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The purpose of this chapter is to explore the new ideas promoted by the sharing economy and to explain the novel business models operating in today’s turbulent economic environment. Sharing economy departs from the existing economic structures and focuses on ownership, by promoting flexible networking architectures and free access to sharing resources and activities. Considering Uber as a symbol of the new business dynamics, the chapter reveals some of the emerging changes and their role in shaping the new business environment. Uber comes with a new business model which is based on ownership outsourcing and the transformation of its drivers from employees into microentrepreneurs. The whole business operation is done through a powerful digital platform which provides fast connections between the managers, drivers and people using transportation services. Also, Uber introduces a price dynamics mechanism which computes the transportation costs as a function of demand and supply in that particular context and time. This system constitutes and effective core competence for achieving competitive advantage.
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- The Crazy New World of the Sharing Economy
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