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1. The Rise of the
Platform Economy
Jovana Karanovic

2. 2The Economist, 2013

3. 3

4. 4

5. Agenda
⬛ Introduction
⬜ What is the platform economy?
⬛ Emergence of the platform economy
⬜ How did the platform economy emerge?
⬜ Traditional businesses vs. platforms
⬛ How can platforms change the way we work?
⬜ Positive sides of the platform economy
⬜ Negative sides of the platform economy
⬛ Q&A
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6. What is the Platform Economy?

7. The Platform Economy
The Platform
Marketplace
Asset-sharing
platforms
On-demand
labor
platforms
The online labor
markets
(e.g.Upwork, AMT)
Mobile labor
markets (Helpling,
TaskRabbit)
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8. Emergence of the Platform
Economy

9. How did the Platform Economy Emerge?
Due to…
⬛ Advancements in information and communication
technologies lower transaction costs
⬛ Ability to leverage on communities vs. features of a product
⬛ A possibility to grow by exploiting network effects
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10. 10
Key shifts Traditional
businesses
Platforms
Value creation Value-chain model Facilitation of interaction
Scarce/inimitable
assets
Assets/intellectual
property (e.g. mines,
real-estate)
The network of
producers and
consumers
Value maximization Maximizing transactions
with end consumers
Maximizing value of
circular ecosystem
Traditional businesses vs. platforms

11. How Can Platforms Change the
Way We Work?

12. Positive Sides Of the Platform Economy
⬛ On-demand labor platforms could produce globally $2.7
trillion extra GDP growth, benefiting 540 million individuals
(McKinsey Global Institute, 2015)
⬛ Human capital specialization (due to better matching across
the globe)
⬛ Flexible working hours, more freedom
⬛ Increased possibility of outsourcing
⬜ More opportunities for disadvantaged and underutilized
population
⬜ “Borderless immigration”
⬛ Opportunities for individuals with uncommon skills
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13. Negative Sides Of Platform Economy
⬛ Temporary jobs = income insecurity
⬛ At the moment, there are more registered contractors than
employers
⬜ Less chance of being selected
⬜ Lower wages
⬛ Employers might favor better value for money (resulting from
lower search costs)
⬜ Lower incomes for workers in rich countries
⬜ High wages for the best quality workers
⬛ Mobile labor markets can disrupt local services (e.g. Uber
with taxi drivers)
⬜ This can have negative net effects on total employment
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14. Future lookout
⬛ Dominant form of organizing – platform capitalism – could be
replaced by platform cooperativism
⬜ More power to workers
⬜ Platform could grow by replication vs. scaling
⬜ Businesses operating locally but cooperating globally
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15. Thank you
Jovana Karanovic
j.karanovic@uva.nl
Twitter: @karanovic_j
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