Analysis of External Environmental Factors Which Affect the Development of Ride-sharing Platform Based on ISM model, Examples of DiDi

Abstract

The concept of “sharing economy” was first proposed jointly by American Marcos Felson and Joan Spence. They described a new way of life consumption with “collaborative consumption”. The main feature of sharing economy is individuals achieve point-to-point direct transactions of goods and services through third-party platforms [1]. However, the objective conditions at that time made it difficult to put into practice. With the development of network technology, it is possible to integrate offline idle goods or personal services and provide them to users at a lower price, and become a viable new business model. As a Ride-sharing platform, Uber has become the leading enterprise in the sharing economy, its successful experience is the learning target of other sharing economic platforms, and the business model is also representative in sharing economic industry. However, Uber naively believes that the leading business model and business methods in the US market can be seamlessly extended to other countries and regions, without paying attention to localization for the users, in China and even Southeast Asia, Uber suffered a huge defeat and was replaced by DiDi and Grab. As the largest ride-sharing platform in China, DiDi was pushed to the turmoil in the second half of 2018 due to security issues, two women were raped and killed by DiDi driver while riding, and the call to shut down DiDi was endless in China. In China, Ride-sharing Platform, from Uber to DiDi, from DiDi's strong development to the current endless call to shut down, what kind of key external environmental factors affect the development of the ride-sharing platform? This paper attempts to clarify the external environmental factors that affect the development of shared travel platforms, and use the ISM model to clarify their levels and relevance.