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Learning from Failures in the Sharing Economy

Karl Tauscher, Jan Kietzmann

Abstract


Firms eager to succeed in the sharing economy are encouraged to imitate the strategies and business models of successful businesses like Airbnb and Uber. Yet they often ignore the lessons from sharing economy firms that failed with similar business models. Our analysis of several failed firms has identified common causes of failure, and the associated risks, when competing in the sharing economy. An illustrative case study shows that a hybrid business model can significantly reduce the inherent risks and can lead to sustainable growth in the sharing economy.

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ISSN 1540-1960