investments into stakes in Rover. This merge allows users to access a network
of hundreds of thousands of sitters. In 2016 Rover and DogVacay generated over
$150 million in bookingsFS1 . It is
obvious that DogVacay has been quite successful the last couple of years, but
there are no public numbers regarding their revenues or profits. However,
another way to measure how successful a company has been, is by looking at
their average growth, and comparing it to other similar digital platforms.
According to Lee, Kim & Noh (2016), the average digital platforms has
annual growth rates between the 10 to 25%. DogVacay significantly exceeds these
number with an annual growth rate of 38% in the first year (Henry, 2017). The platform
is still expanding to new cities, thus it is expected that it will keep growing.
in the Sharing Economy
Due to the
rapid digitalization, the economy is changing. The economy is switching from a
basic market model which is based on converting ownership, to a business model
built upon using and sharing products and services (Puschman & Alt, 2016). The
sharing concept is not per se new. BusinessesFS2
can share resources in business-to-business (B2B) domains and
business-to-consumer (B2C) domains. Now the sharing economy has enabled
consumer-to-consumer (C2C) transactions. The development of the C2C
transactions are enabled by three main drivers: changing consumer behavior, social
networks and electronic markets, and mobile devices and electronic services.
Firstly, a change in consumer
behavior has caused that consumers find it more attractive to use goods only temporarily
(Matzler & Kathan, 2015). According to Ekhardt and Bardi (2015) reasons for this change are
convenience, lower prices and ecological sustainability. Users of DogVacay also
make use of temporary consumption, since they only hire a pet sitter for a
short period. Secondly, people are able to share goods, because there are
linked by social networks and community platforms. Additionally, electronic
market platforms reduce the transaction costs. Electronic markets may create skepticism
for quality, but trust and reputation is created by offering rating and feedback
and enabling integrated payments which guarantee refunds if customers are unsatisfied.
This is also the case for DogVacay, since people can rate pet sitters and
transaction costs for DogVacay are low. DogVacay is able to keep its
transaction costs low, because digital platforms can coordinate these complex transactions
in a non-linear and real time way. Lastly, Matzler and Kathan (2015) state that
mobile devices and electronic services allow an ”app economy”. This is an
economy in which services or goods are provided through app platforms. Once
again, this is also the case for DogVacay since it provides its services both
on the internet as well as in the form of an app. Thus we can conclude that
DogVacay actively participates in the sharing economy. There are no articles
it to other digital platforms; growth rates etc.
the discussion it’s hard to find articles that contradict what I’m saying
Untill now no contradiction.