Public transport and media innovation: a platform perspective

This research examines how public transport companies can innovate their business models by investigating how platform principles could be used to add value to their customers. Platform principles are basic concepts that explain general characteristics and practices of online platforms. The increased usage of online platforms has impacted various industries, disrupting existing business models and market structures. With respect to public transport and mobility in general, online platform are becoming the main access points to mobility while at the same time they also facilitate new forms of mobility and integrate these with existing types of transport. Within literature addressing online platforms, most studies focus on the question how platforms as external parties enter and affect existing markets. This research seeks to contribute to this literature by adopting the viewpoint of public transport companies within such existing market. Given the growing importance of online platforms in today’s society and their potential to rearrange the way mobility is organised, it is essential for public transport companies to reconsider their strategies. Instead of letting the entrance of external online platforms happen to them, how can public transport companies in the Netherlands strategically make use of platform principles to innovate their business models? To answer this question, semi-structured interviews were conducted with ten experts whose field of expertise relate to strategy in public transport. The findings reveal that application of platform principles by public transport companies has the potential to create a significant amount of added benefit for passengers. As public transport generally operates according to fixed routes and timetables, tailored communication and help on how such inflexible type of transportation fits one’s personal needs can truly add value. Where public transport companies typically tended to focus on efficiency of their operations, platform principles provide the means to shift towards a more passenger centred view and respond to increasing importance of platforms within the mobility sector. Furthermore, by applying platform principles, public transport companies can contribute to the organisation of integrated mobility services, which is often referred to as mobility-as-a-service (MaaS). Within such a system, public transport companies can aim for different strategic positions. This research identified several factors that are of significance in this strategic process.