"An online platform is a digital service that facilitates interactions between two or more distinct but interdependent sets of users (whether firms or individuals) who interact through the service via the Internet. “ (OECD, 2019)
Digital platforms support so many of our daily activities that they are transforming how we work, play and create economic value. We use them for purchase of goods and services, transportation, payments, news and entertainment consumption, jobs and employees searches, and so much more.
With the rise of digital platforms, new business models have proliferated across the world, and Southeast Asia (SEA) is no exception. In the region, we have seen several home-grown digital platforms use technology in their main business models to remove transactional friction in the consumption of both digital and offline goods and services. Many of the largest home-grown Southeast Asia platforms are online-to-offline (O2O) in nature, facilitating transactions with both an online and offline component. They are very different from information platforms in that O2O platforms (“Platforms”) require both physical and digital infrastructure to function. These Platforms cut across several sectors, ranging from e-commerce and ride-hailing, to logistics and digital financial services.
The O2O Platform Economy (“Platform Economy”), which consists of economic and social activity between users that are facilitated by these Platforms, has become a frequent topic of discussion across many policy areas, including its role in the digitalization of the economy, labor and employment, competition, consumer protection and privacy, among other topics. Given the fast-evolving nature of Platforms, they can be more complex than they appear on the surface, and are not always well understood. To support constructive and balanced policy discussions around Platforms and the Platform Economy in Southeast Asia, the Tech for Good Institute has commissioned this report as its first publication, with the intent to provide a broad introduction on this topic and set the stage for further work, such as diving deeper into the challenges and issues in supporting the Platform Economy in Southeast Asia.
Online-to-offline (O2O) platforms (“Platforms”) facilitate transactions among users with both online and offline components (e.g. online purchase of physical goods that are then delivered offline). These Platforms are unique in which they require both physical and digital infrastructure to function.
The O2O Platform Economy (“Platform Economy”), which consists of economic and social activities between users that are facilitated by these Platforms, has become a frequent topic of discussion across Southeast Asia (“SEA”) in many policy areas, including their role in the digitalization of the economy, labor and employment, competition, consumer protection and privacy, among other topics. Given the fast-evolving nature of Platforms, they can be more complex than they appear on the surface and are not always well understood.
To support the policy discussions on Platforms in SEA, Tech for Good Institute has commissioned this report as its first publication with an intention to provide a broad introduction on this topic. In doing so, this report will also set the stage for further work, including subsequent deep-dives into challenges and issues in supporting the Platform Economy in SEA, that will not be covered in detail here.
The Tech for Good Institute
is a think tank committed to nurturing the positive impact of technology, to harness its full potential to uplift lives in Southeast Asia. It is a non-profit founded by Grab, Southeast Asia’s leading superapp. The Institute seeks to create dialogue to foster common ground on the impact of technology on society and policy. It supports action-based, insights-oriented research that demonstrates how technology addresses social concerns. It also serves as a platform to enhance capabilities that facilitate the understanding of technology’s impact in Southeast Asia. We believe this exchange of ideas and research is invaluable to the growth and development of technology in Southeast Asia, and the region itself.
Bain & Company
is a global consultancy that helps the world’s most ambitious change makers define the future. Across 61 offices in 38 countries, we work alongside our clients as one team with a shared ambition to achieve extraordinary results, outperform the competition, and redefine industries. We complement our tailored, integrated expertise with a vibrant ecosystem of digital innovators to deliver better, faster, and more enduring outcomes. Our 10-year commitment to invest more than $1 billion in pro bono services brings our talent, expertise, and insight to organizations tackling today’s urgent challenges in education, racial equity, social justice, economic development, and the environment. We earned a gold rating from EcoVadis, the leading platform for environmental, social, and ethical performance ratings for global supply chains, putting us in the top 2% among other consulting firms. Since our founding in 1973, we have measured our success by the success of our clients, and we proudly maintain the highest level of client advocacy in the industry.