Published in «Creative Economy»1 / 2019
DOI: 10.18334/ce.13.1.39744

Business uberisation phenomenon and its limits

Tagarov Bato Zhargalovich, Baikal State University, Russia

Феномен уберизации бизнеса и его границы - View in Russian

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Highlights:
• Uberisation is the process of shifting buyer-seller interactions to a digital platform that creates added value for buyers and sellers through information technology.
• The main features of the business model built in the process of Uberisation are: reduction of buyers and sellers uncertainty, use of mobile devices, cutting out intermediaries, use of previously unused resources in the production.
• The resource allocation during Uberisation is managed by the "invisible hand" of the market. Unlike the free market, the key rules of interaction are set by the digital platform owner through which the exchange is made.
• In theory, there are several complementary approaches explaining why the Uberisation process is implemented efficiently in some segments of economy and not in others. These are the transaction cost economics, the tacit knowledge theory and the QWERTY effect theory.
• The Uberisation process is limited by the value of interaction transaction costs. Therefore, an "uber app" can be effective only if it indeed can cut such costs.
• The Uberisation process is effective when the interaction of the participants in the system is based on the explicit knowledge sharing. If implicit knowledge needs to be transferred, simplifying and standardizing the business process can only do harm.
• The Uberisation process implies full adjustment and "reengineering" of the existing market model. This suggests the need for overcoming resistance of actors who benefit from the existing institutional system, as well as the problem of network effects.

Abstract:
In this article, the author analyzes the uberisation process and defines the main features of this business model. The basic approaches to the definition of the term “uberisation“ are considered. It is concluded that the uberisation process is to replace the hierarchical intra-corporate relations to the horizontal market relations. An analysis was made of theoretical approaches to determining the possibility of such replacing: the transaction cost economics, the information asymmetry theory, the tacit knowledge theory and the QWERTY effect theory. The uberisation process efficiencies and its limits were determined.

Keywords:

and the digital economy, asymmetric information, information economy, transaction costs, uberisation

JEL-Classification: D02, D47, L26

Citation:
Tagarov B.Zh. (2019). Business uberisation phenomenon and its limits [Fenomen uberizatsii biznesa i ego granitsy]. Creative Economy, 13(1). (in Russian). – doi: 10.18334/ce.13.1.39744.


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