How to Survive in the Shadow of Sharing Economy Giants: Business Model Innovation for Small and Medium-Sized Platforms

Shouheng Sun, Shengjie Dong, Qi Wu and Xuejiao Tian

SAGE Open, 2023, vol. 13, issue 3, 21582440231196800

Abstract: This study aims to explore how small and medium-sized platforms in the sharing economy can gain a competitive advantage in a market monopolized by giants. Taking China’s ride-hailing industry as an example, the k-means clustering method was employed to compare and analyze the characteristics and differences of 207 small and medium-sized platforms based on the framework of the business model canvas. An empirical typology comprising four representative successful business models of small and medium-sized ride-hailing platforms is extracted from the dimensions of key partners, value propositions, customer segmentation, and cost-revenue structure: high-end business platforms, Minibus-hailing platforms, Intercity carpool platforms, and Aggregation mode platforms. The results show that small and medium-sized platforms in the sharing economy can rely on their own characteristics and advantages to seek new potential development directions and gain development space by constructing value propositions and operating models that are different from industry giants. Specifically, it is necessary to further implement refined market identification and segmentation to continuously develop differentiated competitive advantages. In particular, more effective and open business strategies should be explored and practiced to greatly expand the network effects and business boundaries of small and medium-sized platforms, thereby significantly enhancing their competitiveness in the ride-hailing market. This study provides a new perspective on the reconstruction of market exchange in the sharing economy through the prism of small and medium-sized digital platforms and has certain important theoretical significance for supplementing and advancing existing research.

Keywords: sharing economy; small and medium-sized platform; business model; competition and cooperation; aggregation mode (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:sae:sagope:v:13:y:2023:i:3:p:21582440231196800

DOI: 10.1177/21582440231196800

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