Sharing for a circular economy? an analysis of digital sharing platforms’ principles and business models

Circular economy policies are on the rise globally. Several studies point to a large potential of digitalization and sharing practices for realizing a circular economy. Yet, little empirical evidence is available on the aims, self-perceptions and business models of sharing-practice providers. This study scrutinizes the providers’ view on their practices, analyzing circular economy principles and goals as well as sharing business models of 73 German-speaking digital sharing platforms. Our results show that all digital sharing platforms identify strongly with the circular economy while tending towards a limited number of principles, goals and profit-oriented business models. We develop a typology of digital sharing platforms’ orientation, including (1) social interaction, (2) profit and sustainability, and (3) mixed goals and business models. Our typology complements evolving theoretical frameworks and categorizations of (digital) sharing practices with a stakeholder-based perspective. For the first time, we relate mixed scholarly expectations about digital sharing platforms with mixed real-world motivations and business models across many sectors. These findings could help to pave the way for the nascent research on the role of digitalization for sharing practices. •We scrutinize the potential of digital sharing platforms for realizing a circular economy.•73 German-speaking digital sharing platforms are examined by their goals and business models.•All identify strongly with the circular economy but tend towards few goals and business models.•We develop a typology of platform orientations and business models.•Our typology complements evolving frameworks and categorizations of digital sharing practices.