Dark side of platform business

Abstract

Digitization has enabled a new way of working, developing products and services. With the emergence of platform economy, the world has increasingly become more connected than ever before allowing companies and people to share information with each other. A platform business model, also called multi-sided platforms, enables interaction between various participating groups. Even though these groups are platform dependent, but in most cases, they can be distinguished between the supply-side and demand-side. For the platform model to work, the business should add value to both the sides. Even though platform business is not a new concept, but it has gained momentum recently supported by global digital technology. Companies, especially technological companies, are increasingly adopting the platform business strategy owning to the multiple advantages it offers. Compared to the outdated linear models, platform business models are far more costeffective and scalable. But the academic literature gives a biased view of the situation by just focusing on the positive side of the model and not giving enough attention towards the negative side that can lead to this model being unsustainable in the long run. Our research primarily focuses on the negative side of the platform business strategy in India. We have tried looking into three different industries to understand the factors that motivates characteristics of the two sides of the platform showing the dark side of the business model and enables them to take unfair advantage of itW.