Towards a New Business Model Canvas for Platform Businesses in Two-Sided Markets

Abstract

Purpose This study aims to increase the understanding of digital platform businesses and business model innovation in two-sided markets. Design/methodology/approach A new business model canvas tool was created through abductive reasoning and a real-life case study. The case was a unique driving school digital platform that belongs to employee and professional service platforms. Findings The proposed business model canvas is based on Scholten’s canvas (2016) for platform businesses and complements it by acknowledging changes in people’s values and macro-environmental factors as new elements. Research limitations/implications (if applicable) The study is limited to an exemplary case of a driving school digital platform. However, the results and the novel canvas tool can be applied to innovating business models for digital service platforms in many industries. Originality/value The novelty of the study is derived from the insights created by the case study and the new tool that helps platform businesses innovate in two-sided markets. Keywords: digital business model; two-sided market; canvas; value proposition; values; PESTEL