What is Airbnb's problem

Analysis of the sustainability of sharing business models using the example of Airbnb on the German market

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1 UNIVERSITY OF BUSINESS AND LAW BERLIN Analysis of the viability of sharing business models using the example of Airbnb on the German market Bachelor thesis in the Business Administration course in the Department of Economics Submitted by: Cem Acconcia Berlin, February 18, 2017 First examiner: Second examiner: Prof. Dr. Andrea Plinke Dipl. Oec. Andreas Nachreiner

2 Table of contents Table of contents List of figures ... II 1. Introduction Problem and objective Structure of the work Theory of business models Introduction to business models The business model canvas The environment of the business model The sharing business model Definition of the sharing business model Historical development Motives for sharing Forms of sharing business models Main areas of the sharing business models Sustainability of the Airbnb business model Airbnb internal company analysis Influences from the macro environment on the business model Influences from the micro environment on the business model SWOT analysis of the Airbnb business model Strengths Weaknesses Opportunities Threats Evaluation of the SWOT analysis Final consideration and outlook Final view Outlook Sources ... III I

3 List of figures List of figures Figure 1 - Business model canvas ... 6 Figure 2 - Channel types ... 8 Figure 3 - Corporate environment Figure 4 - Intermediate Figure 5 - Sharing practices Figure 6 - Distribution of sharing practices Figure 7 - Mobility Figure 8 - Accommodation area Figure 9 - Consumer goods area Figure 10 - Media / entertainment area Figure 11 - Clothing area Figure 12 - Nutrition area Figure 13 - Number of sharing areas II

4 1. Introduction 1. Introduction 1.1 Problems and objectives The business models of the so-called sharing economy are an important trend that is related to increasing digitization in several areas of the economy. 1 In the literature, the concept of sharing business models is understood as a development, whereby the consumer is no longer the owner of certain economic goods, but these are only left to him through previously agreed terms of use. 2 The core of the development of the sharing business models is represented by online brokerage platforms. These are used to convey temporary usage rights and thus enable the common, often simultaneous, use of goods or services. 3 What all sharing business models have in common is that assets are only paid for when they are actually used. 4 In addition, sharing goods not only saves costs but also reduces the production of goods. This saves raw materials and reduces environmental pollution. 5 The basic principle of sharing and using existing resources is not a new phenomenon. 6 The concept of sharing business models can often be found in practice. Well-known examples are libraries, laundromats or video stores. 7 In recent years, the so-called economy of sharing has been promoted by social networks and online mediation platforms and the associated greater range of goods and services offered and in demand. 8 Newer forms can be found in the area of ​​mobility by sharing means of transport (e.g. Car2go and DriveNow) and in the area of ​​accommodation by sharing private apartments (e.g. Couchsurfing and Airbnb). 1 See Monopolkommission (Ed.) (2016a), S See Brühl, V. (2015), S See Monopolkommission (Ed.) (2016a), S See Brühl, V. (2015), S See Brühl , V. (2015), S Cf. Kagermeier, J. et al. (2016), p. 2 7 Cf. Haese, M. (2015), p. 2 8 Cf. Kagermeier, J. et al. (2016), p. 2 1

5 1. Introduction The online accommodation platform Airbnb has gained popularity around the world in recent years. 9 Airbnb was founded as a so-called start-up in Silicon Valley in 2008 and, for a fee, arranges the rental of accommodation for private individuals around the world. 10 The company arranges private accommodation for travelers in 191 countries and in more than cities. 11 The number of advertisements on Airbnb increased from 2011 to over two million in 2016. 12 The number of Airbnb accommodations across Germany was in 2015, of which Berlin was located in Germany's capital and tourist attraction. 13 In contrast to traditional hotel and travel providers, Airbnb not only offers travelers cheaper accommodation, but also an authentic holiday experience far away from tourist centers. 14 critics assume that the Airbnb sharing business model leads to a shortage of living space and to disturbances caused by tourists. Furthermore, they fear the spread of legally prohibited commercial use of the living space. In this context, a legal ban on misappropriation has already been issued in Berlin, according to which the rental of private apartments is criminally prohibited under certain conditions. 15 The Federal Minister of Economics, Sigmar Gabriel, is already in favor of increased regulation of booking portals such as Airbnb, since many sharing business models not only ignore insurance and liability issues, but their users often forego the proper taxation of their rental income. 16 Is Airbnb's sharing business model already reaching its limits here due to legal regulations? How does Airbnb react to the legal restrictions and how can the business model still be used sensibly from an economic point of view and, if necessary, expanded? 9 Cf. Conrady, R. (2015), S Cf. Kagermeier, J. et al. (2016), S see Airbnb (ed.) (2017a) 12 see Statista Dossier (2016), S see Statista Dossier (2016), S see Kagermeier, J. et al. (2016), S cf. Spiegel Online (ed.) (2016a) 16 cf. Berliner Morgenpost (ed.) (2016a) 2

6 1. Introduction The present work deals with the discussion of the private brokerage of apartments from a business point of view and aims to find an answer to the question of the extent to which the online brokerage platform Airbnb can be viewed as a viable sharing business model on the German market. 1.2 Structure of the thesis In order to find an answer to the question posed above, Chapter 2 first gives an overview of the theory of business models. The concept of the business model is defined, the business model canvas is presented in more detail and a theoretical insight into the corporate environment is given. Chapter 3 takes a closer look at sharing business models. In addition to a definition of the sharing economy, the development of this and the goals are explained. Using several examples illustrates the different areas of application of sharing business models. In Chapter 4, the theoretical basics are then transferred to business practice using the Airbnb business model. In order to examine the viability of the Airbnb business model, the company is first presented. Then the influences of the macro and micro environment on the company are examined. A company analysis is carried out for this purpose. Chapter 5 uses a SWOT analysis to analyze the strengths, weaknesses, opportunities and threats of Airbnb on the German market. Chapter 6 summarizes the results of the investigation and provides an answer to the questions posed in the introduction. Open questions should also be mentioned and an outlook on possible developments in the field of the sharing economy should be given. 3

7 2. Theory of business models 2. Theory of business models The following chapter gives a theoretical insight into business models. For this purpose, the concept of the business model is defined, the business model canvas is presented as a concept for building a business model and an overview of the strategic analysis methods for understanding the environment of business models is given. 2.1 Introduction to business models In the literature, a large number of different definitions can be found for the term business model, although a universal definition of the term is still pending due to the complexity of the model. 17 Establishing a uniform definition is made more difficult by the fact that terms such as operating model, process model or delivery model are used with the same meaning. 18 Initially, the term business model was used in business informatics and stood for the description of the results of business modeling and the presentation of evaluation systems. The concept of the business model emerged from the creation and modeling of information. 19 According to Wirtz, a more common use of the term can be traced back to the spread and establishment of the Internet and the associated growth in electronic commerce. With the rise of the Internet, there was an increasing entrepreneurial and media interest in the concept of the business model. In particular, the New Economy between 1998 and 2001 and the associated use of modern information and communication technologies influenced the explanation of the term through its use in a strategic context. 20 The concept of the business model has moreover developed from three basic theoretical approaches (information technology, strategy and organizational theory) into a management concept that is closely related to 17 Cf. Wirtz, B. (2013), S Cf. Roland, E. (2014), S cf. Ahrend, K. (2016), S cf. Wirtz, B. (2013), p

8 2. Theory of business models is linked to corporate strategy. 21 Wirtz defines the concept of the business model or the business model as follows: A business model represents a greatly simplified and aggregated representation of the relevant activities of a company. It explains how marketable information, products and / or services are created through the value-added component of a company arise. In addition to the architecture of the value creation, the strategic as well as the customer and market components are taken into account in order to achieve the overriding goal of generating or securing the competitive advantage. 22 According to Osterwalder and Pigneur, another definition of the term business model is as follows: A business model describes the basic principle according to which an organization creates, communicates and records values. 23 According to Osterwalder and Pigneur, the business model deals with all corporate activities that are required to achieve competitive positioning and value creation. The corporate strategy is part of the business model. 24 The Business Model Canvas is a method for representing the most important key factors of a business model and acts like a blueprint. 25 Osterwalder and Pigneur describe this blueprint using nine building blocks. The nine building blocks show which logic a company can use to generate profit. 21 Cf. Wirtz, B. (2013), S Wirtz, B. (2013), S Osterwalder, A. / Pigneur, Y. (2011), S Cf. Ahrend, K. (2016), S Cf. Federal Ministry for Economy and Energy (Ed.) (Na) 5

9 2. Theory of business models The concept developers are primarily concerned with making business models tangible and being able to present them in a simplified form. In addition, the model should be able to depict a simulation of future developments in a company in different variants. 26 In the following chapter the business model canvas is presented in more detail. 2.2 The Business Model Canvas The Business Model Canvas is a concept template for business models that is made up of nine building blocks. These include: customer segment, value offerings, channels, customer relationships, revenue streams, key resources, key activities, key partnerships and cost structure. These nine components cover the four most important areas of a company: customers, offers, infrastructures and financial strategies. The business model canvas can be presented as follows: 2. Key activities 5. Customer relationships 1. Key partnerships 4. Value proposition 7. Customer segments 3. Key resources 6. Channels 8. Cost structure 9. Sources of income Figure 1 - Business model canvas Osterwalder, A. / Pigneur, Y . (2011), S Own illustration based on: Osterwalder, A. / Pigneur, Y. (2011), p. 48 6

10 2. Theory of business models 1.) Customer segments: This module defines which groups of potential customers the company would like to reach and satisfy with its business model. 28 The customer segment should make a decision about who the company should offer a benefit to and which people are the most significant. 29 For this purpose, the groups of people are divided into different segments with common behaviors, needs and characteristics. 30 The customer segments can be divided into mass and niche markets, for example, or into a single segment that serves the individual needs of a specific customer group. Another type of customer segmentation can be diversified segmentation. The business model pursues two independent customer segments with different needs and demands. In contrast, a so-called multi-sided platform represents a segmentation in which two interdependent segments are served to customers) Value offers: The value offers include all product and service packages that the company offers and assigns to the customer segments on the basis of their respective customer needs. 32 These can, for example, be conveyed to the customer quantitatively in the form of prices and services, qualitatively through adjustments to customer requirements and adjustments to user-friendliness as well as through cost and risk reductions, design or availability) To direct a company, this module describes the most cost-effective and functional types of communication between the company and the customer. A choice is made between direct and indirect channel types or their own and 28 Cf. Osterwalder, A. / Pigneur, Y. (2011), S Cf. Haese, M. (2015), S Cf. Osterwalder, A. / Pigneur, Y. (2011), S cf. Osterwalder, A. / Pigneur, Y. (2011), S cf. Haese, M. (2015), S cf. Osterwalder, A. / Pigneur, Y. (2011), p 27 7

11 2. Theory of business models. Partner channel types were selected and an optimal mix between the types was selected. 34 Examples of different channel types can be: Own channels - direct Own channels - indirect partner channels - indirect Channel types Sales department, Internet sales Own branches Partner branches, wholesalers Figure 2 - Channel types 35 4.) Customer relationships: The component of customer relationships describes the design of the customer relationship. If customer communication is personal, this can be done individually by customer advisors or generally through communities. 36 Communication can be less personal through digital, automated service providers or require self-service from customers. 37 The channels are important contact points for customers and fulfill different functions. These are divided into: The phase of attention, customer evaluation, the purchase of products or services, mediation and support after the purchase) Sources of income: The component of the source of income deals with the question of the current and future payment method in which the respective customer segment willing to pay for an offer of value. The company can draw income from various options. Income can result from traditional sales, from use for a fee through rental, rental or leasing, license or brokerage fees or fees for advertising a certain product or service. When it comes to pricing, a distinction is made between fixed and variable prices. Fixed prices are previously set prices, which are based on 34 Cf. Osterwalder, A. / Pigneur, Y. (2011), S Own illustration based on: Osterwalder, A. / Pigneur, Y. (2011), S Cf. Osterwalder, A ./ Pigneur, Y. (2011), S cf. Osterwalder, A. / Pigneur, Y. (2011), S cf. Haese, M. (2015), p

12 2. Theory of business models are based on statistical variables (depending on production characteristics, type of customer segment, purchased quantity). The variable prices are prices that change due to market conditions (negotiations, auctions, revenue management)) Key resources: The component of the key resources comprises all assets that are important for fulfilling the company's value proposition. The resource types of a business model can be categorized into: means of production (e.g. buildings and machines), company knowledge, patents and customer master data as well as human (labor) and financial resources (e.g. stock options and credit lines)) Key activities: The key activities include all necessary activities of a Companies that are necessary for the successful implementation of value propositions. They are accordingly dependent on the respective company and the type of business model.Depending on the company, the key activities of a business model can relate to the production and manufacture of goods, the development of problem solutions (e.g. within a consulting company) or the form of brokerage platforms and networks) Key partnerships: This module describes the strategic network to partners and suppliers of the Company. For example, Distinguished between partnerships with competitors and non-competitors or joint ventures (joint ventures) for developing new businesses. Partnerships can result in advantages in the form of increased performance, cost savings as well as the reduction of risks and access to additional resources Cf. Osterwalder, A. / Pigneur, Y. (2011), S Cf. Osterwalder, A. / Pigneur, Y. ( 2011), S cf. Osterwalder, A. / Pigneur, Y. (2011), S cf. Haese, M. (2015), p

13 2. Theory of business models 9.) Cost structure: The component of the cost structure identifies all expenses incurred within the company or caused by the other components. The respective cost intensity of the cost center is also revealed. 43 A distinction is made here between the cost-oriented and the value-oriented business model. The cost-oriented business model aims for the lowest possible cost structure through outsourcing and optimal automation, for example. Important factors are the fixed and variable costs as well as the potential for cost savings through economies of scale and scope. The value-oriented business model, on the other hand, is geared towards personal and exclusive products and services. The environment of the business model Business models are designed in relation to the environment and are implemented within it. A detailed understanding of the corporate environment is a basic requirement for a successful, sustainable and more competitive business model in the context of strategic management. 45 The strategic management of a company specifies the direction of corporate development and makes decisions about the long-term success of a company. 46 The focus on the market and the safeguarding and use of one's own resources are of essential importance for the sustainability and success of a company. All decisions that determine the behavior of a company externally and internally in the long term are referred to as corporate policy. Company policy aims to secure the existence of a company. A company can only survive on the market if it is economically successful, achieves above-average results compared to its competitors and is accepted by the social and economic environment (customers, suppliers, financiers, state). Core component for the objective of the 43 cf. Haese, M. (2015), S cf. Osterwalder, A. / Pigneur, Y. (2011), S cf. Osterwalder, A. / Pigneur, Y. (2011), S cf. Sinzig, C. (2017), p

14 2. Theory of business models in strategic management is strategic planning. The areas of responsibility of strategic planning are the internal company and external environmental analysis as well as further strategic options and programs. 47 The information of the internal company analysis, which relates to conscientious facts and a selection of relevant data, represents the current status of the company. 48 The external environmental analysis, on the other hand, deals with the assessment of the future development of the company environment and with the assessment of the extent to which these can be relevant to the sustainability of the company. 49 In the external corporate environment, a distinction is also made between the micro-environment and the macro-environment. The macro environment deals with the global corporate environment, i.e. with the economic, political-legal, socio-cultural and technical conditions and future trends in the business environment. The micro-environment, on the other hand, as a competitive environment, deals with the analysis of market forces as well as the company and company competition. 50 The embedding of the company in the micro and macro environment can be shown as follows: Macro environment Economic Socio-cultural Micro environment Company Technology Political Figure 3 - Company environment Cf. Thommen, J. et al. (2017), S cf. Thommen, J. et al. (2017), S cf. Sinzig, C. (2017), S cf. Sinzig, C. (2017), S Own illustration based on: Sinzig, C. (2017), p

15 3. The sharing business model The external corporate environment is an important determinant of the success or failure of a company due to the constant change in the conditions of the micro and macro environment. The planning of corporate strategies is based on the strengths and weaknesses of the internal company analysis as well as the opportunities and risks of external environmental analysis. The strategic analyzes form the informational basis for the strategy developments. The so-called SWOT analysis (Strenghts, Weaknesses, Opportunities, Threats) enables a comparison of the strengths and weaknesses of the internal company analysis with the opportunities and dangers of the external environmental analysis. The aim is to relate the internal and external factors to one another, to identify strategic gaps and to examine options for developing strategies. 52 In this chapter, the theory of business models was presented and a concept for creating a business model was presented using the Business Model Canvas. The representation of the environment of the business model has made it clear which factors can affect a business model. In the following chapter, the sharing business models of the so-called sharing economy are presented. 3. The sharing business model This chapter examines the sharing business model in more detail. First, a definition of the sharing business model is given and the development of this is presented. Moving on, possible motives for sharing are identified from the perspective of different users and the various main areas of the sharing economy are presented. 52 Cf. Sinzig, C. (2017), p

16 3. The sharing business model 3.1 Definition of the sharing business model The terms of the sharing economy or the sharing economy stand for the "[] common use of goods by sharing, swapping, lending, renting or giving as well as the brokering of services. 53 The business models of the sharing economy that emerged a few years ago are summarized under the term sharing business models and provide for the sharing of goods for communal consumption and resource conservation.54 With this new trend, the goal of the consumer is no longer to acquire property of goods and services, but only access to them.55 The basis of the sharing economy is formed by the activities that lead to better utilization of existing capacities.56 The sharing economy comprises a large number of different business models Ownership, costs and the act categorized ivities of sharing goods, services and knowledge. With free sharing, the company acts as an intermediary between the goods offered and goods in demand. In the case of chargeable sharing, financial consideration is taken for renting goods that are owned by companies or private individuals. Companies in the sharing economy either provide goods and services for use themselves or act as an intermediary between customer and supplier. As an intermediary, they coordinate the bringing together of providers and buyers of a specific resource (matching) Haese, M. (2015), S cf. Eichhorst, W. / Spermann A. (2015), S cf. Werner, K. ( 2014) 56 Cf. Theurl, T. et al. (2015) 57 See Scholl, G. et al. (2015), p

17 3. The sharing business model Intermediate Provider Demander Figure 4 - Intermediary 58 Intermediaries can be geared towards different interests. The Internet platform Airbnb, for example, is a commercial brokerage service and is financed through brokerage commissions. In Chapter 4, the Airbnb example is discussed in more detail. The agency service Fairvermietung offers consumer goods for sharing locally and, unlike Airbnb, is not financed by commissions, but by donations. 59 In contrast to renting, when goods are shared, some of them are used collectively. Sharing business models therefore stand for the collaborative consumption of goods and services. 60 A large number of different definitions of sharing business models can be found in the specialist literature. 61 Usually, however, a distinction is made between exchanges between private individuals (Peer-to-Peer, abbreviated to P2P), exchanges between companies and private individuals (Eng. Business-to-business, abbreviated to B2B). 62 The term peer-to-peer originally came about through music exchange platforms on the Internet. The term stood for the idea of ​​making resources such as information, data or bandwidths accessible in a community of equals (peers) without the need for coordination bodies for the exchange.Cf.PeerSharing (Ed.) (2016c), S Cf. Scholl , G. et al. (2015), S cf. Bucher, E. / Fieseler, C. (2015), S cf. Werner, K. (2014), S cf. Scholl, G. et al. (2015), S cf. Schoeder, D. et al. (2002), p. 3 14

18 3. The sharing business model In this thesis the focus is on the peer-to-peer sharing models, which are an innovation of the sharing economy, as they are different from the business-to-consumer and business-to-business models act in markets where no exchange has taken place so far. 64 The specialty here is that instead of companies and communities, more and more private individuals are offering their private goods. In this form of peer-to-peer sharing, companies only act as intermediaries. 65 Scholl (et al.) Defines the term peer-to-peer sharing as follows: Sharing is about sharing everyday things with other people. Cars, clothing, apartments, products and services are lent, shared, bartered and sold from one person to another. Often online platforms mediate between suppliers and buyers. They make sharing among strangers possible. We call this form of sharing peer-to-peer sharing. Historical development The idea of ​​sharing is not new and can be found in various forms in the past. The sharing of goods is practiced in numerous examples such as libraries, video stores, laundromats, public swimming pools or car rental. Up to now, however, sharing has been comparatively cumbersome for many customers and the offers only had a limited range. 67 From an economic point of view, sharing business models became widespread from around 2010, which is largely due to new technical possibilities and in particular the Internet with online platforms and applications on mobile devices (abbreviated to apps). 68 In the economy of sharing, this has led to increasing growth rates and a significant reduction in transaction costs. 69 The digital internet structures are used for the exchange of information and communication. In addition, the wide range of options offered by social networks, such as Facebook, and 64 See Scholl, G. et al. (2015), S cf. Haese, M. (2015), S Bröse, I. et al. (2016), S cf. Haese, M. (2015), S cf. Werner, K. (2014), p. 8; Spindler, H. et al. (2015), S cf. Werner, K. (2014), p. 8 15

19 3. The sharing business model, the relatively simple exchange of user offers associated with it, and faster sharing has become possible. 70 As the central motifs of the new trend sharing economy, under the motto using instead of owning, the focus is not only on using other people's goods, but also on conserving resources, establishing social contacts and solidarity. 71 The online brokerage platforms have created a faster and easier way of finding a suitable partner to exchange goods. 72 The rapid increase in sharing business models is not only due to the new technological possibilities, but also to a change in values ​​in society. The change from ownership to a temporary use of goods reduces investment, storage and depreciation costs. The sharing business models are growing steadily, especially in areas with a shortage of living space and few opportunities to park vehicles. 73 The new trend towards sharing can also be traced back to the US financial crisis in 2007, which forced many people to increasingly look for additional sources of income. By making their private property available to third parties for a fee, they were able to generate income. The growth in internet-based platforms is increasingly being discussed as a new business model in politics, science, research and in many companies. 74 Commercial intermediary platforms in the tourism and transport sector are often the focus of these discussions. The sharing economy, which was initially viewed very positively, is now also often criticized, as the free help and the rental of goods, e.g. in the form of neighborhood help, has now become a paid service. 75 The growth of the digital business models of the sharing economy is partly at the expense of the representatives of the classic business models Cf. Spindler, H. et al. (2015), S cf. Leismann, K. et al. (2012), S cf. Bucher, E. / Fieseler, C. (2015), S cf. Bucher, E. / Fieseler, C. (2015), S cf. Leismann, K. et al. (2012), S cf. Haese, M. (2015), S cf. Eichhorst, W. / Spermann A. (2015), p. 8 16

20 3. The sharing business model Classical business models, such as the hotel or taxi industry, criticize the sharing business models because of unnecessary requirements in the form of hygiene, safety or fire protection regulations and demand a level playing field Motives for sharing The wide range of users of digital sharing -Platforms offers corresponding offers to different user groups, depending on the motive for sharing. The motives range from personal enjoyment of sharing to the interest in passing on help to other people to the simple pleasure of doing business. It can therefore be assumed that companies should coordinate their offers according to the individual motives of the user profiles in order to be able to operate competitively in the sharing economy. 78 Corresponding to the user profile, companies can create incentives and thus promote sharing. 79 The following describes four different types of users who each share their property for a different reason. The data basis is a comprehensive study that has dealt more closely with the user types and the interests of the users. 80 A division is made into the following user types: the hedonists, the micro-entrepreneurs, the Samaritans and the additional earners. a) Hedonists: With 44 percent, the hedonistic type is the largest group of participants in sharing platforms. Despite a slight interest in monetary compensation, instead of profit-oriented and material motives, fun-oriented, exciting and stimulating interests are pursued. This type is looking for new adventures and at the same time the most sociable type Cf. Haese, M. (2015), S Cf. Bucher, E. / Fieseler, C. (2015), S Cf. Bucher, E. / Fieseler, C. (2015), S cf. Bucher, E. / Fieseler, C. (2015), S cf. Bucher, E. / Fieseler, C. (2015), p

21 3. The sharing business model b) Micro-entrepreneurs: With a share of 34 percent, micro-entrepreneurs form the second largest group of users of sharing platforms. For this type, it is of great importance to have a profitable investment. In addition to profit orientation, the focus of his efforts is the efficient and sustainable use of his own resources. The micro-entrepreneur therefore mainly shares his goods on commercial sharing platforms. 82 c) Samaritans: The Samaritans' motive for sharing is largely attributed to moral influences. Among all four types of users, the Samaritan is the one who is least interested in increasing profits from sharing goods. He sees his motivation above all in being able to help others and to make friendly contacts. The Samaritans usually use non-commercial sharing platforms. 83 An example of such a sharing platform is couch surfing. d) Additional earners: With a share of 8 percent, additional earners, as the most materialistic types, form the smallest group. The additional earners are mainly driven by monetary motives. In the context of the survey, these user types represented the lowest-income participants. They see sharing as an additional form of income as a means to achieve a certain level of consumption or to maintain their level of consumption. Cf. Bucher, E. / Fieseler, C. (2015) , S cf. Bucher, E. / Fieseler, C. (2015), S cf. Bucher, E. / Fieseler, C. (2015), p

22 3. The sharing business model 3.4 Forms of sharing business models Sharing in the sharing economy is divided into two forms of use of goods: extending the useful life with transfer of ownership and intensifying use without transferring ownership.Within these forms, in turn, a distinction can be made between monetary and unpaid use. 85 Extension of the useful life (transfer of ownership) Intensification of use (no transfer of ownership) Monetary free of charge Monetary free of charge Reselling Exchange Renting Lending Ebay Freecycle Airbnb Fair lending Clothes roundabout Exchange ticket Parkinglist SharedEarth Give away Co-Using Foodsharing Couchsurfing Givebox Flinc Figure 5 - Sharing practices 86, On the sharing practices that extend the useful life of a good and demand monetary consideration includes the resale of goods that have already been used. One of the free practices is exchange, in which a good is exchanged for a good, a service for a service, or a good for a service. Giving away is also a free practice, whereby a good is permanently given to a third party. Cf. Scholl, G. et al. (2015), S Own illustration based on: Scholl, G. et al. (2015), S cf. Scholl, G. et al. (2015), p

23 3. The sharing business model One of the sharing practices that intensify the use of a good and demand monetary consideration is renting out, whereby a good is given to a third party for a limited period of time. If a good is given to a third party free of charge for a limited period of time, this counts as loan. The co-using can take place free of charge as well as against payment. A good is used simultaneously and jointly. 88 There are currently 102 peer-to-peer sharing providers on the German market. 89 The following diagram shows the percentage share of the respective forms of use on the German market in 2016. Sharing practices in Germany in 2016 Co-Using Letting Exchanging 9% 8% 30% Reselling Lending 13% Giving away 16% 24% Figure 6 - Distribution of sharing practices 90 The diagram shows that almost a third of all providers in the German market offer the brokerage of goods for simultaneous and shared use (co-using). In second place is the sharing practice of renting cf. Scholl, G. et al. (2015), S See PeerSharing (Ed.) (2016b), S Own illustration based on: PeerSharing (Ed.) (2016b), S See PeerSharing (Ed.) (2016b), p. 2 20

24 3. The sharing business model In addition to the differentiating features of the sharing practices, the different providers of the sharing economy can also be subdivided according to the degree of commercialization and formalization, the social and ecological orientation and the degree of dissemination. The degree of commercialization of a sharing provider can be determined on the basis of the profit-making intent (e.g. profit company or non-profit company) and on whether the provider charges agency fees or the like. There is a high degree of commercialization when the provider is profit-oriented and monetary transaction costs are retained. An example of this is Airbnb's sharing business model. One example of a sharing model with a low degree of commercialization is the food sharing platform. Transactions and the brokerage of products take place without any monetary consideration. The degree of formalization can range from a low degree, as in the case of registered associations (e.g. food sharing), to a very high degree, e.g. in the case of the corporation Mitfahrzentrale or the mobile network Flinc, are sufficient. Another distinguishing feature of the various providers of the sharing economy is the degree of community. Couchsurfing, for example, has a high degree of community. The company provides free accommodation in a community and thus promotes a social and cultural exchange and thus corresponds to the original basic principle of the sharing economy. In contrast, Airbnb has a low level of community, as the company does not pursue any social goals despite having a community of users. 92 Another important differentiating factor is the degree of penetration of a company. A high degree of diffusion exists when the sharing practice is established in society and the largest part of the user potential is exhausted. Indicators for determining the degree of penetration are, for example, the spatial availability, the number of users or the number of transactions. Cf. Scholl, G. et al. (2015), S cf. Scholl, G. et al. (2015), p

25 3. The sharing business model 3.5 Main areas of the sharing business models The sharing business models can mainly be found in six economic sectors: 1. Mobility, 2. Accommodation, 3. Objects of use, 4. Media and entertainment, 5. Clothing and 6. Nutrition . 94 In the following, examples of sharing platforms are presented for the respective economic sectors. 1. Mobility: Platform sharing practice Founding Origin Function Uber Co-Using 2009 USA Ampido Vermieten 2012 DE Mediation of passenger transport Rent / rental of parking spaces Figure 7 - Mobility 95 Uber was founded in 2009 and is a platform for the mediation of passengers to private customers Truck drivers. Passengers can inquire about arranging vehicle transport using the Uber app or the Uber website. 96 The Uber app shows the passenger the waiting time for the driver, the duration of the journey and the fare after entering his transport request. The passengers pay the fare directly to the driver using the credit card stored in the Uber payment system. 97 Uber claims a brokerage fee of 20% of the corresponding fare and withholds this directly as part of the transaction. 98 Uber's business model, similar to that of a taxi company, provides for the transport of passengers from location A to location B. Uber's key resource is the digital sharing platform on which each other 94 Cf. Scholl, G. et al. (2015), S Own illustration based on: PeerSharing (Hrsg.) (2016a), p. 1, S Cf. Uber (Hrsg.) (2017a) 97 Cf. Uber (Hrsg.) (2017b) 98 Cf. Rest , J. (2014), p. 1 22

26 3. The sharing business model independent private drivers and passengers arrange a trip. The business relationship (i.e. car type, price, payment method and rating) is determined in advance via Uber. Uber therefore did not need its own drivers or its own fleet of vehicles to establish the business model. This requirement was decisive for the rapid and aggressive expansion of the business model. 99 In 2015, however, the Frankfurt Regional Court declared Uber to be inadmissible in Germany following the action brought by the taxi industry due to unfair competition. The court ruled that Uber's business model violated the Passenger Transportation Act. The court saw the reason for this in the fact that the drivers do not have a passenger transport license, thus gaining a competitive advantage and also posing a safety risk. 100 Despite an appeal in 2016, the Frankfurt Higher Regional Court ruled that Uber remains banned in Germany and is only permitted for using regular taxi rides. Uber is also planning to appeal the new court ruling by only working with drivers who are licensed to transport people in the future. 101 The Ampido platform is used to broker unused private parking spaces. For example, private parking spaces or garage entrances can be rented to third parties if the owners do not use them. Availability and parking fees are determined by the owner and published on the Ampido website. 102 On average, parking costs EUR 1 per hour. The aim of the company founder is to be able to offer parking spaces around 50% cheaper than public parking spaces. 103 In addition, the business idea is intended to provide the owners of the parking area with an additional income opportunity and also to protect the environment by using many free parking areas to encourage traffic to search for a parking space 99 Cf. Kofler, O. / Winner, J. (2016 ) 100 See Spiegel Online (Ed.) (2015) 101 See Seibt, P. (2016) 102 See Ampido (Ed.) (2017) 103 See Hock, M. (2016) 23

27 3. The sharing business model is decreasing. 104 At the moment, however, the number of registered parking spaces on offer does not seem to customers enough Accommodation: Platform sharing practice Founding Origin Function Couchsurfing Co-Using 2004 USA Brokerage of free sleeping spaces 9flats Vermieten 2010 DE Renting / renting holiday apartments, rooms, etc. 106 Couchsurfing was founded in 2004 and offers travelers a community network as a platform on the Internet. Couchsurfing describes itself as a hospitality network. 107 Within this community, the platform provides travelers with free accommodation options and the opportunity to get in touch with other travelers, to exchange ideas and to meet. 108 The idea here is to offer another member of the family free accommodation at a later date by offering their own sofa or guest bed. In addition to arranging sleeping places, the platform also functions as an exchange for making social contacts or for offering and using private tour guides. New investors in 2011 transformed the platform from a non-profit association into a commercial company. Couchsurfing was an idealistic exchange platform before the change in legal form and has established itself as a 104 cf. Ampido (ed.) (2017) 105 cf. Krüger, A. (2016) 106 own illustration based on: PeerSharing (ed.) (2016a ), S cf. Rodemann, J. (2016), S cf. Couchsurfing (Ed.) (2017) 24

28 3. The sharing business model Countermovement to the commercial tourism industry seen. 109 In the media, the security risks due to the anonymity of the members and the poor handling of user data are always criticized. Couchsurfing also requires a relatively high membership fee. Nevertheless, Couchsurfing can be a very good offer for travelers who do not place high demands on the comfort of accommodation and who travel on a budget, thanks to free accommodation and the opportunity to receive local tourist tips. 110 The German platform 9flats serves as an intermediary between private individuals who rent accommodation or who want to rent out their own accommodation. The platform offers a selection of private accommodations worldwide and can be seen as a kind of low-cost alternative to traditional hotels. The accommodations range from individual rooms to luxury apartments. 111 The company currently offers apartments in Germany. However, the ban on misappropriation basically prohibits the renting of so-called holiday apartments in Berlin and therefore has a negative effect on the business model of 9flats from everyday objects: Platform sharing practice Founding origin Function LeihDirWas Vermieten 2010 DE Renting / renting out everyday objects Wir.de lending / swapping 2012 DE Exchange / lending / lending of goods and services Figure 9 - Utilities sector Cf. Rodemann, J. (2016) 110 Cf. Rodemann, J. (2016) 111 Cf. 9flats (Hrsg.) (2017) 112 Cf. Scherkamp, ​​H . (2016) 113 Own illustration based on: PeerSharing (Ed.) (2016a), p. 5, p

29 3. The sharing business model LeihDirWas was founded in Germany in 2010 and enables the lending of goods between private individuals via an internet platform. A wide variety of objects, such as Household appliances, electronic devices, sports equipment or tools can on average be rented more cheaply in Germany than through traditional rentals. 114 The prices are set by the landlord. The platform is financed through an agency fee of five percent per transaction carried out. 115 Wir.de is an Internet platform that acts as a kind of neighborhood community for private individuals, providing neighborhood help or buying, lending, swapping and giving away goods in the immediate vicinity. The business idea of ​​Wir.de is geared towards the common use and exchange of goods among neighbors. The business model should lead to new acquaintances and strengthen neighborhood cohesion. In addition, the platform should help to save time and protect the environment due to the short distances between supplier and customer for the exchange of a good Media / entertainment: Platform sharing practice Founding Origin Function Youtube Exchange / Share 2005 USA Free sharing of videos Wikipedia Share 2001 USA Free Online lexicon Figure 10 - Media / entertainment area Cf. Leihdirwas.de (Ed.) (2017) 115 Cf. Bracht, T. (2011), S Cf. Wir.de (Ed.) (2017) 117 Own categorization based on Company profiles 26