Spillover in Sharing Economies : Network Effect of Bike-sharing Services on Home-sharing Performance

The sharing economy has become a significant force in the modern economy as consumers seek out convenient and cost-effective alternatives to traditional forms of ownership and consumption. Among its disruptive applications in various industries, bike-sharing, as a unique last-mile instrument, provides a convenient transportation layer with its inter-connected bike station network. However, little is known about how its network structure redistributes local business performance. To fill this gap, this study aims to explore the potential complementarity between two separate yet interrelated sharing services: bike sharing and Airbnb. Using data from CitiBike and Airbnb, the largest bike-sharing system in the US, the study conducts a difference-in-difference analysis to examine the effect of new bike-sharing entries on local home-sharing performance. The results show that new bike-sharing entries increase nearby Airbnb properties' monthly revenue by $127, accounting for 9.59% of monthly revenue. This increase is due to higher occupancy rates (2.3%) and nightly prices ($7.8). Further analysis reveals that the bike-sharing network-induced flexibility and travel savings account for a marginal revenue improvement of $1.41 (per reachable station), $0.27 (per second saved), and $17.36 (per dollar saved). The study also uncovers the moderating effect of first/last mile connection and property luxuriousness on the role of the bike network impact. Overall, the results show that the bike-sharing network's structure is critical to reshaping the spatial distribution of Airbnb profit. Our findings have important implications for both the design of the bike-sharing service network and home-sharing marketing.