export the dairy cooperative<br />
idea to other<br />
states. Finally, in 1965<br />
the Indian government<br />
created the National<br />
Dairy Development<br />
Board to replicate the<br />
Amul model. Today, the<br />
Amul cooperative is<br />
the largest milk producer<br />
in the world and<br />
enjoys annual revenues<br />
of over USD 3 billion.