Market Expanding or Market Stealing? Platform Competition in Bike-Sharing [report]

Guangyu Cao, Ginger Zhe Jin, Li-An Zhou
2018 unpublished
Using staggered entry of two dockless bikesharing firms, we find the entrant expands the market for the incumbent. The entry helps the incumbent to serve a greater number of trips, make more bike investment, achieve higher revenue per trip, improve bike utilization rate, and form a wider and more evenly distributed network. The market expansion effect on new users dominates a significant marketstealing effect on old users. These findings, together with a theoretical model that highlights
more » ... r search and network effects, suggest that a market with positive network effects is not necessarily winnertakesall, especially when users multihome across compatible networks.
doi:10.3386/w24938 fatcat:sxzxir52dvdybmafkxxzfa5pke