Sharing economy models and sustainability: Towards a typology

Abstract

The sharing economy was initially beckoned as a facilitator of exchanges that would not compromise future needs and held great promise for those at the lower end of the socioeconomic pyramid. However, as the sharing economy expanded, questions about its sustainability emerged. This expansion manifested in two main forms: an influx of new users and providers into existing operations and the emergence of new platforms, resulting in a proliferation of sharing economy models. By categorizing these models based on their resource utilization, this paper establishes a connection between scalability and compromised sustainability, shedding light on the interplay between the two. The paper identifies seven distinct configurations in the sharing economy: co-use, re-use, repeated use, sustainable output, pooling of resources, and products and services created specifically for individual users. These configurations serve as a tool to uncover the tensions between scalability and coordination, as well as between sustainability and provision. The paper contributes to prior research by bringing attention to how the sharing economy is entangled in these tensions and by developing a typology. Understanding how these tensions can be resolved presents a highly significant practical contribution, allowing stakeholders in the sharing economy to navigate the challenges of scalability and sustainability effectively.