Alternative local mobility platforms architecture: functions, enablers, and design

Abstract

Some platforms, specifically on the mobility sector, have as a limitation the fact of not operate in some inner cities. Local mobility platforms have been created with different mechanisms from those already operating in large cities such as Uber, Lyft and 99, for example. Also, some of the local mobility platforms are being so effective on their purpose that they are avoiding Uber and 99 to operate in those small towns. Thus, the main goal of this investigation is to find answers to What is the architecture of a local mobility platform, and how does it is managed? Based on the documental analysis, non-participatory observation and semi structured interviews with developers, managers, and passengers, all related to local mobility platforms operating in small cities of the state of Minas Gerais, Brazil we were able to unveil interesting findings. Local mobility platforms are standing their positioning due to two main factors: (i) drivers management; and (ii) proximity with the passenger. It was found a new characteristic of asymptotic network effect related to the drivers, which when well-managed, promotes strategic defensibility. As theoretical contributions, this work presents a description of local mobility platforms, evidencing the elements that make their business model defensible through a new category of network effect for the drivers. As managerial contributions, this master dissertation offers brand building strategies, emphasizing the importance of the driver to the success of the platform. This work also provokes a discussion related to the work conditions imposed on drivers from traditional platforms and the economic context in which these platforms are inserted.