Cross-sectoral collaboration is argued to be vital for business model innovation for sustainability and the tension-filled choices it involves but brings its own complexities. We therefore investigate how institutional logics and power affect the interests and dependencies of City planners and real-estate developers involved in developing a business model for sustainable mobility. Through analyzing how partners deal with tension-filled choices regarding business model elements, we develop a model to explain how compromises are made in partnerships characterized by conflicting interests coupled to strong interdependencies. We finish by cautioning that conflicting interests and power characteristics may delimit the potential for such cross-sectoral collaborations to contribute to sustainable development in sectors where public actors are used to rely on their authority.