Classroom Companion: Business

 
Chapter 19 · Digital Business Models

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19
 Case Study 19.5 Airbnb
Airbnb is an example of an organization 
using the multisided platform business 
model (see 
7
Chap. 
10
). Airbnb offers a 
website and a mobile app in which peo-
ple may lease or rent houses, apartments, 
or single rooms for shorter or longer 
stays. They have also recently entered 
other businesses such as restaurant 
booking, concert booking, and videos 
promoting different places around the 
world. Hosts announce the availability 
of properties for rent on the Airbnb 
website or app, often supplemented with 
photos, videos, and describing text. 
Payment is done via the Airbnb website 
or app using the Airbnb payment ser-
vice. The host and guest arrange practi-
cal details regarding the rental without 
involving Airbnb directly.
In this business model, the organiza-
tion (Airbnb) offers a platform for medi-
ating between and connecting users 
belonging to different groups (hosts and 
guests). Unlike the ad-based business 
model, the multisided platform business 
model does not use ads to generate rev-
enue but instead receives revenue from 
transaction fees levied when users exer-
cise the services offered by the platform. 
In the platform
business model, the 
matching of users is often motivated by 
the exchange of personal services (e.g., 
Airbnb and Uber) or tangible goods 
(e.g., eBay). There are several variations 
of the multisided platform business 
model; however, the key idea is that a 
platform is employed for connecting dif-
ferent user groups. The BMC the SRM 
of Airbnb is illustrated in 
.
Figs. 
19.12
and 
19.13
, respectively.
The main value proposition (1) of 
Airbnb is to offer a mediation service 
between the two customer segments 
hosts and guests (2). This is done on the 
website 
7
airbnb. com
or the Airbnb 
mobile app (3), in which the guest must 
Key partners
Key activities
Key resources 
Value proposition
Cost structure
Customer segments
Revenue streams 
Customer relationships
Channels
Guests
airbnb.com
SW
development
Hosts
Infrastructure
AirBnB app
Website and
app
4
6
1
Hosts
Hospitality
matching
service
Personell
Customer
service
Booking fee
Network
building
5
2
3
. Fig. 19.12 Airbnb modeled using the BMC. (Authors’ own figure)