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Effective Mechanisms to Support the Competitiveness of Startup in the Sharing Economy

The strength of firms in the sharing economy is that they use resources without owning them. However, as more firms enter the market, access to these resources becomes more difficult. In such circumstances, the focus of this paper is on start-ups and supporting their competitiveness in the market environment, and how to stay noticed and circumvent “critical mass” problems to survive. This will help to see the broad scope of this phenomenon in a new way, the benefits for startups and established companies. The authors note that startups in the collaborative consumption economy initially face the same challenges as startups in other markets. As results, provisions are highlighted to familiarize managers with the reasons for failure and success of startups, their mechanisms of competition in the market environment. Taking these provisions into account will help startups to transform their business models towards greater resilience to the risks of competition. The methodological basis of the study is the principles of objectivity and systematic scientific analysis and synthesis, based on general scientific and private scientific methods of cognition: formal-logical, structural-systemic. Based on the previous studies, the paper offers recommendations on how to maintain the value of business models of startups in the sharing economy, taking into account the fact that they face certain risks. The main conclusion of the article is that startups are currently realizing original rethinking of traditional value creation architectures through the active use of innovative trends that are not limited to the tourism, mobility and human resources sectors, thus expanding the competitive environment of the sharing economy. At the same time, succeeding in the sharing economy with your startup means building a business model based on trust, authenticity and transparency towards customers. Read more...