The platformization of small ride-hailing companies: between technical rationality and local demands

Abstract

This article presents partial results of an ongoing study on the platformization of the economy, focusing on the app-based transportation sector in the municipalities of Ouro Preto and Diamantina, in the state of Minas Gerais, Brazil. The study is grounded in the understanding that platformization constitutes a defining process of the contemporary geographical milieu, intensified by the widespread diffusion of information technologies. In this context, the study examines the emergence of locally based digital platforms, a phenomenon referred to here as the “platformization of the small.” Although these platforms operate at the local scale, they depend on software licensed from national firms, thereby reflecting an informational division of labor. Methodologically, the research draws on fieldwork involving open-ended and semi-structured interviews with platform managers and users, as well as documentary research. The findings provide a mapping of the development of the phenomenon, highlighting the cities under study and demonstrate how small economic agents adapt to the imperatives of platformization. The article concludes that these firms mimic the practices of the sector’s big tech companies while also creating activities shaped by local conditions.