A multi-sided market of personal data resource allocation: An empirical study of China’s car-hailing platform

Abstract

The current rapid development of online car-hailing services creates a serious challenge to the existing paradigm of market governance and antitrust policy. However, the debate on the market structure of the car-hailing platform requires more empirical evidence to uncover its functions. This research adopts an interdisciplinary methodology based on computer science and economics, and including software reverse engineering tools applied to the interoperability of the terminal application and resource allocation model, to demonstrate the topological market structure of personal data resources allocation in China’s car-hailing industry. Within the discussion of the hybrid nature of technology and economy, the analysis results clearly show that China’s car-hailing platform services present a multi-sided market structure when seen from the perspective of personal data resource allocation. Personal data resource (PDR), that is considered an essential market resource, is applied as an asset transferred unhindered between platforms via the application programming interface, and thus, creating a new market allocation mechanism. The connection between the car-hailing platforms and social media platforms is an essential aspect of the market competition in the domain. As applications of online platforms increase in the global context, this research offers a new perspective in personal data resource allocation with implications for the governance of the platform economy.