Traditional Businesses in the Sharing Economy: A guideline with the potentials and determinants

Abstract

The sharing economy emerged as an alternative way to earn and save money during the financial crisis of 2007/2008. Customers started to share their underused products with other people for a small fee. Sharing per se is not a new trend. However, through the internet and new technologies sharing received a new dimension. It is now possible to share products and services with strangers through online platforms globally. The sharing trend is projected to grow continuously over the next years. Not only the market volume is rising, but also the customers willing to use the sharing economy is increasing. The market is not only penetrated by Airbnb and Uber, but many other industries are affected by different bigger or smaller platforms. In Switzerland, the focus of sharing economy platforms lies on the following five industries: transportation, accommodation, services, goods, and financial services. Although Switzerland was a pioneer in this regard, with the car sharing company Mobility, not every company is prepared for this new competition. Projections indicate that traditional businesses will lose customer and market share. Over the last few years, traditional businesses tried to protect themselves with regulations. However, there would be other ways to keep up with the sharing economy....