Best practices in peer-to-peer (P2P) platform business models for start-up company "Babyhoppers"

Abstract

The advancement of communication technology together with an unstable economic situation and social trend are reasons that make people reevaluate the relationship between possession and consumption. Collaborative consumption has become a market trend during the past few years. A growing number of an entrepreneur who recognizes a business opportunity in technology-enable peer-to-peer marketplace for asset rental and service providing. The purpose of this paper is to explore definition and characteristics of the two-sided market and related elements of business aspect of platform management. After that, business model of successful peer-to-peer companies by using Osterwalder's e-business model as an analytical framework to uncover critical success factors. Osterwalder (2004)'s e-business ontology was chosen as a backbone of analysis due to its comprehensiveness of the model in addressing different elements of an e-business model; product innovation, customer relationship, infrastructure management, and financial aspect. Through multiple case studies, this paper aims to provide consulting service for start-up company "BABYHOPPERS" by suggesting best practice to grow and survive in this industry. After discovering critical success factors of being a successful company in this industry, BABYHOPPERS are advised with new formulated business model to improve its operation, as well as long-term grow in the market. However, BABYHOPPERS's manager is encouraged to consider more on some practice that the company should improve for more efficient business operation.