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.