Subsidising network effects: the case of carpooling in France

Antoine Verhulst

Chapter 8 in Handbook of Platform Urbanism, 2025, pp 98-113 from Edward Elgar Publishing

Abstract: This chapter describes the growth of carpooling platforms in urban areas following the introduction of subsidy schemes by local authorities. This setup represents a case of platform urbanism in three aspects: public support, data sharing and territorial configuration. Although public support increases activity in many areas, it is too early to say whether it has efficiently created sustainable marketplaces. Moreover, as the platforms retain technical expertise in the data processes that validate the subsidies, the leadership of the public authorities remains limited. Finally, the subsidy system increases the dependency between platforms and territories, in particular through the parameters of the subsidy campaigns. More research is needed to understand the optimal level of subsidy, the right type of governance of subsidy campaigns and how they can best meet the needs of a territory.

Keywords: Platform; Network effects; Subsidies; Carpooling; Public-private partnerships; Data sharing (search for similar items in EconPapers)
Date: 2025
ISBN: 9781035313754
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