Differences, Constraints and Key Elements of Providing Local Sharing Economy Services in Different-Sized Cities: A Hungarian Case

Abstract

The business models of sharing economy services can differ from each other in different-sized cities. This paper provides a deeper understanding of the implementation of locally operating services for car, bicycle and office sharing in the urban environment. Our goal is to reveal the differences between the capital city and an economically well-developed city in order to provide beneficial findings to the development of the presently operating services, or to the possible implementation of future services. Methodology of the paper applies the Business Model Canvas approach (BMC). We introduce a comparative analysis using data from the Hungarian database, which records details of all the publicly visible sharing economy services countrywide. The results show that BMC can reflect the main differences, constraints and key elements in the business models of sharing economy services. We can say that, in the case of a bike sharing service operated in the non-capital city, there is more segmentation than seen in the same service in the capital. There are significant price differences, especially in the case of long-term tickets. The number of inhabitants and private capital remain the biggest constraints in the case of car-sharing services, but there is also a possibility of implementation in the non-capital cities by applying small-scale services with a good value proposition and segmentation.

Keywords

• service-based economy
• sharing economy
• car-sharing
• bike-sharing
• shared office
• Business Model Canvas