Ridesharing platform entry effects on ownership-based consumption in Indonesia

Ridesharing platforms are often discussed in connection with their positive environmental impact - an assumption rooted in the idea that access-based consumption reduces traditional vehicle ownership. However, evidence in support of this claim is inconsistent. The present paper maintains that the environmental impact of ridesharing platforms must be understood in terms of an interplay of access-based and ownership-based consumption mechanisms. The results of a multimethod investigation in the context of Indonesia show that the presence of informal motorcycle taxis at the time of initial platform entry led to an 'access-replaces-ownership' effect. At later entries, the limited availability of informal car taxis, coupled with the changing competitive ridesharing landscape, created an 'access-induced ownership' effect. Ridesharing platform entries thus at first had a positive environmental impact, but in later stages produced a negative overall environmental impact. The societal and practical implications of the findings for policy-makers oriented towards environmental sustainability are addressed.