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Figure 1

Impact of innovative sharing economy start-ups on the city: interplay of interests of various stakeholders in the city.Source: Own elaboration.
Impact of innovative sharing economy start-ups on the city: interplay of interests of various stakeholders in the city.Source: Own elaboration.

Figure 2

Cumulative funding for asset-sharing start-ups from 2010 to 2016.Source: Wallenstein and Shelat, BCG analysis [2017], p. 5.
Cumulative funding for asset-sharing start-ups from 2010 to 2016.Source: Wallenstein and Shelat, BCG analysis [2017], p. 5.

City as an arena of contrasting interests, represented by different stakeholders

City’s stakeholdersApproach + for − againstCharacteristics of approach
Sharing economy companies+

Connect citizens: drivers–riders and landlords–guests to generate revenues (gain loyalty)

Successfully attack the market position of incumbent companies

Have low entry barriers

Gain profits from platforms: revenues from users and advertisers, selling databases, etc.

Create new jobs for contractors/employees, including people who were not previously employed

Generate additional demand

Contribute to new socialization by creation of a community

Lower transaction costs

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Face fierce competition in sharing economy sector

Face increasing resistance of incumbents and rising (governmental, municipal) restrictions on sharing services

Incumbents+

Face competitiveness, which leads to higher standard of services

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Are under disruptive impact of sharing companies with reference to revenue and profits

Question legality, price policy, and tax policy of ridesharing and lodging, because of their status as unlicensed (Uber, Blablacar) and lower-priced competitors (Uber, Blablacar, and Airbnb) using peer-to-peer low-cost service practices with low capital entry with reference to possession (Blablacar carpooling, Airbnb)

Suffer decline in standard of living due to lower wages

RESIDENTS

Save money by getting cheap access to goods and services offered by sharing companies

Users (consumers)+

Save money by getting cheaper access to traditional services being under competitive pressure

Benefiting from improved standard of living

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Become less dependent on ownership

Are exposed to risk (quality of goods and services)

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Contractors (peers)

Earn money paid for peer-to-peer jobs

+

Earn money paid for assets owned by them

Have more flexibility

Appreciate participation in communities created by users of platforms

Benefiting from improved standard of living

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Are exposed to risk of lack of payments, poor working conditions, etc.

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Nonusers+

Use tourist-driven demand to earn money

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Complain about tourists behavior in neighborhood areas

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All residents+

Favor better quality of life (environmental aspects)

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Have unequal access to sharing services operating for different segments of population (ridesharing)

Local authorities+

Sharing businesses contribute to jobs and local economic growth induced by increasing demand (total and sectorial, e.g., tourism)

Help to solve transportation problems (urban planners are provided with data, which helps design cities in a way that would reduce congestion and reduce car usage)

Offer alternative possibilities of services, such as commuting and apartment renting

Favor social inclusion (particularly for disadvantaged groups of citizens and strangers)

Shape sociocultural features desirable for entrepreneurial attitudes, such as openness and innovativeness

Contribute to the creation of sharing communities

Help to develop new functions in cites (cultural, tourist activities)

Ease environmental problems due to better use of underused assets: e.g., cars, apartments; and help to create more environmentally friendly urban environment for all citizens

Help to enhance quality of life in the city

Change possibilities of city and intercity transportation (additional alternatives, more frequent traveling, lower cost of travel)

Totally change future of urban transportation (self-driving cars, vertical-take-off-and-landing planes)

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Concern about tax losses associated with growing “black” economy are aroused

Problems in local labor market are induced (e.g., massive protests of incumbent companies threatened by the risk of decreasing revenues and even bankruptcy)

Position of traditional urban transportation (taxis, buses, trams, and trains) is threatened

Stability of local real estate markets is threatened due to increases in real estate prices

Problems of overtourism might arouse and be increased

Timeframe and expansion of the three studied companies

Uber

spread of activity from US to all regions of the world

2011 San Francisco

2018 >400 cities worldwide in >60 countries

BlaBlaCar

spread of activity between cities from France across Europe to 19 countries, as well as to Asia (India) and Latin America (Brazil, Mexico)

diversification of activities aimed at cities, with mytaxi match being an application only for urban dwellers

2017 Warsaw

2018 70 cities in 12 countries in Europe

e.g., Hamburg, Vienna, Zurich, Barcelona, Madrid

spread of activity (diversification of carpooling) between cities to daily commute through BlaBlalines: pilot launch in France

2018 Reims-Châlons-en-Champagne and Toulouse-Montauban

Airbnb

spread of activity from US to all regions of the world

2008 San Francisco

2018 >190 countries in 81,000 cities

Different scales and applications of the sharing paradigm in modern communities

ThingsServicesActivities
IndividualSwapping, bartering, giftingRidesharing, couchsharingSkill sharing
CollectiveCar clubs, tool banks, fab-labsChildcare, time banks, crowdfundingSports, clubs, open-source software
PublicLibraries, freecyclingHealth services, public transportPolitics, public space

European comparison of the number of Airbnb listings per user

City1 listing2 Listings3 Listings4 Listings5 or more listings
Paris90,97%6,73%1,16%0,36%0,77%
Nantes89,03%8,61%1,60%0,35%0,42%
Cologne88,55%8,33%1,46%0,66%0,99%
Amsterdam88,53%7,92%1,85%0,69%1,01%
Strasbourg88,53%9,01%1,27%0,47%0,72%
Toulouse87,55%9,30%1,53%0,37%1,15%
Munich87,30%9,47%1,81%0,79%0,63%
Berlin86,18%9,73%2,19%0,72%1,07%
Frankfurt86,18%10,34%1,88%0,86%0,74%
Glasgow83,50%11,97%2,45%1,09%1,00%
London80,89%12,03%3,12%1,27%2,69%
Manchester78,61%13,18%3,72%1,62%2,87%
Edinburg77,88%14,03%4,11%1,66%2,31%
Prague70,63%13,94%5,28%2,75%7,40%
Barcelona69,37%16,57%6,11%2,65%5,30%