Economic impact assessment

Platform economics have a tendency to affect traditional industries and employment patterns in addition to their workers’ livelihoods. The rise of ride-hailing apps disrupted taxi industries worldwide, displacing workers who had invested in licenses and vehicles under different regulatory frameworks. Food delivery platforms changed restaurant economics and cooking jobs. These shifts redistribute economic value and risk, often concentrating profits with platforms while workers absorb income volatility and operational costs.

Product teams should analyze whether their platforms enable sustainable livelihoods, how changes affect vulnerable worker populations, and what happens when platforms dominate local markets. This assessment informs responsible design decisions that balance innovation with economic justice and helps identify when platform growth creates rather than solves economic problems.