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Closed Platforms Open Doors: Deriving Strategic Implications from the Free-Floating Car Sharing Platform DriveNow

Author:

Curtis Goldsby

Department of Management, London School of Economics and Political Science, GB
About Curtis
MSc in Information Systems and Digital Innovation
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Abstract

This paper examines the free-floating car-sharing company DriveNow, governed by a joint venture of BMW Group and Sixt SE. The platform-mediated network model is used to determine DriveNow is a closed platform. Relating this to adoption/appropriability characteristics, I show how the closed nature of the platform strategically affects DriveNow.

It is concluded that DriveNow, although closed, can pursue at least three successful platform strategies, but struggles capitalizing on multi-sided network effects. The paper thus shows how a closed platform born through traditional ventures, despite growth bottlenecks, also has the potential to disrupt industries.

How to Cite: Goldsby, C., 2017. Closed Platforms Open Doors: Deriving Strategic Implications from the Free-Floating Car Sharing Platform DriveNow. iSCHANNEL, 12(1), pp.17–24.
Published on 01 Sep 2017.
Peer Reviewed

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