What do companies who do online trade-in common? All of these are part of a new economic revolution known as the platform economy. Driven by innovations and an increase in online connectivity, these companies are redefining the way people live, work, and play.
Understanding Platform Governance
The companies have revolutionized the way businesses create and deliver services using web and mobile app-based platforms. In this way, they created new market conditions that upset their respective industries, forcing them to follow others or quickly lose market share. It is found that these companies were successful, but lacked guidelines to control and protect users that are customers and employees on these platforms compared to traditional companies. This economic change has brought new challenges and questions to society, the labor market, and the organization.
What is a platform economy?
The platform economy is a relatively new phenomenon and has been very successful in recent years. To stay competitive, more and more companies are beginning to adopt this business model with a list of best practices and digital strategies. By definition, the platform economy is any type of digital platform that uses the Internet to connect individuals and facilitate interactions between them. This business model has three aspects: platform, worker, and customer. The job of the platform is to connect people in demand of customers with those who provide supplies who are workers.
Why is platform governance so important?
The term Platform Governance is a rule, practice, and design introduced to influence the filtering and display of content, ensure collaboration, and monitor community behavior to prevent abuse between users. As mentioned earlier, the unique circumstances surrounding the platform economy lack guidelines for managing these new types of businesses. There are grey areas where traditional politics does not apply. As a result, the definition of Governance Platform Development has changed even further.
Compliance with existing regulations
Currently, no protocol defines the level of regulation that these platforms must meet in terms of security standards, taxes, compliance, protection of rights and interests, and fair competition. These platforms are so different from traditional business models that there is a grey area when it comes to applicable regulations. Especially concerning worker rights and labor law. Therefore, anyone who provides driving on either of the two platforms is technically not eligible for protection under certain rights. For these workers, this can have a serious impact on their well-being and socio-economic status.
Another important concern that Governance Platform Development needs to address is the credibility of the information received through the online media platform. These platforms have replaced traditional information filtering techniques like editors, researchers, trusted institutions with algorithms that provide little moderation and control of the content.
The key to longevity is to build trust with all users of mobile platforms about how technology pervades your daily lives and how you should function as a society. By being well aware that there is, or that users are at risk of losing too much effort.