Business Model, Open Innovation, and Sustainability in Car Sharing Industry—Comparing Three Economies

JinHyo Joseph Yun, Xiaofei Zhao, Jinxi Wu, John C. Yi, KyungBae Park and WooYoung Jung
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JinHyo Joseph Yun: Department of Open Innovation and Business Model, Open Innovation Academy of SOItmC, and DGIST, Daegu 42988, Korea
Xiaofei Zhao: Department of Open Innovation and Business Model, Open Innovation Academy of SOItmC, and DGIST, Daegu 42988, Korea
Jinxi Wu: School of Social Sciences, Tsinghua University, Beijing 100084, China
John C. Yi: Haub School of Business, Saint Joseph’s University, Philadelphia, PA 19131, USA
KyungBae Park: Department of Business Administration, Sangji University, Wonju 26339, Korea
WooYoung Jung: Department of Open Innovation and Business Model, Open Innovation Academy of SOItmC, and DGIST, Daegu 42988, Korea

Sustainability, 2020, vol. 12, issue 5, 1-27

Abstract: This paper discusses dynamics and differences of business models in the car-sharing industry and focuses on open innovation as the trigger of diverse business models among Uber in the U.S., DiDi Chuxing in China, and KakaoT in Korea. We seek to answer the following two questions: What creates the differences in the business models of the car-sharing industry? Do the differences in open innovation motivate the diversity of business models among Uber, DiDi Chuxing, and KakaoT? We incorporated participatory observation, interviews, and semi-structured questionnaire methods in our study. We used two-step participatory observation and interview methods, hence carrying out observation and interviews two times by different researchers with Uber drivers in the U.S., DiDi-Chuxing drivers in Beijing, and KakaoT taxi drivers in Korea to confirm the interview and participatory observation results. First, business models of the car-sharing firms Uber, DiDi-Chuxing, and KakaoT are not fixed but rather are dynamically changing. Second, business models of car-sharing firms are the result of interaction with government regulations, the taxi industry, public transportation, and the automotive car industry. Third, open innovation strategies of car-sharing firms determine the contents and dynamics of car-sharing business models, such as the revenue business model, responsibility business model, and system business model upon interaction with four agencies.

Keywords: car-sharing industry; open innovation; business model; Uber; DiDi-Chexing; KakaoT (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

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