Exploring how regulators face platform business issues in the lifecycle stages: Evidence of iranian ride-hailing platform business

The emergence of Platform Businesses (PBs) has caused a conflict between the traditional and new economic actors. Furthermore, it has escalated to government bodies with different beliefs and formed diverse coalitions, including among government bodies. Therefore, governments, given their regulatory and supportive roles, should be able to intervene at the right time with practical tools and trade off their internal conflicts. This paper uses an exploratory-abductive approach to identify the challenges of the regulation during the lifecycle of PBs, explores the conflicts of interest among economic actors, examines the government intervention in the economy, and explains the regulatory and supportive roles of the government. Data was collected through semi-structured interviews with PB experts, who have active roles in the regulatory process, and with well-known academics on the subject. Reviewing the pathways of PBs in Iran between 2014 and 2018, the paper suggests five propositions using regulation economics and advocacy coalition framework to develop the regulatory roles of government. The results demonstrate that PBs’ lifecycle, shifting from one-sided to two-sided market, moving from ownership to accessibility, and timing of intervention significantly support the development of Cognitive Tools, Regulation Frameworks, and Regulation Tools.