Fifty years ago, the future as depicted in science fiction novels and movies included cars that fly and airplanes that make interplanetary journeys. The current wave of revolutionary technological developments is transforming the future in ways that were not foreseen. For example, the travel industry has undergone a significant transformation in recent years. The traditional process of planning trips from travel magazines and catalogues, obtaining financial resources through waiting in a queue at the bank, purchasing plane tickets at a counter and waiting for hours at the airport for check-in has been replaced by digital platforms that can complete all these steps in a few minutes. These platforms have established their own economy and have rapidly displaced traditional business models. Currently, the platform economy is the prevailing norm, with widespread interest in becoming a part of it.

What is the Platform Economy, and Why is it Important

The platform economy can be defined as an economic system formed by intermediary digital platforms that facilitate user interaction, collaboration, and commercial relationships. The concept of platforms has a long history, dating back beyond the digital age. However, it reached a certain level beginning from the 1990s with the widespread adoption of the internet, marking the beginning of the transformation we now call the platform economy.

To gain a deeper understanding of the platform economy, it is essential to examine the key characteristics of this model in closer detail.

Intermediation

The platform economy is primarily an intermediation-based economic model. Platforms facilitate connections between users and product and service providers, enabling seamless and often automated relationships and processes.

Network Effect

The network effect is based on the premise that an increase in the number of users on a platform will result in a corresponding increase in the maximum benefit that each user will receive.

Scalability

Scalability is a key advantage of digital platforms. Digital platforms can be scaled up rapidly with significantly lower overhead costs than traditional businesses.

Data-driven

Users provide their data to digital platforms, which are subject to various legal regulations. The data is then processed by the platform and used to deliver personalized experiences to the user.

The platform business model fosters entrepreneurship, stimulates rapid economic growth, and creates employment opportunities. Digital platforms, which have minimal or no dependence on location, facilitate the establishment of new economic relations between countries as they are globally accessible. By reducing the cost of transactions, digital platforms enhance efficiency. The platform business model forces traditional business models to adapt due to the competition it creates and contributes to the emergence of disruptive innovations.

How the Platform Economy is Transforming Industries

As previously stated, the platform business model has been pivotal in driving transformation across numerous industries. It has compelled traditional business models and business practices to evolve through disruptive innovations.

Retail and E-Commerce

Digital platforms such as Amazon and Alibaba have transformed consumer behavior by offering a vast selection of products, convenience, and customer-centric solutions.

Transportation

Ride-hailing platforms such as Uber and Lyft have emerged as a formidable competitor to traditional taxis, largely due to their disruptive innovations. Furthermore, these platforms utilize AI to calculate optimal routes, enable users to share location information with loved ones for enhanced safety, and provide users with the option to select their drivers based on user reviews.

Istanbul's Public Transportation Services in a Single Application

With a population of over 16 million, Istanbul is a megacity where municipal services are delivered to citizens through subsidiaries of the Istanbul Metropolitan Municipality. These services, which were previously distributed through various websites and applications, have been consolidated in Istanbul Senin, a city SuperApp developed by KOBIL and the first of its kind worldwide.

Additionally, the Istanbul Senin super app offers users the ability to make transactions related to all land, sea, and rail transportation services provided by the Istanbul Metropolitan Municipality. The application allows citizens to store their cards in a secure digital wallet and make all transportation payments through this wallet. Citizens can also save time by tracking when public transportation vehicles will reach certain stops through Istanbul Senin.

In the future, the electric vehicle charging station mini application of Spark, an EV mobility initiative, will also be integrated into Istanbul Senin. This will allow citizens living in Istanbul to access Spark services through a single application.

Banking

The banking sector is rapidly adapting to the platform economy by adopting the Banking-as-a-Service (BaaS) model. Banks such as Revolut and Chime are disrupting traditional banking and offering branchless and decentralized banking services. These services reduce the cost of business transactions, enable peer-to-peer commercial relationships, and allow users to utilize their savings through the investment products they offer.

How to Start a Platform-Based Business

The platform business model is an attractive proposition for many entrepreneurs, offering a cost-effective means of entering new lines of business compared to traditional business models. Those who wish to establish their own startup in the platform economy must be prepared to face a series of challenges.

The first step is to identify a niche. Prioritize the provision of enabling solutions to particular issues by closely monitoring consumer needs. It is essential to construct a compelling value proposition. Identify the benefits of the platform, the areas where it saves users time and money, and construct a value proposition that demonstrates to users why they should use your platform.

It is essential to bring together sufficient financial and human resources to develop a minimum viable product (MVP) level platform.
It is crucial to ensure that it is user-friendly, robust, and stable. Use the data you collect from your users to provide them with more personalized experiences. Allocate the requisite resources and implement the necessary measures to guarantee the safety of your users.

How to Start a Platform-Based Business

Once you have identified your niche, KOBIL can help you develop your platform, process data, and guarantee security. Boyd Myers has indicated that the initial cost of developing an MVP-level platform ranges from $25,000 to $50,000 USD.[1] For a secure SuperApp, these costs and risks are even higher. The KOBIL Secure SuperApp Platform provides the tools necessary to develop a product offering multiple services to users simultaneously, requiring minimal or no coding. The platform enables rapid processing of user data in a centralized platform and the creation of tailored experiences through its robust analytical tools. Its 14-layer patented security system ensures the protection of user data, allowing for uninterrupted and efficient service delivery.

The platform economy is a rapidly growing economic model that is radically changing the way we do business. There are numerous ways to participate in this new business landscape. One option is to create niche solutions to users' specific problems. Another is to leverage a platform like KOBIL's Secure SuperApp Platform, which can help reduce product development costs and save time

About KOBIL

KOBIL is a global technology company focusing on secure digital identity and all-in-one multi-sided platform technologies. Since 1986, as a trusted Identity partner, KOBIL has been playing a vital role in the development of new encryption standards for identity-first security and regulatory-compliant solutions. Offering cutting-edge solutions for application shielding, user authentication, transaction authorization, and more, KOBIL is a market pioneer in digital identity and mobile security management. With over 500 employees worldwide, KOBIL is trusted by 5000+ stakeholders from banks to SMEs and start-ups, including the world's largest and most trusted organizations like the German Government,Raiffeisen, Erste, ING, Airbus,DATEV, Migrosand Siemens. KOBIL's recent innovation uniting all identity talents within a SuperApp platform highlight its commitment to compliance and innovation. KOBIL GmbH is the most visionary and market-leading provider of secure data technology solutions, with over 100+ million end users benefiting from its solutions. It operates in five headquarters—Germany, Switzerland, Turkey, the USA, and the UK—providing future-proofed projects and tech solutions across the world.