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"Platform-based strategies have become increasingly popular and successful in the current business landscape, as organisations including Amazon, Paypal, and Airbnb have leveraged network effects to create value in their respective markets. Understanding the intricacies and
building blocks of network effects is crucial for companies seeking to create successful platform-based strategies in today's interconnected world. Therefore, this research study sought to investigate the extent to which network effects drive a sustainable competitive advantage for
ride-hailing platforms. Through a review of the literature on platform strategy and the analysis of three case studies, the research discovers that network effects are required for companies to compete in the ride-hailing industry, but that they rarely result in a defensible competitive
advantage. Furthermore, the most crucial elements that affect the success of ride-hailing platforms have been identified as funding, strategy locality, and brand strength. The research also highlights the differences in company strategy during the Achieving Scale and Sustaining Scale phases. Moreover, this industry struggles to achieve sustainability due to weak business models that are centred on growth at any cost. This study adds to the existing literature on network effects and offers guidance to investors, entrepreneurs, and decision-makers in the ride-hailing sector."
