Abstract
We explore the challenges that digital platform-based sharing economy ventures confront in establishing legitimacy for their business models by examining the dynamics that ensued when Uber Technologies deployed its ride-sharing business model in four U.S. cities. Uber entered each city to jump-start network effects by establishing cognitive legitimacy while deepening a sociopolitical legitimacy crisis that emerged due to mismatches between its business model and existing regulations. Operating between existing categories, Uber used a series of interrelated market and non-market strategies, which we label as liminal movement, to generate cognitive and sociopolitical legitimacy.
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