Abstract
PurposeThe purpose of this article is to study what platform-related user factors influence the employment potential of a lean platform for self-employed professionals.Design/methodology/approachThe article employs the system data of a Dutch platform firm, which include consumers looking for painters (N = 17,224) and self-employed painters (N = 1,752) who pursue client acquisition by submitting proposals (N = 101,974). This data is analysed using non-parametric tests.FindingsStudy of this platform shows that the platform functions as a channel of acquisition for self-employed professionals. This lean platform enables matching of information of supply and demand, thereby facilitating processes of acquisition. The number of competitors, distance to a potential job and non-standard proposals are statistically significant factors that influence whether a consumer is interested in a proposal. Effect sizes are very small.Research limitations/implicationsThis platform is a two-way market for information about service jobs, which excludes a price setting mechanism. The findings of this study cannot be generalized to other forms of platforms.Practical implicationsThe market for service professionals is very local; therefore, the platform firm may alter the algorithm to accommodate this. Self-employed professionals should approach using the platform in the same way as normal forms of acquisition.Social implicationsThis particular type of two-sided market is an extension of regular forms of acquisition by creating “weak ties” through the platform.Originality/valueThe article uses a unique data set to study the impact and limitations of digitalization of the (labour) market for service professionals.
Highlights
Since the beginning of the 2000s, the so-called platform economy has emerged
In this study, the employment potential of the platform for self-employed painters has been defined as a status change from “approved” to “mutual interest”
In theory the employment potential is quite big, because the platform enables a demand-driven form of customer acquisition
Summary
Since the beginning of the 2000s, the so-called platform economy has emerged. It has found application in many fields, from transportation (Uber and Lyft) to translation (Lionbridge) to microtasks, such as with Amazon’s Mechanical Turk. More demanding work can be performed through platforms such as Upwork. The precise employment status of platform workers is often an issue of contention, in some cases platforms function as a kind of marketplace where self-employed professionals can apply for tasks or jobs. The full terms of this licence may be seen at http:// creativecommons.org/licences/by/4.0/legalcode
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