Essays on Analysis of Business Models of AIRBNB and UBER Case Study

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The paper "Analysis of Business Models of AIRBNB and UBER" is an outstanding example of a business case study.   New trends in technology have changed the mindset of senior management and employees within an organization by influencing how they perform and undertake their activities (Jomo, Felker & Rasiah, 1999). A scenario that has led to substantial innovations and invention based on business performance, and later changing business operation to result in big revenues (Malerba & Vonortas, 2009). Technological developments have also transformed the world into a global village, mostly by the use of the internet, People have launched business platforms that anybody can access irrespective of their places (Luo, 2010).

These developments have also transformed our living standards, hence leading people to appreciate the great people who facilitated these new changes. Nevertheless, dwelling only on the positive effects in which these innovations have brought forth, will not assist us much. Hence, it is also important to understand that despite the advantages of these technological developments, there are several disadvantages attached still to the same (Mietzner & Reger, 2005). In a nutshell, this technology has facilitated the development of a new business model, where companies or rather organizations maximize the revenues as they implement measures to reduce their costs (Osterwalder, Pigneur & Clark, n.d. ).

Therefore, this paper will first analyze the utmost two business models, that is, AIRBNB and UBER, and present the model that proves the most disruptive to traditional industries. Secondly, the paper will reveal the business model that has the most potential to avoid full costs as they engage in their business operation. However, before embarking on the main objective of the paper, it will be important to introduce the paper by a brief discussion on the business model, what business model entails, and how it comes to existence. According to the research conducted, there is no precise meaning of the term business model.

Rather, scholars define this term, “ business model” by breaking the two words. A detailed discussion of the term while in combination refers to any activity that involves the seller and the buyer via the internet platform. In other explanations, it refers to the structure or rather the system that is devised by an organization to accrue revenue from the public. Overview of AIRBNB AIRBNB represents an online marketplace that allows people from different parts of this globe to connect with each other with the objective of finding solutions.

Particularly, AIRBNB presents an online platform where individuals are looking to rent their homes and people who are seeking accommodation connect with each other. AIRBNB users are the hosts, who list down their homes for rent and travelers who are constantly searching for accommodation in over 190 countries in the world. The online company, AIRBNB, was established in the year 2008 in the month of August, and it is located in San Francisco in California (Byers, Proserpio & Zervas, n.d. ). The company operates in a unique way.

People can book a room, regardless of their locations, and the house owners can reserve rooms for them. The hosts list their properties such as single rooms, apartments, a suite of rooms, moored yachts, houseboats, a castle, and so forth (McCarthy, n.d. ). The hosts list their properties for free as they indicate the price they will charge for the properties.

Each listing permits the host to promote their properties via titles; photographs entailed with captions, descriptions, and a profile of the user that allows guests to communicate with the hosts. An individual is only required to log in to their website and make a reservation for a room without even traveling to their premises (Byers et al. , n. d.). In addition, the company provides an online center where the travelers can view the conditions of the rooms, and whether the rooms meet his or her expectations.

References

Byers, J., Proserpio, D., & Zervas, G. The Rise of the Sharing Economy: Estimating the Impact of Airbnb on the Hotel Industry. SSRN Electronic Journal. http://dx.doi.org/10.2139/ssrn.2366898

Guttentag, D. (2013). Airbnb: disruptive innovation and the rise of an informal tourism accommodation sector. Current Issues In Tourism, 1-26. http://dx.doi.org/10.1080/13683500.2013.827159

Horder, J. (1965). Methods of Payment. BMJ, 1(5446), 1381-1381. http://dx.doi.org/10.1136/bmj.1.5446.1381-b

Jomo K. S., Felker, G., & Rasiah, R. (1999). Industrial technology development in Malaysia. London: Routledge.

Luo, J. (2010). Business and technology in China. Santa Barbara, Calif.: ABC-CLIO.

Malerba, F., & Vonortas, N. (2009). Innovation networks in industries. Cheltenham, UK: Edward Elgar.

McCarthy, P. Online gravity.

Mietzner, D., & Reger, G. (2005). Advantages and disadvantages of scenario approaches for strategic foresight. IJTIP, 1(2), 220. http://dx.doi.org/10.1504/ijtip.2005.006516

Osterwalder, A., Pigneur, Y., & Clark, T. Business model generation.

Sarngadharan, M., & Rajitha Kumar, S. (2007). Traditional industries of India in the globalised world. New Delhi: University of Kerala in association with New Century Publications.

Steward, J. (1967). Contemporary change in traditional societies. Urbana: University of Illinois Press.

Uber,. (2015). the history of uber. Retrieved 11 October 2015, from http://uber company

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