Edison Chamba Ortiz

Integrating Sharing Economy Business Models in Automotive Companies: Strategies for Enhancing Corporate Sustainability.

Edison's project explores integrating Sharing Economy Business models in automotive companies and the strategies for enhancing corporate sustainability. 

While the 20^th century represented the era of individual car ownership, the 21^st century seems to disrupt this inherited system. The new mobility trend prioritises access over ownership, meaning that users get access to a mobility service instead of having a private vehicle. These practices are called car-sharing and carpooling. The main motivations for car-sharing include cost savings for users, reducing carbon emissions, recirculation of goods, increased utilisation of durable assets, and exchange of services. This incoming mobility system is based on an economic system known as the ‘sharing economy’.  The sharing economy has social interactions at its core, integrating activities such as renting, trading, swapping, and borrowing. According to Allied Market Research® (2023), the shared economy market size could grow from US$387.1 billion in 2022 to around US$827.1 billion by 2032. This economic model projects such growth as it offers more affordable solutions for consumers than traditional models do, also technological solutions such as digital platforms enhance accessibility to this model which often is aligned with consumers’ sustainability principles.

The automotive companies are undergoing significant transformations driven by the advent of the sharing economy and sustainability goals. The sharing mobility platforms are altering customer behaviour and challenging OEMs' traditional business models. These changes bring uncertainty for the long-term sustainability of these companies and their strength to adapt to new market dynamics. Despite the increasing sharing economy research output, there is a gap in examining its impact on the corporate sustainability of automotive companies. Current literature focuses on operational and consumer implications in the SE but ignores the broader implications for corporate sustainability, including economic viability, social responsibility, and environmental impact. This PhD project aims to fill this gap by investigating how adopting SE business models in OEMs influences their corporate sustainability.

For this purpose, a mixed methods methodology across three interconnected studies will be undertaken. (1) through a systematic literature review, the first study will assess the impact of sharing economy business models on the enhancement of corporate sustainability, (2) the second study will employ structured interviews with OEMs' decision-makers at the corporate level and document analysis of the selected OEMs' annual reports to identify operational and strategic adjustments for the implementation of sharing economy business models. Finally, (3) the third study will evaluate the economic benefits and challenges associated with integrating the sharing economy business models through undertaking financial analysis, surveys and structured interviews.