Platform Business Models: E-logistics Platforms in Sub-Saharan Africa

Abstract

AbstractTransaction digital platforms in sub-Saharan Africa exist across diverse verticals, addressing a plethora of market, resource and institutional constraints. With the growth of digital start-ups attracting venture capital and private equity funds, e-logistics platforms have yet to advance beyond seed and series A funding rounds to scale. Notwithstanding these developments, little is known about the dynamics and performance of platform businesses and their operational considerations on the continent. Using the platform business model (PBM) analysis and map, this chapter examines the platform design and ecosystem development of funded e-logistics platforms. The chapter sources data from public sources, identifying and profiling platform customers, the value units exchanged (physical, information and financial) and the ability to customer types attract (pull) other customer types (build network effects). By highlighting the similarities and differences of logistics platforms, the findings also show that even though the core interaction, a platform design and architecture component is homogeneous across industry platforms, ecosystem building strategies that differentiate platforms are unique to platform businesses. Though the chapter presents findings from an external perspective, the findings are insightful to current and prospective platform business owners. Apart from building the platform technologies for the core interaction, platform business owners should also focus on design strategies that will build and enhance the platform ecosystem (interactions and value to secondary platform participants).KeywordsDigital platformsE-logisticsPlatform business model