Understanding Collaborative Consumption Business Model: Case of Car Sharing Systems

Abstract

Collaborative consumption models are increasingly prevalent across the world due to their environmental, social and economic benefits. To understand how collaborative consumption models run in practice, this paper performs an investigation on five car sharing systems which are successful startups built on collaborative consumption. A comparative analysis framework including service pattern, convenience, revenue stream and reputation system is developed. Then the business models of car sharing system are shaped along these four dimensions. The insights gained in this study can help car sharing operators to promote their services further through considering key issues of various business models and constructing a reasonable business model portfolio for their car sharing systems.