Reasons for Failures of Sharing Economy Businesses

The rapid growth of successful sharing economy businesses like Airbnb and Uber poses a threat to traditional value chains. However, many lesser-known sharing platforms have faced serious setbacks and ceased to operate. We have compiled a profile of failed sharing businesses so that others can learn from their mistakes. Our research identified seven common reasons for the failures and four significant differences between failed and successful sharing businesses. Our findings will help managers of aspiring sharing businesses to mitigate the risks of entering the sharing market.(1)