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Research Centre of Information
Resources Management
H-1093 Budapest, Fővám tér 8.; H-1828 Budapest, PO Box 489.
Phone.: (1...
■ What is the customer
value? What attracts the
customer segment?
What are the main
benefits and how we
help to solve prob...
Peer-to-peer nexuses are rooted in national
culture and social traditions
November 11, 2016P. Moricz: The business model o...
Sharing economy platforms made
peer-to-peer transactions efficient
November 11, 2016P. Moricz: The business model of the l...
Radical progress in the value (quality&
quantity) offered by these platforms
November 11, 2016P. Moricz: The business mode...
Commission-based revenue streams
drive the most successful examples
November 11, 2016P. Moricz: The business model of the ...
Sharing economy as a form of (self-?)
employment: Major controversy
■ Additional income,
„be your own boss”
■ Flexible wor...
THANK YOU FOR YOUR ATTENTION!
peter.moricz@uni-corvinus.hu
November 11, 2016P. Moricz: The business model of the leading s...
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The business model of the leading sharing economy platforms like Airbnb and Uber

Conference paper, presented at the Sharing economy conference of the "Digital Welfare Program" run by the Cabinet Office of the Prime Minister of Hungary, Conference held at BME in Budapest, on 11th of November, 2016. Peter Moricz is associate professor at the Research Centre of Information Resources Management, Corvinus University of Budapest.

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The business model of the leading sharing economy platforms like Airbnb and Uber

  1. 1. Research Centre of Information Resources Management H-1093 Budapest, Fővám tér 8.; H-1828 Budapest, PO Box 489. Phone.: (1)4825377, (1)4825263; fax: (1)4825118 Internet: http://portal.uni-corvinus.hu/index.php?id=27095&L=1 The business model of the leading sharing economy platforms Conference of the Digital Welfare Program November 11, 2016 Peter Moricz, PhD, associate professor Budapest
  2. 2. ■ What is the customer value? What attracts the customer segment? What are the main benefits and how we help to solve problems? ■ What revenue streams cover the cost structure of the value proposition and architecture? How revenues make the model sustainable? The internet enables the peer-to-peer mode of value delivery in more and more industries ■ Which actors are involved in the value creation process and how we integrate their activities? November 11, 2016P. Moricz: The business model of the leading sharing economy platforms 2. VALUE PROPOSITION REVENUE MODELARCHITECTURE The dominant business model of sharing economy uses a peer-to-peer architecture. 3 M A I N Q U E S T I O N S O F T H E B U S I N E S S M O D E L S
  3. 3. Peer-to-peer nexuses are rooted in national culture and social traditions November 11, 2016P. Moricz: The business model of the leading sharing economy platforms 3. 1980s: Private apartments near lake Balaton Handmade products in Transylvania Private taxi culture in Kazakhstan Celebrated for selling homemade cakes
  4. 4. Sharing economy platforms made peer-to-peer transactions efficient November 11, 2016P. Moricz: The business model of the leading sharing economy platforms 4 ■ Open, voluntary, many to many ■ Peer-to-peer (C2C) value creation ■ Standardized, automated value integration ■ Transparency, building trust ■ Critical mass and network effect VALUE ARCHITECTURE S S S S S C C C C C INTER- MEDIARY S
  5. 5. Radical progress in the value (quality& quantity) offered by these platforms November 11, 2016P. Moricz: The business model of the leading sharing economy platforms 5 ■ Easy earnings ■ Global scale ■ Free? Cheap? ■ Exciting offers, abundance and diversity of supply ■ Supply and demand aggregation ■ Reviews and certificates ■ Streamlined, superfast processes, global consistency, IT-enabled ■ Intuitive interfaces, „fool proof” ■ Community values, lifestyle? Value proposition for suppliers MAIN VALUE PROPOSITION Value proposition for customers S S S S S C C C C C INTER- MEDIARY S
  6. 6. Commission-based revenue streams drive the most successful examples November 11, 2016P. Moricz: The business model of the leading sharing economy platforms 6 ■ Surprisingly, market-driven (fee-based) online sharing economy platforms outshined the free, community based versions ■ Free or advertisement model (less importance): donations, sponsorship, advertisement fees (eg. Couchsurfing) ■ Transaction fee model: commission imposed on the customers and/or the suppliers (eg. Airbnb) ■ Subscription model (rare): flat rate (time-based) fee paid by the customers and/or the suppliers for access, “featured” placement etc. (eg. HomeExchange) ■ Value-added services: revenue from complementary services (still dominated by third-parties, eg. Guesty) REVENUE MODEL
  7. 7. Sharing economy as a form of (self-?) employment: Major controversy ■ Additional income, „be your own boss” ■ Flexible working framework ■ Individual performance acknowledged (public reviews) ■ Easy to join to a new platform with better service or conditions ■ Business risks and costs (even investments) largely shifted towards the individuals ■ Major stress (work-life balance, uncertainty, responsibility), left without labour laws & job security ■ Middle management replaced by unpredictable or untrustworthy reviews, „fired by algorithms” ■ No way to transfer reputations across platforms create lock-in November 11, 2016P. Moricz: The business model of the leading sharing economy platforms 7.
  8. 8. THANK YOU FOR YOUR ATTENTION! peter.moricz@uni-corvinus.hu November 11, 2016P. Moricz: The business model of the leading sharing economy platforms 8.

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