Digital multi-sided platform and the chicken and egg issue: some evidences from the MyTaxi/Freenow case study

Solving the chicken & egg dilemma is crucial, and strategically important, in launching a two-sided platforms as their main operations are to link both buyers and sellers. Users decide to adopt a specific platform on their perception, i.e. if they perceive a high value of the platform or not (Bruun et al., 2002, Rask & Kragh, 2004). Over the years, several scholars have tried to identify which practices/strategies are more effective in solving this problem and in overcoming this obstacle. The theme is a central one, and actually there is an ongoing call for more and more research that contributes to unpack the puzzle of chicken & egg dilemma in several new industries. In this vein, the taxi industry is one of the most significant examples, in fact among the new players that entered this industry in the last few years, the mobile app based taxi-hailing digital platforms have become a consolidated reality when they have been able to overcome the natural resistance of the existing players operating in this traditional industry. The aim of this study is to contribute to the existing literature on multisided platforms, and transportation as a system. In doing this, we have studied the case of Mytaxi, or Freenow as it is today called after a recent European re-brand initiative.