Price Controls and Platform Ecosystem: A Comparative Analysis of Parking Applications between Beijing and London

Abstract

As a platform to improve the efficiency of matching supply and demand, parking applications once blossomed in many cities. However, some have achieved success while others quickly withered. By comparing the development of parking applications between Beijing and London, it is found that price controls are a key factor. Price controls include price limits and hourly limits. Flexible price or controlled duration facilitate platform sustainability, as these increase the supply side’s digital investment and willingness to access the platform, and also increase demanders’ willingness to use the platform. Meanwhile, flat and low pricing or no time limit will make the platform less attractive, since these reduce the supply and its mobility, and also discourage demanders from using the platform. This paper enriches the literature on the digital platform ecosystem and information systems (IS) and provides practical inspiration for urban parking management.