Unlocking the Social Value of Platform Cooperatives

_{Image Credit: Sabra (1966) by Franz Kline. Belem, Lisbon, Portugal. Image via Wikimedia Commons, Creative Commons Attribution 2.0}

Introduction

In today’s digital world, where companies like Amazon, Uber, and Airbnb dominate the landscape, a new model is starting to challenge the traditional ways of doing business. It’s called platform cooperativism, and it’s offering a different approach to ownership, governance, and how profits are shared. At its core, platform cooperativism is all about creating digital platforms that are owned and run by the people who use them – whether they’re workers, consumers, or both. Unlike the typical profit-driven companies that focus on keeping shareholders happy, platform cooperatives are built around generating social value. But what exactly does “social value” mean in this context, and how do these cooperatives make it happen? Based on my recent research of Co-constructing Cooperative Value Ecosystems: A Critical Realist Perspective with colleagues from Durham University and Edinburgh Napier University, this blog explores these questions, uncovering the key ways social value is created within digital platform cooperatives.

What is Social Value in Platform Cooperativism?

When we talk about social value in the context of platform cooperativism, we’re looking beyond the usual business metrics of profit and loss. Instead, social value covers a wide range of benefits that improve community wellbeing, strengthen social bonds, promote fairness, and support environmental sustainability. While corporate platforms might occasionally engage in socially responsible activities to boost their image or meet corporate social responsibility targets, platform cooperatives make social value central to their mission and daily operations.

Platform cooperatives aim to create what some call a “People’s Internet” – a digital space that’s not only democratically governed but also inclusive, fair, and in tune with the needs of both users and the broader community. This focus on social value is embedded in everything they do, from the design of their platforms to the rules they set and the ways they interact with their communities. In doing so, these cooperatives offer a more ethical and sustainable alternative to the mainstream digital economy, which is often criticized for widening inequalities, exploiting workers, and putting profits ahead of people.

Outcomes of Social Value Creation by Platform Cooperatives

Our research has highlighted three main outcomes from the social value created by platform cooperatives:

Strengthening Community Capacities

One of the biggest advantages of platform cooperatives is how they help build up local communities. Unlike traditional corporate platforms, which often use local resources without giving much back, platform cooperatives focus on boosting the economic, social, and technological strengths of the communities they serve.

Take rent subsidy programmes, for example. Many platform cooperatives offer financial relief to lower-income users, helping those who struggle with high living costs. This not only supports individuals in need but also helps to create a more stable and engaged user base. In addition, platform cooperatives frequently run skill-building workshops or set up local technology hubs, where members can learn important skills like digital literacy, coding, or how to govern cooperatives. These initiatives are not just about immediate benefits – they aim to build long-term resilience and self-sufficiency within the community. By providing people with the skills and knowledge to take part fully in the digital economy, platform cooperatives help reduce inequalities and open up more inclusive economic opportunities.

On top of that, these cooperatives often work together with public institutions and community organisations to create a support network for their members. For example, they might set up local tech centres or partner with universities to offer ongoing training and development. This cooperative approach ensures that the benefits of digital innovation are shared across the community, helping people to keep pace with the fast-changing digital world.

Federating Cooperative Ventures

Another key outcome is the way platform cooperatives join forces through strategic alliances and networks, a process known as federation. This federated approach is vital because it allows cooperatives to scale up and achieve a bigger impact than they could on their own.

By coming together, platform cooperatives can share resources, exchange best practices, and support each other’s growth. This collective effort not only makes each cooperative stronger but also boosts the overall resilience and sustainability of the cooperative movement. For example, cooperatives might collaborate on marketing campaigns, develop shared technology platforms, or even work together to negotiate better deals with suppliers and service providers. These partnerships help them compete more effectively with the larger, profit-driven platforms that dominate the digital economy.

What’s more, these federations often cross regional and national borders, creating global networks that expand the reach and influence of the cooperative movement. By working together, cooperatives are better positioned to advocate for policies and regulations that recognise their unique contributions to society. This collective voice not only strengthens their position but also helps to build a more resilient cooperative ecosystem, one that’s better equipped to handle economic challenges and market pressures.

Fostering Practices for Narrative Co-creation

The third major outcome is the way platform cooperatives foster practices for narrative co-creation. Unlike corporate platforms, where decisions are often made in a top-down and opaque manner, platform cooperatives focus on transparency, inclusivity, and giving members a voice in shaping the platform’s direction.

This approach makes governance not only transparent and inclusive but also responsive to the needs and goals of everyone involved. It creates a sense of shared ownership and purpose among members, which is key to the cooperative’s long-term success. By involving members in decision-making, platform cooperatives ensure their actions stay aligned with their social mission and remain accountable to the communities they serve.

Additionally, narrative co-creation helps to build a culture of trust and mutual respect within the cooperative. It encourages open dialogue, where members can share their concerns, reflect on their experiences, and contribute to the platform’s ongoing development. This process strengthens internal unity and makes it easier for the cooperative to attract new members who share its values and vision.

Generative Mechanisms Driving Social Value Creation

By applying a philosophical and methodological approach of critical realism, the study has also identified two key mechanisms that drive social value creation in platform cooperativism:

Collective Identity and Empowerment

The first mechanism is the development of a strong collective identity among the members of the cooperative. This shared identity is rooted in common values, goals, and a commitment to social justice and fairness. By building a sense of belonging and shared purpose, platform cooperatives give their members the power to actively participate in decision-making and contribute to the success of the cooperative.

But this goes beyond simple involvement – it’s about giving members real control over the direction and operations of the platform. By decentralising power and promoting democratic governance, platform cooperatives create a space where members feel valued and respected. This in turn encourages a more engaged and motivated membership, which is essential for the cooperative’s long-term success and impact.

Empowerment is also crucial for boosting the social value that these cooperatives create. When members feel empowered, they’re more likely to take initiative, innovate, and work together to solve problems. This not only strengthens the cooperative’s ability to deliver social value but also creates a positive cycle where empowered members drive further innovation and improvement.

Government-Community Symbiosis

The second mechanism is the close, mutually beneficial relationship between government bodies and community organisations. Platform cooperatives often thrive thanks to supportive policies and institutional frameworks that recognise their potential to tackle important social challenges and drive innovation.

This partnership with government offers platform cooperatives a number of advantages. It helps them navigate regulatory issues, secure funding and resources, and build credibility. In return, platform cooperatives contribute to the public good by promoting economic inclusion, social equity, and environmental sustainability. This relationship enhances the overall impact of platform cooperatives and creates a more favourable environment for their growth.

Moreover, this collaboration is essential for scaling up the operations of platform cooperatives. With government support, these cooperatives can extend their reach, bringing their innovative models to new communities and regions. This not only amplifies the social value they create but also helps to build a more inclusive and sustainable digital economy.

What’s Next for Platform Cooperatives?

The rise of platform cooperatives signals a bold reimagining of how digital platforms can operate—not just as profit-making machines but as powerful drivers of social change. As this research highlights, platform cooperatives don’t simply mimic corporate platforms with a cooperative twist; they represent a fundamentally different approach to creating value.

A key takeaway from this study is the importance of recognising the factors – like collective identity and collaboration with government bodies – that allow platform cooperatives to succeed and create social value. These aren’t just optional features; they are crucial for sustaining the cooperative model. As platform cooperatives continue to evolve, understanding and harnessing these factors will be essential for scaling their impact. This opens up exciting possibilities for innovation, from deeper integration with public policy to new ways of empowering marginalised communities through digital platforms.

Looking to the future, platform cooperatives offer a compelling alternative to the current digital landscape, but they also face significant challenges. Expanding the cooperative model without losing sight of its core values is a delicate balancing act, especially in a world where corporate platforms dominate the internet’s infrastructure. Moreover, as digital technologies advance – particularly with the rise of artificial intelligence, data-driven business models, and autonomous systems – platform cooperatives will need to adapt to these changes while continuing to put social value ahead of profit.

One exciting future direction is the potential for platform cooperatives to engage with emerging technologies. Could cooperatives harness AI or blockchain to benefit communities rather than corporations? Could we see a cooperative-owned data infrastructure, where communities have control over their data and benefit from its use? Or perhaps AI-powered platforms, owned and governed by their users, could transform industries like healthcare, education, and transport? These questions aren’t just theoretical – they highlight real opportunities for platform cooperatives to expand their influence and relevance in the digital economy of tomorrow.

Another important area is the role of public policy in supporting platform cooperatives. As this study shows, government support is vital for helping these cooperatives thrive. Yet, policies often favor corporate interests, leaving cooperatives at a disadvantage. In the future, stronger legal frameworks will be needed to recognize and protect the unique contributions of platform cooperatives. This could include policies that provide easier access to funding, reduce regulatory barriers, or offer tax incentives to encourage the growth of cooperative ventures.

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