Network Effects in Digital Transport Platform

Abstract:

The dynamic development of digital technologies contributes to social and economic transformations. Access to various data processing models, artificial intelligence tools, and Big Data analytics is reshaping business models, as well as forms of communication within society. One aspect of this development is digital platforms, which are utilized across most industries and have, in many ways, transformed how services are provided, products are purchased, and content is consumed. Users of digital platforms generate network effects, increasing the value of the network by their engagement. Digital platforms are also used in urban mobility, both in public transport (e.g., ticket purchasing, route planning, timetable tracking) and in shared mobility (e.g., vehicle rentals, information on available vehicles in the network, user reviews). These platforms also create network effects through expanding geographic reach of public transportation platforms, the growing number of shared mobility vehicles, and the increasing number of individuals renting vehicles.