Business Model Of The Sharing Economy

The sharing economy is a trend that makes it possible to create new business models that focus on the access and the reusage of products in order to increase utilization. The most important characteristics of the sharing economy are having temporarily access and not necessarily owning the products (Kathan, Matzler & Veider, 2016). These business models rely on technology, because they function through platforms that make them accessible, flexible and easy to share (Botsman & Rogers, 2011). Established industries are witnessing how fast the sharing economy grows and how new entrants form a sudden threat (Matzler, Veider & Kathan, 2015). In 2015 Airbnb had more than 35 million paying guests worldwide (Airbnb, 2015). While there is not a single

As long as there is access to these services their functions can be shared (Jonker, Stegeman & Faber, 2017). In this business model it is not about the sales of a product but the product has an owner who makes this product available to access, share, trade or rent to various users (Tukker, 2004). One of the drivers of the sharing economy is the pressure on the environment, this asks from us a more efficient way of producing and to come up with better ways to utilize existing assets. According to Botsman (2013), the environmental pressure to use finite resources more efficiently is one of the disruptive drivers of the sharing economy. When there is less demand for new products and fewer buildings are constructed, this will result in lower levels of energy consumption and eventually in lower amounts of carbon emissions (Frenken, 2016). Although when the sharing economy leads to more efficient use of assets and makes products and services cheaper (Frenken, 2016) it may not even lead to a more sustainable world, because of the rebound-effects. When something becomes cheaper, consumers tend to use it more often. According to Cohen and Kietzmann (2014) the success of companies, that make use of the sharing model, comes down to the use of technology and the internet that has become omnipresent. The information, communication and associated

One of the advantages is that many customers can look for a cab ride with Uber or a place to stay with Airbnb. The accessibility makes it very easy to come together. They both have rating systems that make it possible to review the ride or the accommodation that customers used. This transparent system creates trust among customers. Airbnb and Uber both state that people offering their spare room, apartment or a ride become entrepreneurs themselves. They claim that they make it