Creating Shared Value in Platform Economies: The Social and Ethical Role of Ride-Hailing Platforms

Abstract

The rapid evolution of platform businesses in the digital economy has transformed traditional industries, leading to significant shifts in how value is created and distributed. This research explores the development of a new Creating Shared Value (CSV) theory tailored to the unique characteristics of platform businesses, with a focus on the ride‑hailing sector. While ride-hailing platforms have achieved substantial economic growth, their societal impact remains controversial, with concerns over labor practices, regulatory challenges, and environmental implications. This paper argues that a revised CSV theory is essential to guide platform businesses in balancing economic objectives with social responsibilities by integrating the dynamics of multi‑sided platforms, network effects, stakeholder engagement and changing people’s behaviour to improve social norms. A case study of the ride‑hailing service Careem is selected to observe the actual process and actions taken. The proposed theory emphasises the importance of co‑creating value with all stakeholders, including drivers, passengers, regulators and communities, to achieve sustainable business growth and societal benefits. Data from interviews, direct observation and publicly available company information were analysed through an explanation‑building technique. The findings contribute to theory and practice by offering a CSV framework adapted to platform business contexts and providing managerial and policy insights into how platform firms can promote positive social behaviour.

Keywords: Creating Shared Value (CSV), Platform Business, Ride-hailing, Social Norms, Co-creation, Careem, Behavioural Change

DOI: 10.54941/ahfe1006840