Value propositions and business model dynamics : a multiple case study of on-demand home service platforms in Finland and Europe

Abstract

This thesis investigates the evolving dynamics of value propositions and business models within the on-demand home service platform industry in Finland and Europe. The primary objective is to analyse the building blocks employed by successful platform owners to develop winning home service concepts. Traditional ways of booking home services are still prevalent, however, there is a curiosity and upsurge of concepts that have pinpointed a loophole in the orthodox system through which a new and more systematic and seamless approach has been adopted. This thesis contributes to the understanding of platform economies, offering practical recommendations for entrepreneurs and SMEs looking to enhance their digital transformation efforts and succeed in the growing competitive landscape of on-demand home services.

The study uses an explorative multiple case study approach, focusing on selected platform companies and their operational attributes. Through semi-structured interviews and qualitative coding, the research seeks to uncover intrinsic details about the processes used to create successful value propositions.

Key results indicate that successful home service platforms leverage technological innovations, flexible scheduling, and automated matching systems to provide high quality, convenient services with minimal transaction costs. The study highlights the importance of customer experience, the role of legal and regulatory frameworks, and the potential for platform-based business models to scale efficiently by utilizing network effects and cocreation of value.