6533b7d4fe1ef96bd1261ff1

RESEARCH PRODUCT

Co-evolution of three mega-trends nurtures un-captured GDP – Uber's ride-sharing revolution

Kashif NaveedChihiro WatanabeChihiro WatanabePekka Neittaanmäki

subject

Sociology and Political Sciencemedia_common.quotation_subjectTaxisHuman Factors and ErgonomicsBusiness modelEducationICT-driven disruptive business model0502 economics and businessEconomicsride-sharing revolutionBusiness and International ManagementArchitectureFunction (engineering)Uber's system successmedia_commonta11305 social sciencesVirtuous circle and vicious circleEconomyInformation and Communications TechnologyParadigm shifttwo-faced nature of ICTTRIPS architectureun-captured GDP050211 marketingEconomic system050203 business & management

description

Uber used a disruptive business model driven by digital technology to trigger a ride-sharing revolution. The institutional sources of the company’s platform ecosystem architecture were analyzed to explain this revolutionary change. Both an empirical analysis of a co-existing development trajectory with taxis and institutional enablers that helped to create Uber’s platform ecosystem were analyzed. The analysis identified a correspondence with the “two-faced” nature of ICT that nurtures un-captured GDP. This two-faced nature of ICT can be attributed to a virtuous cycle of decline in prices and an increase in the number of trips. We show that this cycle can be attributed to a self-propagating function that plays a vital role in the spinoff from traditional co-evolution to new co-evolution. Furthermore, we use the three mega-trends of ICT advancement, paradigm change and a shift in people’s preferences to explain the secret of Uber’s system success. All these noteworthy elements seem essential to a well-functioning platform ecosystem architecture, not only in transportation but also for other business institutions. peerReviewed

yearjournalcountryeditionlanguage
2016-01-01
10.1016/j.techsoc.2016.06.004http://pure.iiasa.ac.at/id/eprint/13313/