How do platform-based business models create competitive advantages by saving time for users?

Purpose: This paper explores and critically discusses how platform-based business models create competitive advantages by saving time for users. It investigates the theoretical foundations and practical implications of timesaving as a core value proposition in platform businesses. Design/methodology/approach: This viewpoint article integrates insights from transaction cost economics (TCE), convenience theory, network effects, technology adoption model, and platform literature along with practical illustrative cases to discuss time-saving mechanisms. Findings: We propose that time efficiency is a key strategic lever in platform-based business models, enabling platforms to enhance user experience, reduce transaction costs and provide a streamline user experience. However, time-saving is not always the primary driver for all users, as some consumers seek richer and more immersive experiences. The paper also highlights trade-offs and challenges for platforms seeking a time-saving advantage, including privacy concerns and sustainability challenges. Originality/value: Scientific and practical literature studies have explained the rise of platform businesses owing to factors such as disintermediation, efficiency, the use of external instead of internal resources and others. Despite this, there seems to be little knowledge both from a scientific perspective and practical discourses among practitioners on how the “time” factor may represent a driver for competitive advantage in platform businesses. This study aims to fill this gap and explain the great momentum of platforms relying on the time-saving factor.