Opportunities for the Platform Economy across Thailand

The on-demand economy is characterized by digital marketplaces all linked via the platform, where consumers expect immediate gratification and service providers require precise location intelligence to meet their needs. In other words, you get what you want when you want it. Grab and AirBnB are notable examples of new services created by this on demand environment.

Innovation turns idea into reality

A few years ago, we saw the establishment of this new ecosystem which was a reflection of this new technology tapping into upward market trends in pilot and, eventually, at scale. The trends are structured around the idea of “people-centric smart spaces” - pulling technology and people closes together within a space and in this case, our smart phones. Nowadays, consumers face Multi-Experiences that adjust the digital user experiences through a multitude of interaction modalities - touch, gesture, voice and smart devices.

We are talking about the business model that has changed the way we live. The advent of ride-hailing business in Thailand has changed urban mobility and location data plays a major role in transforming today’s on-the-go lifestyle. The passenger’s journey starts with an initial booking process, sometimes at a point where they are not available on the map. Thailand is filled with many alleys. To solve the problem, the HERE platform has provided opportunities for these companies with its map content, APIs and mSDKs where passengers can now pinpoint or choose an exact location in the map and these data points are updated with AI and machine learning capability. Apart from GPS-enabled tracking systems, drivers will have the best route at the moment. Drivers and passengers are also on the same page as the route and navigation are shown on the apps via their mobile devices. The routing capabilities of the HERE products will ensure passengers and drivers reach their point of destination with the least hassles and the shortest route possible.

Technology is also bringing brand and shopping to life. In the booming e-commerce sector, delivery services form the backbone of success for e-commerce businesses. Consumers these days have very short attention span, so the quicker they receive the product, greater the gratification and more likely they will make repeat purchases. The stats from Capgemini research institute showed some interesting information of consumer perceptions toward delivery service as follows;

• 55% of consumers will switch to a competing brand if it offers a faster delivery service.
• 55% of consumer said that a two-hour delivery option would increase their loyalty.
• 73% of consumers said that receiving the delivery in a convenient time slot is more important than receiving it quickly.
• 55% of consumers are willing to deliver products to neighbors in their vicinity.

Thus, competition in today’s platform economy is measured mainly on speed, convenience and accuracy. Amazon has made a commitment to safely ensure a safe delivery to its customers within 30 minutes. Walmart has also provided same-day shipping. eCommerce giant in the region Lazada and Shopee have also followed in the footsteps piloting their delivery services towards speed and quality.

To meet today’s changing needs and make transport freedom a reality, companies leverage location data to improve customer experience. With new capabilities these days, logistics companies and on demand companies have the ability to optimize their routes by taking into considerations such variables like rain, traffic time and costs. Optimization of route these days are a lot easier when you have the right technology. Location intelligence creates new business opportunities across a myriad of industries, even crossing into the retail and advertising space.

The upcoming of 5G will heighten the hype

The location platform has the unique opportunity to increase resident mobility, optimize city infrastructure and service delivery, driving the future of cities. The arrival of the 5G networks will only create more opportunities and create a faster and more powerful influencer within the platform economy. The scale and reach of the 5G network will enable widespread, higher-speed, low-latency connectivity necessary for more precise positioning. The significant 5G benefits expected to be realized in the smart transportation sector include inter-vehicle data transfer and linking of vehicles and digital infrastructure to provide more precise data for traffic control systems.

The on-demand delivery encourages a digital lifestyle. The HERE Platform is a location-centric development environment that can be used across different vertical markets.  In a city, data is everywhere. Whether it's car sensor data, information on street furniture, or any number of other data points in a city, the Open Location Platform can ingest and process it to offer anyone from governments to third party developers an unprecedented level of insight. The HERE Platform is a Big Data analytics platform to its core.  Users can bring their data to the platform and will have access to high quality location data and services.