Platforms and forestry

Platform economy brings along new opportunities for forestry, ranging from more efficient management to new data-driven services and enhancing of industrial ecology. Increases in the amount and accessibility of forest data as well as data on the raw material cycles enable new solutions and collaborations and invites novel cross-sectoral innovations. Combined with advances in material technology, forests are set to become a key component in the emerging circular economy.

Why is this mportant?

There are three main areas of impact platforms can have in the forestry sector. The first is the gathering, analysis and use of forest data. Digital platforms provide an easy access to forest data. Globally this is linked especially to monitoring forest growth and identifying illegal logging. In Finland the use cases have more to do with increased efficiency of forest management, transparent sales and new services based on data.

The second area of impact is the control of the flow of materials, including wood, cellulose and further refined products. Recycling and end-of-life management also come into the picture. Wood and particularly cellulose, and their recycled fractions, can be the (raw) material for a wide range of products from packaging and clothes to fuels and energy. However, this requires good data on the characteristics of material flows and the efficient coordination of these flows. Here a platform-based system and operation model can be helpful.

The third area of impact is increased collaboration between different actors. A traditional approach is to center the activities around a specific place or plant, and there are signs of a new wave of such industrial ecology platforms, such as the Äänekoski bioproduct mill. What is especially interesting from the point of view of platform economy are the more data-driven and virtual collaborations.

Things to keep an eye on

Having good and reliable data on forests as well as the flow of wood-based materials is essential. Therefore it is worth following how the Finnish law concerning forest data proceeds, as well as what kind of players exist in the forest data business. For example, the US company Trimble acquired two Finnish companies, Silvadata and Savcor, in 2017. Furthermore, as an increasing number of new cellulose-based materials enter the market, it is good to look at the bigger picture of material flows and collaboration between actors.

Selected articles and websites

Bittejä ja biomassaa – Tiekartta digitalisaation vauhdittamaan biotalouteen
Design Driven Value Chains in the World of Cellulose dWoC
Trimble Connected Forest
Infinited Fiber brings radical change to the textile industry
Forest Solutions Platform
Global Forest Watch
The Äänekoski bioproduct mill – a new chapter in the Finnish forest industry
Trimble doubles down on Finnish companies
Finnish plastic replacement raises EUR 1 million
Metsätietolain muuttaminen

Mikko Dufva

Research Scientist VTT Technical Research Centre of Finland Ltd
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Social connectivity in platforms

Platforms are all about enabling connections to form between actors, typically producers and users of any given tangible or intangible commodity. But to what extent do these connections result in social value for individuals? There are of course social media platforms that by definition focus on maintaining or creating human relationships whether based on family ties, existing friendships, professional networking, dating or shared hobbies or interests. Interaction, communication and social ties nevertheless take place in other platforms too, and the positive and negative impacts of these may come as a rather unexpected side effect to the platform owner as well as users.

For example, ride-sourcing and hospitality platforms are virtual matchmakers, whose work comes to fruition when the virtual connection proceeds to a face-to-face meeting. A ride is then being shared with or a home is being rented to someone who only a little while back was a stranger. Many suchlike relationships remain one-time transactions, but they can also grow to regular exchanges over the platform or profound relationships outside the platform. Connectivity is as much a part of peer-to-peer platforms as professional and work-related platforms. You may form a personal connection with a specific IT specialist over the IT support system platform even if you never met them offline. Or supply chain business partnerships may evolve out of a one-time task brokerage platform transaction.

Why is this important?

The benefits of platform economy regarding social connectivity are the wide outreach and extremely fast and efficient matchmaking based on personal, professional of other mutual interests. In spite of complex technologies and big data flows, these social connections on platforms can be truly personalised, intimate and rewarding. The flipside of the coin is risks around privacy, safety and security. Reputation, review and rating systems are important ways to tackle these and could help to strengthen the sense of trust and community across user populations of platforms. In fact, one interesting finding of social connectivity in platforms is that relationships are maintained and formed bilaterally between the individual as well as among groups, communities and actor ecosystems. Short-term or long-lasting, these relationships often mix online and offline realities.

Additional concerns related to social connectivity in platforms is how much they eventually promote equality and fairness or if the social interaction is more of a burden than a benefit. Reputation and rating systems may result in unfair outcomes, and it may be difficult for entrants to join in a well-established platform community. Prejudices and discrimination exist in online platforms too, and a platform may be prone to conflict if it attracts a very mixed user population. In the ideal case, this works well, e.g. those affluent enough to attain property and purchase expensive vehicles are matched with those needing temporary housing or a ride. But in a more alarming case, a task-brokerage platform may become partial to assigning jobs based on criteria irrelevant to performance, e.g. based on socio-economic background. Platforms can additionally have a stressful impact on individuals if relationships formed are but an exhaustingly numberous short-term consumable.

Emerging technologies linked to platforms are expected to bring a new flavour to social aspects of the online world. The hype around blockchain, for example, holds potential to enhance and ease social connectivity when transactions become more traceable, fair and trustworthy. It has even been claimed that blockchain may be the game changer regarding a social trend to prioritise transparency over anonymity. Blockchain could contribute to individuals and organisations as users becoming increasingly accountable and responsible for any actions they take.

Things to keep an eye on

Besides technology developers and service designers’ efforts to create socially rewarding yet safe platforms, a lot also happens in the public sector. For example, European data protection regulation is being introduced, and the EU policy-making anticipates actions for governance institutions to mobilise in response to the emergence of blockchain technology.

An interesting initiative is also the Chinese authorities’ plan for a centralised, governmental social credit system that would gather data collected from individuals to calculate a credit score that could use in any context such as loans applications or school admissions. By contrast, the US has laws that are specifically aimed to prevent such a system, although similar small-scale endeavours by private companies do to some extent already exist.

Visual signal summary: social connectivity in platforms

Selected articles and websites

Investopedia: What Is a Social Credit Score and How Can it Be Used?
General Data Protection Regulation (EU) 2016/679 – EUR-Lex
European Parliament: What if blockchain changed social values?
European Parliament: How blockchain technology could change our lives
Rahaf Harfoush: Tribes, Flocks, and Single Servings — The Evolution of Digital Behavior
Koen Frenken, Juliet Schor (2017): Putting the sharing economy into perspective, Environmental Innovation and Societal Transitions
Paolo Parigi, Bogdan State (2014): Disenchanting the World: The Impact of Technology on Relationships

Heidi Auvinen

Research Scientist VTT Technical Research Center of Finland Ltd
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Gig economy

The new ways of working enabled by platforms are referred to with term such as gig economy, on-demand economy or open talent economy. What is common to all of these is that they redefine the relationship between the employer and employee. While connecting supply and demand of work through a platform is nothing new, there is currently a massive growth in the size of the gig economy, fuelled by increasing online access and willingness to do disparate tasks.

Why is this important?

The welfare system, especially in the Nordic Countries, is based on the assumption of a steady employment with one employer. The current legislation and regulation is not capable of dealing with the new ways of working emerging from the platform economy as traditional criteria for what is considered as taxable income or work regulated by labour legislation no longer fits the scheme. Is everyone an entrepreneur in the platform economy or should the platform be viewed as an employer? How can social security and fair working conditions be ensured?

Gig economy proponents highlight the flexibility and freedom that platforms provide for the worker as well as the company. Especially SMEs benefit from the gig economy, as they are often agile enough to recruit quickly and are more prone to experience changing demand. Critics state that the work is unstable, isolating, stressful and devoid of welfare benefits. Gig economy favours highly skilled people with good health and thus may contribute to societal polarization. Furthermore, it is driving wages down globally, as platforms enable outsourcing of a variety of tasks, thus expanding the global marketplace.

Things to keep an eye on

To ensure fair and decent working conditions, a mix of regulation, new practices and worker collective action is required. The big benefit but also the central challenge with gig economy is that it is global. Regulation puts countries at different positions and workers have a tough time coming together and bargaining in a dispersed global network. For new practices and ways of operating, platform cooperatives are worth keeping an eye on.

For a company wanting to benefit from gig economy the focus should be on improving human relation practices. Employing should be swift and there should be a good balance between full-time and temporary workers. Different metrics to gauge employee satisfaction and working conditions should be in place and up-to-date.

Selected articles and websites

What’s After The Gig Economy? The Talent Economy
What the Gig Economy Looks Like Around the World
How The Gig Economy Will Change In 2017
The Gig Economy Celebrates Working Yourself To Death
Harnessing The Power Of The Open Talent Economy
10 Ways the Gig Economy Can Help Small Manufacturing Businesses
LinkedIn Finds Small Businesses Driving Gig Economy
Ukko.fi saa tuhat uutta asiakasta kuukaudessa – “Lainsäädäntö ei pysy mukana”
Mistä on kevytyrittäjät tehty?

Mikko Dufva

Research Scientist VTT Technical Research Centre of Finland Ltd
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Accounting of information flows: Data balance sheet

Systematic accounting of data and information flows is about to be acknowledged as an integral part of regular internal and public reporting by organisations.  Alongside finances and corporate social responsibility, the topic of data has now found its way to annual reports. Forerunners publish even dedicated accounting reports for data and information flows, something which can be recommended in data-driven sectors.

For example, Finnish Transport Safety Agency Trafi recently published their second data balance sheet (tietotilinpäätös), an annual report describing their data strategy, related architectures and inventory of data and information flows. This supports Trafi in their aim to be a forerunner in collecting data but also opening it up for maximum use for societal benefit. Through digital public sector services and open data policy, Trafi among others encourages data flows between authorities, between authorities and (typically data-producing) users and towards companies to boost business. Examples of Trafi’s data include statistics and registers on vehicles, licences, permits and accidents. Another pioneer in data accounting is the Finnish Population Register Centre, having compiled data balance sheets since 2010, although due to the nature of the registers only a summary of the report is available for the public.

Why is this important?

Platform economy is all about unleashing the cornucopia of opportunities linked to data. Users and producers as well as the functioning of the platform create, process, store and exchange data, and these data and information flows form the key type of interaction in platform economy. Furthermore, many of the emerging technology areas linked to platforms, such as artificial intelligence, blockchain or automation, are extremely data-intensive.

Management of data has therefore become an increasingly critical and strategic part of activities of companies, public sector authorities and even individuals. On the one hand, data is an asset of real value, but on the other hand, this value can only come to fruition and grow through sharing and opening. This challenges existing business logics in many sectors, where data previously had little or no role or where data flows and information systems used to be strictly in-house matters.

Arguments favouring the introduction of data accounting to regular managerial and strategy work of organisations include both discovering opportunities but also addressing threats and uncertainties. Systematic data accounting helps internal monitoring and improvement, and an open approach helps to expand collaboration and partnerships with others (users, customers, companies and authorities). Accounting should also include responses and preparedness for safety and security issues as well as strategies related to data ownership, surveillance and fulfilment of possible regulatory requirements.

Things to keep an eye on

A significant change factor in the topic of data management in Europe is the data protection regulation (EU) 2016/679 that is to be applied in all European Union Member States in May 2018. This regulation addresses the protection of natural persons with regard to the processing of personal data and on the free movement of such data.

European Data Protection Supervisor lays out a definition of accountability in the meaning that organisations need to “put in place appropriate technical and organisational measures and be able to demonstrate what they did and its effectiveness when requested”. Suchlike measures include “adequate documentation on what personal data are processed, how, to what purpose, how long;  documented processes and procedures aiming at tackling data protection issues at an early state when building information systems or responding to a data breach; the presence of a Data Protection Officer that be integrated in the organisation planning and operations etc.”

Another great resource on the topic is the recent publication by the Finnish Government´s analysis, assessment and research activities on use and impacts of open data.  The report describes the openness of major data resources maintained by the public administration and on means to assess the economic impacts of open data in Finland. An analysis of the relationship between firms’ use of open data and their innovation production and growth is also provided. To conclude, the report proposes specific recommendations how to enhance the impact of open data in our society, including the use of tools such as data balance sheets.

The European Digital single market strategy and especially the subtopic of online platforms fits well into the above-mentioned discussion. Issues addressed under these activities include for example concerns about how online platforms collect and make use of users’ data, the fairness in business-to-business relations between online platforms and their suppliers, consumer protection and the role of online platforms in tackling illegal content online.

Guidance on how to prepare a data balance sheet is provided by for example the Finnish Data Protection Ombudsman in English and Finnish.

Selected articles and websites

General Data Protection Regulation (EU) 2016/679 – EUR-Lex
European Data Protection Supervisor: Accountability
European Commission: Digital single market – Online platforms
Valtioneuvoston kanslia: Avoimen datan hyödyntäminen ja vaikuttavuus
Liikenteen turvallisuusvirasto Trafi: Tietotilinpäätös 2016
Väestörekisterikeskus: Tietotilinpäätös
Data Protection Ombudsman: Prepare a data balance sheet
TechRepublic: Data’s new home: Your company’s balance sheet

Heidi Auvinen

Research Scientist VTT Technical Research Center of Finland Ltd
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Open innovation platforms

The concept of open innovation has been around for some time. The basic idea is that organisations open up their innovation processes to other companies as well as end-users and other stakeholders. Besides traditional face-to-face workshops and physical innovation spaces, digital platforms can be used to facilitate the matching between challenges and solutions, to prioritize ideas and to offer a place for collaboration and co-creation. Hackathons are an example of  modern innovation platforms combining the best of the physical and digital innovation platforms.

Why is this important?

Open innovation platforms benefit at best the whole innovation ecosystem or network. Problems get solved quicker, new solutions are more suitable for end-users and stakeholder collaboration is enhanced. Digital solutions also broaden the outreach and allow participants of different backgrounds, expertise and location to contribute. While open innovation platforms have been used internally in companies and more openly in research and development, digital solutions are finding their way also to the public sector, especially to citizen engagement in local communities. This makes city development more transparent and opens up the door for smaller companies to compete in public procurement.

Things to keep an eye on

The current trend is towards more openness and from company ownership to network-based shared ownership of the innovation platform. Instead of a company having its own open innovation platform, the platforms are framed as ecosystem level collaboration spaces or solution marketplaces. On the public sector side open innovation platforms are used not just for seeking technological solutions to societal challenges, but also to foster social innovation. However, there are underlying questions that for the time being  remain open, e.g. who owns the intellectual property at the end of the day, what are the benefits or compensation for participants or who all benefit from the platform .

Selected articles and websites

How open innovation platforms support city development?
TOP 10 Open Innovation Platforms
Open Ecosystem Network
The visibility of ethics in open innovation platforms
16 Examples of Open Innovation – What Can We Learn from Them?
Integrating Open Innovation Platforms in Public Sector Decision Making: Empirical Results from Smart City Research
Sitra: Ratkaisu 100

Mikko Dufva

Research Scientist VTT Technical Research Centre of Finland Ltd
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Digital activism

Internet, platforms and digital technologies offer new ways of spreading the message and organising action for different cause-driven movements and citizen activism. This digital activism is not limited to using platforms to support existing forms of activism, but also takes advantage of the new opportunities platforms give for distributing value and providing access for information.

Why is this important?

The clear benefit of platforms for activism is new tools for communicating, deliberating, organising and connecting. Platforms such as Enspiral support a collaborative culture, constructive deliberation and collective decision making. They pool together resources such as money, time and skills to promote a jointly agreed upon set of projects. There are also platforms aimed at explaining obscure policies or laws or doing the increasingly important fact-checking.

In addition to tools, there is a quieter form of digital activism, one aimed at changing societal structures of access of information and distribution of value. Projects building ad hoc digital networks or internet access points aim to circumvent restrictions on the access to information. Platform cooperatives aim to reshape the way value is distributed within the system. In general, the aim is to improve the possibilities of those that are respressed or silenced via digital cencorship, or left out in the winner-takes-all forms of digital economy.

Things to keep an eye on

Digital activism suffers from so called “clicktivism”, where people are eager to support a cause if it just means clicking a button. Then when nothing changes, people lose their faith also in other forms of activism. Therefore digital activism needs also “off-line” activism. At best, digital activism can support other forms of activism, at worst it can undermine them.

There are also interesting examples of what can emerge out of the interface between the physical and digital in the age of smart phones and ubiquitous connectivity. One such example is the “I’m being arrested” app, which is a panic button for demonstrators to let a preselected group of people know that they are in trouble. Using location aware and camera equipped smartphones provides new tools for ensuring transparency and fair treatment.

On the flipside, digital activism raises also questions about ethics and responsibilities. Whistleblowing and the leaking of classified information may be a necessary alarm call in some cases, and in others it may just do more harm through unintended side effects. It is worth noting where the activism rises and what are its underlying intentions. There is also the question of drawing a line between civil disobedience, mischief “for the lolz” and outright criminal activity.

A potential transformation may happen  through the adoption of the tools for collective decision making and deliberation, as they find their way increasingly to more conventional arenas of decision making. It is interesting to see if they change the forms of governance.

Selected articles and websites

How a new wave of digital activists is changing society
Digital and Online Activism
Flex your political activist muscles with these resources
Mobile Justice (Team Human podcast with Jason van Anden)
Enspiral – more people working on stuff that matters
Loomio – making decisions together

See also our signal on persuasive computing

Mikko Dufva

Research Scientist VTT Technical Research Centre of Finland Ltd
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Persuasive computing

In the aftermath of the US election, the power of social media filter bubbles and echo chambers has again evoked discussion and concern. How much can algorithms influence our behaviour?

Why is this important?

Data is a key part of the functioning of any platform, and analysis and filtering of data streams allows, for example, tailoring of the platform’s offering based on user data. This is evident in content platforms such as Facebook or Youtube, which learn from your behaviour and customise the user view and suggested contents accordingly. This filtering for personalised experience is valuable and helps the user navigate in their areas of interests, but there are also various drawbacks.  Filtering and especially its invisibility can cause ‘filter bubbles’, where the user experience is threatened to limit to information that reinforces existing beliefs. This leads to polarization. What is even more troubling is that the algorithms can be tweaked to manipulate the feelings of users, according to a 2014 study done by Facebook without the users knowing.

Things to keep an eye on

The debate is now on-going as to how much algorithms can affect our actions. Some claim that the analysis and manipulation of social media feeds was instrumental in the US elections, while some say that the claims are overrated and the hype mostly benefits the analytics companies. In any case, the filtering of data is not inconsequential and there are increasing calls for more transparency to the filtering algorithms as well as for the ownership of the behavioural data collected through platforms. In part this issue becomes more and more topical with the advances in artificial intelligence, which makes data analysis more sophisticated and accessible. There are also interesting experiments – often with artistic goals – in confusing the algorithms in order to make the data they collect unusable by the platform owner.

Selected articles and websites

Will Democracy Survive Big Data and Artificial Intelligence?
The Rise of the Weaponized AI Propaganda Machine
The Truth About The Trump Data Team That People Are Freaking Out About
Robert Mercer: the big data billionaire waging war on mainstream media
How to hide your true feelings from Facebook
Persuading Algorithms with an AI Nudge

Mikko Dufva

Research Scientist VTT Technical Research Centre of Finland Ltd
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Distributed autonomous organization

A distributed (or decentralised) autonomous organisation (DAO) is a new form of organising business transactions, one in which all agreements and transactions are done through code and saved in a shared ledger. It is enabled by blockchain and smart contracts. In a DAO there is no management, but instead complete transparency (as all the transactions are shared) and total shareholder control (as anyone that takes part in a DAO can decide what to do with the funds invested). More broadly, a DAO is an experiment of organising business transactions, where trust is outsourced to code and blockchain. The prominent example of a DAO is aptly named “The DAO”, which is an investment fund without management.

Why is this important?

DAO is a structure built upon a blockchain platform such as Ethereum. It is itself also a type of platform in that through it many types of transactions can be done. DAO is an example of how platforms do not just transfer old ways of organising to digital, networked world, but instead enable new forms of organising and governance. DAO is a structure on which to build different types of activities from investment funds to shared data repositories. It can be used to organise an autonomous ridesharing ecosystem, where there are competing applications for matching, payment, user interface etc, all working seamlessly together. It enables new governance models, such as “futarchy”, which uses a prediction market to choose between policies.

DAO can also be seen as a response to the transformation in work, much like platform cooperativism. As work becomes more like a risky investment than a steady source of income, organisational structures can help cope with the new reality. Whereas platform cooperatives solve the problem by using digital platform to enable fair distribution of value and power, DAOs try to achieve the same through smart contracts, code and blockchain – in other words without humans who could risk the fairness of the system.

Things to keep an eye on

DAOs are based on the idea that all rules can be embedded in the code and system. Smart contracts are described as plain English, but what matters really is the code that defines what the contracts do. Code is susceptible to human error, which means that those agreeing on the conditions of the contract must be able to decipher the code or trust that someone has checked it. An interesting example of what this can lead to happened last spring in The DAO.

In June 2016 a hacker managed to use a vulnerability in a smart contract and transfer a large amount of funds to another contract within the DAO. This led to an ideological discussion about what to do: should this transaction be cancelled and the immutability of the blockchain thus questioned, or should those who lost their money just accept what happened. Because there is no one officially in control, the developers of the Ethereum platform, on which The DAO operates, recommended as their preferred solution “hard fork”, i.e. to cancel the transaction and gave the decision to participants of The DAO. A majority voted in favour of the hard fork, but the original version of the blockchain containing the disputed transaction still exists as “Ethereum Classic”.

The example above indicates how the practices around DAOs are developing. Blockchain technology is still in its infancy and lots of failures and experimentation on the applications are to be expected. There is now clearly a need for built-in governance systems for dispute settlement. One example of this is Microsoft’s project Bletchley, which aims to develop a distributed ledger marketplace and “cryptlets” that would work in the interface between humans and the blockchain implementations. Cryplets would basically mix more traditional methods to ensure trust with blockchain.

On a broader level there is the question of whether or not a DAO is an organisation and what is its legal status or the role of the tokens that represent funds or other assets. There is also the question of whether there is really a need for such an organisation, which eliminates middlemen completely, as middlemen can be useful and provide services other than just matching demand and supply. On a technological and more long-term note, as the blockchain is based on encryption, it is vulnerable to quantum computers, which could break the encryption by calculating private keys from public keys in minutes.

Selected articles and websites

Post-blockchain smart contracts creating a new firm
TED Talk: How the blockchain will radically transform the economy | Bettina Warburg
The humans who dream of companies that won’t need them
The Tao of “The DAO” or: How the autonomous corporation is already here
The DAO: a radical experiment that could be the future of decentralised governance
Why Ethereum’s Hard Fork Will Cause Problems in the Coming Year
The gateway to a new business order: Why crowdfunding is just the start of the next era of organisations

Mikko Dufva

Research Scientist VTT Technical Research Centre of Finland Ltd
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Social impacts of the platform economy

Platforms create value well beyond economic profits, and the topic of social and societal impacts resulting from the emerging platform economy has been getting more and more attention lately. Platform economy undoubtedly has both positive and negative impacts on individuals and families as well as wider communities and entire societies. However, the range and depth of these impacts can only be speculated, as only very early evidence and research on the topic has been produced. After all, the platform economy is only in its infancy.

Why is this important?

Platforms have potential to address major societal challenges such as those connected to health, transport, demographics, resource efficiency and security. They could massively improve our individual daily lives as well as contribute to equal opportunities and progress in developing economies. On the other hand, platform economy can result in negative impacts in the form of disruptions and new threats. Privacy and safety concerns have deservedly been acknowledged, and other possible risks include those related to social exclusion, discrimination and the ability of policies and regulations to manage with whatever platform economy may bring about.

Some examples of positive and negative social impact categories of the platform economy include the following, which may distribute equally, create further division or bridge the gap among various social segments:

  • employment and unemployment
  • livelihood and wealth
  • education and training
  • skills, knowledge and competences
  • health and physical wellbeing
  • mental health and wellbeing
  • privacy, safety and security
  • social inclusion or exclusion, access to services, etc.
  • new social ties and networks, social mixing
  • social interaction and communication: families, communities, etc.
  • behaviour and daily routines
  • living, accommodation and habitat
  • personal identity and empowerment
  • equality, equity and equal opportunities or discrimination
  • citizen participation, democracy
  • sufficiency or lack of political and regulatory frameworks.

Platforms may have very different impacts on different social groups, for example, based on age, gender, religion, ethnicity and nationality. Socioeconomic status, i.e. income, education and occupation, may also play an important role in determining what the impacts are, although it is also possible that platform economy balances out the significance of suchlike factors. One important aspect requiring special attention is how to make sure that vulnerable groups, such as the elderly or those with disabilities or suffering from poverty, can be included to benefit from the platform economy.

Things to keep an eye on

Value captured and created by platforms is at the core of our Platform Value Now (PVN) project, and there are several other on-going research strands addressing social and societal impacts of the platform economy. One key topic will be to analyse and assess impacts of the already established platform companies and initiatives, which necessitates opening the data for research purposes. To better understand the impacts and how they may develop as platform economy matures is of upmost importance to support positive progress and to enable steering, governance and regulatory measures to prevent and mitigate negative impacts.

Selected articles and websites

Koen Frenken, Juliet Schor, Putting the sharing economy into perspective, Environmental Innovation and Societal Transitions, (2017)
The Rise of the Platform Economy
Uber and the economic impact of sharing economy platforms
VTT Blog: Openness is the key to the platform economy
SUSY project: Solidarity economy

Heidi Auvinen

Research Scientist VTT Technical Research Center of Finland Ltd
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Alternative forms of platforms in ridesharing

Services like Uber and Lyft are the dominant platforms when it comes to getting a ride from A to B. Recently there has been a movement to delete the Uber app, driven the companies actions in relation to president Trump’s so called Muslim ban. This has benefited Lyft, but also drawn attention to other alternatives. These alternatives use platform thinking not only to optimize the matching of drivers and customers, but also to restructure the way value is shared.

Why is this important?

Different forms of platforms lead to different impacts. Lyft and Uber operate as companies seeking growth and maximizing value for their shareholders. This leads them to focus on scaling and increasing efficiency. On the other hand, locally based platform cooperatives, such as Denver-based Green Taxi Cooperative, try to grow to a sustainable size and share the profits among workers and users of the platform. Green Taxi Cooperative was born as a reaction to Uber by the local taxi industry and could be seen as an example of a counter trend to global winner-takes-all platforms.

La’Zooz, on the other hand, utilizes the decentralization enabled by blockchain and is an example of a distributed, decentralized organization owned by its users. Libre Taxi is an open-source app freely implementable by anyone. What is noteworthy in these decentralized alternatives is that they can cater for situations where companies like Uber have no interest, such as ridesharing in Siberia.

Things to keep an eye on

The #DeleteUber issue is an interesting example of the direct power of consumers in platforms. The question that remains to be seen is whether these kinds of movements have any actual impact, or does the ease of use make users forget about the behaviour of the platform company. The emergence of platform cooperatives and the adoption of blockchain-based services will undoubtedly change the forms of platforms. Also it is interesting how complex services can already be built on top of other platforms (Libre Taxi is built on top of messaging service Telegram).

Selected articles and websites

#DeleteUber reportedly led 200,000 people to delete their accounts
Denver Taxi Drivers Are Turning Uber’s Disruption on Its Head
Green Taxi Cooperative: Building an alternative to the corporate “Sharing Economy”
La’Zooz: The Decentralized, Crypto-Alternative to Uber
La’Zooz website
LibreTaxi website
Uber-like app in no time with JavaScript and secret sauce

Mikko Dufva

Research Scientist VTT Technical Research Centre of Finland Ltd
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