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.

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. ■ 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. 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. 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
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INTER-
MEDIARY
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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
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S
S C
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INTER-
MEDIARY
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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. 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. THANK YOU FOR YOUR ATTENTION!
peter.moricz@uni-corvinus.hu
November 11, 2016P. Moricz: The business model of the leading sharing economy platforms 8.