Co-evolution of three mega-trends nurtures un-captured GDP – Uber's ride-sharing revolution
Watanabe, C., Naveed, K., & Neittaanmäki, P. (2016). Co-evolution of three mega-trends nurtures un-captured GDP – Uber's ride-sharing revolution. Technology in Society, 46 (August), 164-185. doi:10.1016/j.techsoc.2016.06.004
Published inTechnology in Society
© 2016 Elsevier Ltd. This is a final draft version of an article whose final and definitive form has been published by Elsevier. Published in this repository with the kind permission of the publisher.
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. ...