Qualitative and quantitative models of smart contracts implementation in the sharing economy using a case study of Delimobil

Abstract

Purpose This paper aims to explore the potential impact of smart contracts on the sharing economy through the lens of car-sharing company Delimobil. Despite the growing body of literature on smart contracts and the sharing economy, there remains a gap in understanding how these two areas intersect and what implications this could have on sustainability. By reviewing existing literature, analyzing real-world applications of smart contracts within sharing economy platforms and creating a model to quantitatively describe the effect, this study seeks to provide insights into this emerging area of research. Design/methodology/approach This study uses a mixed-methods approach to investigate the impact of smart contracts on the sharing economy through the lens of car-sharing company Delimobil. Initially, a literature review was conducted to conceptualize the sharing economy and smart contract technologies. The proposed generalized business model of a sharing economy company was analyzed to identify attributes amenable to smart contract implementation. Qualitative analysis assessed the effects of smart contracts on these attributes. Subsequently, a quantitative revenue and costs models for the car-sharing company were developed, comparing profit margins before and after smart contract adoption. The costs of maintaining smart contracts in the Delimobil company were also evaluated for a comprehensive cost–benefit analysis. Findings Smart contracts can enhance the efficiency of governance models, mediating interfaces, review systems, revenue streams and pricing mechanisms through automation, security and transparency. This study’s quantitative model, based on Delimobil’s case, shows that smart contracts could increase revenue by 9.7% and reduce costs by 8.13%, while raising IT infrastructure costs from 301m RUB to 484m RUB. Delimobil’s profit could rise from 6,463m RUB to 9,478m RUB. While this demonstrates the potential of smart contracts in car-sharing, the lack of quantitative data and novelty of the technology present challenges for further research. Research limitations/implications This study’s limitations include its focus on a single case study (Delimobil) in the car-sharing industry, which may not be applicable to all sharing economy sectors. Additionally, the static assumption of regulatory and technological environments may not account for future changes that could affect the feasibility of smart contracts. The lack of quantitative research in this field also presents challenges for advancing further studies. Practical implications For practitioners, this research provides a comprehensive view of the pros and cons of implementing smart contracts in car-sharing, based on a detailed revenue and cost model. This analysis, using Delimobil as a case study, shows that smart contracts can increase revenue by 9.7% and reduce costs by 8.13%, although IT infrastructure costs rise from 301m RUB to 484m RUB. This leads to a potential profit increase from 6,463m RUB to 9,478m RUB. Despite the potential benefits, the lack of quantitative data and the novelty of the technology present challenges for further exploration. Originality/value This paper presents an innovative exploration of the intersection between smart contracts and the sharing economy, addressing a significant gap in existing literature. By combining qualitative and quantitative analyses, it offers a comprehensive evaluation of how smart contracts can enhance efficiency, transparency and trust within sharing economy platforms. The study’s mixed-methods approach and detailed cost–benefit analysis of implementing smart contracts in the car-sharing industry provide unique insights and practical recommendations. This research contributes to the growing body of knowledge on blockchain technology’s potential to revolutionize business models in the sharing economy, offering a foundation for future investigations.