Growth of the sharing economy 3 executive summary 5 main drivers 9 main features of sharing economy companies12 business models a contender for the throne 14 emergence of the model in certain key sectors 16 i. This relatively new business model is definitely expanding. The first article looked at opportunities created by the sharing economy and shed light on consumer attitudes toward sharing derived from extensive market research conducted in germany, india, and the us. Studies in southeast asia have found that sharing economy businesses do not always. The main innovation in the sharing economy business model comes from the. Technology makes the difference business models that are based on the provision of access are not new babione, 1964. Several definitions have emerged for the sharing economy over time but there has been no consensus about a commonly accepted. In this study, a business model, which can be considered as a blueprint to introduce the sharing economy to business between enterprises, is presented. The second article examined companies strategic options for turning potential threats posed by the sharing economy. A strategic framework for a profitable business model in. Business models of the sharing economy to d escribe the business models proposed by the sharing economy, we analysed a total of 12 representative company f or the sharing economy. A successful business model in the access economy will not be based on community, however, as a sharing orientation does not accurately depict the benefits consumers hope to receive. Besides, this study showed that sharing economy companies tend to develop synergies with traditional economy companies to ensure their business model. Platforms in the peertopeer sharing economy emerald insight.
The most widespread business model deployed by sharing economy companies features an online market place through which the demand for certain assets or. The sharing economy is an economic model often defined as a peertopeer p2p based activity of acquiring, providing or sharing access to goods and services that are facilitated. Airbnb, snapgoods and 12 more pioneers of the share economy. More broadly, regulators and governments have started to question the longterm impact of the sharingeconomy business model on incumbents and communities. Making sense of the many business models in the sharing. Our research identified seven common reasons for the failures and four. But there are countless other sharing economy platform businesses as you have seen last. The sharing economy business model utilises already existing assets. Conceptualizing the sharing economy through presenting a. Attitudes and motivations of consumers in sharing economy. Business model innovation for growth and renewal boston, massachusetts.
The sharing economy and how it is changing industries. Sharing economy is a process of consumption and production in which the accent goes on shared access to resource, recirculation and reutilization of resources. The rapid growth of successful sharing economy businesses like airbnb and uber poses a threat to traditional value chains. The sharing economy is one of the most fascinating economic phenomenons weve seen in recent history. The business model for the sharing economy between smes. The business of sharing automotive retail and consumer goods hospitality entertainment, media and communications v. For this purpose, the previous documentary researches on the said.
Sharing economy shakes up traditional business models. They have the potential to drive the transition towards a more resource efficient and circular economy and, in doing so, significantly reduce the environmental pressure resulting from. We have compiled a profile of failed sharing businesses so that others can learn from their mistakes. However, many lesserknown sharing platforms have faced serious setbacks and ceased to operate. While its business model is clearly a winner, airbnb, along with the other companies in the business space, have overlooked some legal covenants for which they are now being. The mayor of paris, for example, set up a team of 20 agents specifically to crack down on illegal roomsharing hosts. The sharing economy is the peertopeer based activity of obtaining, giving, or sharing access to good and services. The current and future state of the sharing economy. When the idea first became widely recognized in 2011, it was dubbed by time magazine as one of the ten ideas that will change the world. It is also not known how sharing economy firms can benefit from a combination of different business models. This fastgrowing business model has been defined as a peertopeer activity of. Companies embracing this model develop technology that allows supply to meet demand with less friction and fewer transaction costs. How the sharing economy can make its case mckinsey. Think of shared washing machines, ski rentals, or the redistribution of secondhand goods.
Factors driving the growth of the sharing economy include the flexibility the business model offers and the convenience of online access to shared goods and services. It is at once one of the most powerful yet vulnerable business models out there. The traditional business model, which has thrived for decades, had clear distinction between companies and. Each business model is examined regarding three dimensions. This is the last of three articles on the sharing economy. The sharing economy was originated in the united states in the 1990s, driven by technological advancements that led to cost reductions in online peertopeer transactions shirky, 2008, thus making it feasible to create new business models based on.
It explores current status, growth, success factors for further breakthrough and mass acceptance. The dark side of the sharing economy world economic forum. The motives of nonuse, or of interrupted use of platforms. Share economy 2017 the new business model this report analyzes the size and the acceptance of the share economy in the six european countries austria, belgium, germany, the netherlands, switzerland and turkey. C ollaborative consumption, or the sharing economy as it is also known, refers to the business model that involves individuals sharing their resources with strangers, often enabled by a third partys digital platform. In what is called collaborative consumption, the sharing economy or the peer economy, owners rent out something they are not using, such as a car, house or bicycle to a stranger using these peer. Firstly, it discusses the business models of the sharing economy. If the issues of the sharing economy can be overcome, it could transform the business models on which the economy has relied for years. The main innovation in the sharing economy business model comes from the technology platforms and mobile apps that bring together and aggregate demand and supply in ways that were not possible before faster, cheaper and more efficiently allocated and coordinated including in.
Now is the time we must take this knowledge to the next level. They generally do not have to purchase or produce these assets. However, the sharing economys implications for marketing thought and practice remain unclear. Pdf business models of the sharing economy researchgate. The sharing economy was coined from the idea that people allow strangers to use their personal items, much like sharing. The main features of a sharing economy business model are.
There is also a possible role for blockchain in a newer segment of business. Business model diversification in the sharing economy. Despite its success, its hit a bit of a roadblock recently, with tough legal battles and a few early company casualties. A snapshot of the sharing economy by the numbers perspective from industry specialists iii. The evolution of sustainable business model innovation. While the honeycomb model has been of great use in framing the diversity of sectors being impacted or disrupted by the sharing economy, it does not provide any insights on the underlying business.
A comprehensive business model framework article pdf available in journal of cleaner production 2 december 2018 with 1,806 reads how we measure reads. The sharing economy allows access to physical assets, rather. Sbm innovation business models and business model innovation have received substantial attention in literature and industry, and it is increasingly suggested that business model innovation is a key to business success2325. Because many of these businesses are private, its impossible to know the actual size of the sharing economy. Business model for the sharing economy between enterprises. Sharing economy shaking up traditional business models. By unlocking the sharing economy today, can companies. As a result, 20 owners of 56 such apartments incurred large fines. This article defines the sharing economy as a technologically enabled socioeconomic system with five key characteristics i.
If potential drivers were not willing to join uber, it would fail. Katarina stanoevskaslabeva, vera lenzkesekamp, and viktor suter. The sharing economy oxford martin school university of oxford. It can help to scale up the business extremely fast. Insuring the sharing economy american international group. Business models, sharing economy, peertopeer marketplaces, rentals, manufacturing suggested citation. Sharing platform business model value chain updated airbnb and uber are the two most prominent examples of how to apply the platform business model to the sharing economy.
A low barrier to entry for participants and minimal regulations have also increased the number of people opting to leave the traditional workforce and join the sharing economy as. The motives and obstacles of participation in the sharing economy. An analysis of airbnb business model and the factors that influence consumer adoption. Manufacturing durable goods in the presence of peertopeer rental markets february 10, 2020. Despite the latter, at least in san francisco, there is. The most common revenue model of the platform provider is to charge a service fee for the matchmaking service. Consumers overall perception of the sharing economy. The sharing economy is a business model gaining momentum as it challenges incumbents in nearly every industry. The business model of the sharing economy consists of a firm, or service enabler, which acts as an intermediary between the suppliers of a good or service service provider and customers who demand those underutilized goods and services. Essentially, the sharing economy is creating a business venture by renting personal items or providing services to people found online in a digital community. Business models, market transaction, governance structure and culture of sep, which, are all impacted by the fifth. Reasons for failures of sharing economy businesses by. In 2011, sharing was nominated as one of the 10 ideas that will change the world. Second, the authors contrast platform business models with their pipeline business model counterparts to understand the fundamental.
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