SERVICE PRICING CHALLENGES ON SHARED PLATFORM: UBER INDIA VS DIDI CHUXING

Abstract

One of the major outcomes of digitalization has been the advent of Platform based business models which are covered under the larger ambit of sharing economy. As resources in the digital age is being shared and focus of these new age companies are on building a new kind of business models, pricing becomes the key. Especially, service pricing and how the same will hold forth here in shared economy. The paper is an attempt to look at two contrast markets, China and India and to assess how the pricing is managed on shared platforms. For Didi Chuxing in China and Uber in India, the context of service pricing and how regulated versus unregulated markets operate. A conceptual framework at the end gives a possible direction to understand the dimension of service pricing in emerging markets.

Keywords

• sharing economy
• platform economics
• two-sided markets
• service pricing