Abstract
Abstract Online collaborative consumption (OCC) models, such as Uber and Airbnb, have emerged as popular peer-to-peer platforms in the sharing economy. Our study investigates whether the adoption of a leading ride-hailing platform, Didi Chuxing, increases or decreases new car sales shortly after the platform’s entries across 51 cities in China. Our empirical results suggest that the initial entry of a dominant ride-hailing company like Didi Chuxing, positively impacts new car sales in the short run. However, we suspect that this positive effect will be transitory. Platform competition and country-specific characteristics may also influence the new car market dynamics. Future works are needed to investigate whether some of the previous findings based on traditional two-sided markets can be generalized to online collaborative consumption platforms.
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