4 September 2024

The digital present. Effective platform solutions for different economic sectors

Digital platforms are having a significant impact on the development of the urban environment, accelerating innovation and helping to improve quality of life. They are already impacting the Russian economy by creating opportunities for temporary employment and labour mobility. Stimulating the introduction of platform solutions into the urban economy will allow for faster implementation of the latest technologies and improve the quality of services. This was the conclusion reached by the participants of the session ‘The Digital Present. Effective Platform Solutions for Different Economic Sectors', which took place within the framework of the Eastern Economic Forum.

 

KEY CONCLUSIONS

 

Digital platforms push the boundaries of economic and business development opportunities

“What is the main advantage and characteristic of digital platforms? What can they help people with in general? We are removing the geographical and economic boundaries that previously existed. In fact, we provide any territory with access to goods, services, cars, real estate, if it is needed,” Vladislav Fedulov, Managing Director for Government Relations, Avito.

“I would venture to say that platform development is not a Russian phenomenon, but a global one. It is not the necessity or demand for platforms that needs to be discussed, the question is different: will we work with our own solutions or not with our own. <...> Platforms provide great opportunities for temporary employment. They more or less permanently employ [through online platforms, – Ed.] 3.5 million people, up to 5 million at the most. But many more people participate on a one-off basis or periodically with a small frequency, and this is an additional income for them, which is also very important,” Andrey Sharonov, Chairman of the Supervisory Board, Association of Digital Platforms.

“The peculiarity of platform solutions is that citizens interact with them regularly, directly, and most importantly, it forms a certain culture of consumption, a culture of everyday life. On the one hand, platform solutions change cities and bring digitalization. On the other hand, they completely change the consumer picture and familiar things. We even had a hypothesis that with the introduction of digital services in a certain mathematical pattern, the quality of life in a city where the most basic services appear automatically increases,” Andrey Samokhin, General Director, National PPP Center; Chief Executive Officer, VEB.RF. 

 

PROBLEMS

 

Weakness of the regulatory framework governing relations between digital platform participants

“Legislation [regulating relations between participants in digital platforms, – Ed.] is only just developing. <...> Therefore, relations are regulated spontaneously: by trial and error. We have seen outbursts of conflicts with the owners of order delivery points, with sellers who were dissatisfied with the disorderliness of the rules for changing the terms of trade, and so forth,” Andrey Sharonov, Chairman of the Supervisory Board, Association of Digital Platforms.

“So, it turns out over time that it is impossible to develop this market – it is very offline, complex and involves significant regulatory barriers, how cities see the development of not only the transport system, but also the labour market. We are increasingly moving into some kind of infrastructural function, not only in the sense that we provide transport connectivity, provide accessibility of transport, but also in the sense that we have to look at what surrounds us as part of our own decisions,” Anton Petrakov, Director for Government Relations, Yandex Taxi.

 

Risk of leakage of platform users’ personal data and increased volumes of counterfeit products

“There are potential risks of personal data leakage. More precisely, they are increased due to the fact that platforms concentrate a huge amount of such data. Another problem that is also being addressed is the high risks of counterfeiting. Precisely by virtue of the fact that platforms are not sellers, they do not have the ability, as traditional networks do, to check the quality of the goods and be responsible for them. And the last thing I would probably like to mention is that platforms create a large number of well-paid jobs. This is perceived negatively,” Andrey Sharonov, Chairman of the Supervisory Board, Association of Digital Platforms.

 

SOLUTIONS

 

Adjustment of legislation and regulation of labour relations

“Therefore, I believe that the same situation [similar to the development and promotion of creative industries after the adoption of the basic law on creative industries and measures to support them, – Ed.] can happen, and it should happen. [Two spheres must be affected, – Ed.]. Firstly, it is the sphere of competition, it is the adjustment of anti-monopoly legislation in the direction of inadmissibility of distortion between infrastructural solutions, platforms. <...> Secondly, it is the sphere of labour relations, <...> since the current model does not quite correctly form relations between the platform, its employees and entrepreneurs, according to the experts we rely on,” Denis Kravchenko, Deputy Chairman of the Committee of the State Duma of the Federal Assembly of the Russian Federation on Economic Policy.

“The concepts are important because we all speak a different language with different agencies and stakeholders. The issue of labour relations, platform employment, flexible employment, temporary employment is one of the priorities. As a business, we have a request for regulation to be formulated that will make it possible to solve some problematic issues in the way we see them and synchronize them with the government’s approaches,” Anton Petrakov, Director for Government Relations, Yandex Taxi.

 

** This is a translation of material that was originally generated in Russian using artificial intelligence.

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