Abstract for: Best Long-Term Strategy under Competitive Conditions of Asset-Light and Asset-Heavy Ride-Hailing Business Models

Uber and Lyft have recently become profitable by following dominance-based strategies, innvesting heavily in growth to achieve market leadership. However, their financial stability remains fragile, as price-sensitive customers and high competition challenge the sustainability of their strategies. This study aims to identify long-term strategies for sustained profitability and to assess how market position affects strategic success for asset-light Multi-Sided Platform Providers (MSPPs) and asset-heavy One-Sided Platform Providers (OSPPs) under competitive conditions. To achieve our research objective, we developed System Dynamics models for MSPPs and OSPPs to (1) simulate and optimize strategy development from market launch to saturation under competitive and non-competitive conditions, and (2) examine how a provider’s market position affects the performance and robustness of strategic choices when facing competitors. The models account for customer and driver behavior, platform dynamics, and structural differences between MSPP and OSPP business models. Preliminary results suggest that MSPPs benefit from an initial rapid growth to leverage net-work effects, followed by a shift toward profit focus. Under competition, this growth phase must be extended, increasing the risk of price wars. For OSPPs, a moderate growth strategy balancing expansion and efficiency performs best. Weaker network effects make them more vulnerable in competitive settings, requiring longer growth phases and delaying the transition to profitability. The initial findings show the need for business model-specific strategies: while MSPPs can scale quickly and shift to profitability, OSPPs require more cautious growth and longer investment horizons to remain competitive without compromising service quality or efficiency. Proof-Reading, Improving Writing