Platform Capitalism

6 important questions on Platform Capitalism

What is the definition of platform capitalism?

Platforms in sum are a new type of firms. These platforms also come with a series of tools that enable their users to build their own products services, and marketplaces.

What are the different forms of platform capitalism?

1 Advertising platforms (Google, Facebook)
2 Cloud platforms (Salesforce)
3 Industrial platform (Siemens)
4 Lean platforms (Uber, Airbnb, attempt to reduce their ownership of assets to a minimum and to profit by reducing costs as much as possible)

What is the first characteristic of platform capitalism?

1 A platform provides the basic infrastructure to mediate between different groups, produce and are reliant on network effects. This generates a cycle whereby more users beget more users, which leads to platforms having a neutral tendency towards monopolization
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What is the second characteristic of platform capitalism?

Embody a politics; the rules of product and service development, as well as marketplace interactions are set by the platform owner. Platform control and govern the rules of game.

What are the critiques on platform capitalism?

1 Network effects - monopolization
2 politics - control the game
3 Dependent on internet and technology - created a new class who has ownership over information
4 Advertising platforms appropriate data as a raw material
5 Lean platform operate through a hyper outsourced model - workers are outsourced, fixed capital is outsourced, maintenance costs are outsourced and training is outsourced.

Characteristics of post-capitalism for society?

Free time, free stuff and network activity

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