The On-Demand Economy

Cynthia A. Montgomery; James  Weber; Elizabeth Anne Watkins

Technical Note | HBS Case Collection | September 2015

The On-Demand Economy

by Cynthia A. Montgomery, James Weber and Elizabeth Anne Watkins

Abstract

This note describes the emerging on-demand economy, also referred to as the sharing economy. The note highlights several companies including Uber and Airbnb that exemplify this new mode of competition, a model that threatens to disrupt traditional firms. Uber provides ride services much like a traditional taxi company, but it owns no cars and employs no drivers, and instead matches independent car owners with customers looking for rides. Airbnb provides a lodging service, but owns no hotels, and instead matches home owners with extra rooms with customers looking for a place to stay. The note allows students to explore what impact such companies might have on traditional business models, what impact they might have on labor and how people work, and whether existing regulations aimed at traditional business models are adequate for the new model.

Keywords: regulation; reform; Disruption; Disruptive Innovation; Strategy; Technological Innovation; Labor; Employment; Working Conditions; Human Capital; Rights; Organizational Design; Social and Collaborative Networks; Service Industry;

Language: English

Format: Print

24 pages

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Citation:

Montgomery, Cynthia A., James Weber, and Elizabeth Anne Watkins. "The On-Demand Economy." Harvard Business School Technical Note 716-405, September 2015.

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The On-Demand Economy

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