An exploration of digital ride-hailing multisided platforms' market dynamics: empirical evidence from the Uber case study

Abstract

PurposeThe purpose of this paper is to experiment a dynamic performance management (DPM) approach to explore and assess the business dynamics of digital ride-hailing platforms with a focus on both supply and demand sides, and related interplays.Design/methodology/approachThe research adopts the DPM framework supported by simulation-based experimentations for developing a systemic case interpretation of Uber Inc. and its specific business complexity.FindingsThe emerging scenario analysis reveals that changes in the commission percentage for drivers and cutting prices for customers (car hailers) by competitors have significant impacts on the car-hailing industry.Originality/valueDPM and associated simulation-based analysis of the ride-hailing business may provide significant managerial decision insights and a ground base research in a relatively less-explored field within the strategic management domain.