The business model of the platform based and sharing economy

Abstract

Platform business models have become omnipresent in the current world. From booking homes, cars, vacations or purchasing electronics, groceries etc. – everything is done on platforms. In this context, platforms have enabled business models pertaining to the sharing economy – wherein people are able to lease their assets in a unified platform. Our study looks at what drives business models and competition in this new era of platform-dominated business models, and how some industries and their incumbents have evolved their strategies to tackle the intense competition and are able to differentiate themselves.