Business model diversification in the sharing economy: The case of GoMore

Abstract

This paper improves our understanding of the rise of the sharing economy by shedding light on the current trend in the mobility sector for new firms to operate different business models simultaneously. A shared mobility platform is used as a case study to examine the underexplored process of diversification into a business model portfolio, and test the theoretical proposition that successful business model configurations maximize the existing resources of a firm to establish hard-to-imitate capabilities and create sustainable competitive advantage. Data collection was conducted through interviews with key informants from the platform management team and a document analysis. The analysis shows the evolution, diversification, and expansion of the sharing economy startup from a non-profit ridesharing website to a for-profit matchmaking platform offering peer-to-peer (P2P) mobility solutions (ridesharing and short-term car rental) alongside business-to-consumer (B2C) access-based services (long-term leasing). The analysis suggests that each new service subsequently offered by the case firm aimed to increase the supply of peer providers in its existing P2P business models. The business model portfolio relies on six key resources (member community, platform technology, user data, customer support, local management teams, and partners) and three key capabilities (leverage of the community’s assets, technological improvement, and user engagement), which are shared and redeployed across business models and geographic locations to improve matchmaking quality, enable growth, and increase profits.