In this article, we explore platform cooperativism, the principles, the examples, the benefits, strategies to strengthen platform cooperativism and future.
Definition
Platform cooperativism refers to a model of digital platform ownership and governance that is democratically managed by its stakeholders, rather than by investors or venture capitalists. It is rooted in the cooperative movement, which prioritizes shared ownership, democratic control, and equitable distribution of value.
Principles of Platform Cooperativism
Platform cooperativism adapts the universal principles of cooperatives to the digital age, emphasizing democratic ownership and governance by stakeholders rather than shareholders.
Voluntary and Open Membership: The platform is open to all those who wish to use its goods or services, and membership is voluntary, not exclusive or discriminatory.
Democratic Member Control: Members (workers, users, or producers) democratically control the platform, often on a one-member, one-vote basis, as opposed to being controlled by a central authority or investors.
Member Economic Participation: Members control the economic capital of the cooperative and contribute to it. Profits and surpluses are then distributed among members based on their participation, rather than enriching outside investors.
Autonomy and Independence: Platform cooperatives are autonomous, self-help entities controlled by their members, rather than being controlled by external partners or external capital investors.
Education, Training, and Information: The platform provides education and training for its members to help them participate fully in the cooperative’s development and operation.
Cooperation Among Cooperatives: Platform cooperatives work together with other cooperatives to strengthen the movement and support shared goals.
Concern for Community: Platform cooperatives work for the sustainable development of their communities, striving for social responsibility and local benefit alongside economic success.
Beyond Core Principles: Additional Considerations
In addition to the foundational seven principles, platform cooperativism also emphasizes:
Transparency: Clear understanding of the platform’s algorithms and how user data is used.
Co-design: Involving all stakeholders in the design and creation of the platform from the start.
Fairer Earnings: Prioritizing workers’ income maximization and decent working conditions.
Worker-Owned Reputation Systems: Creating transparent, portable reputations built by workers, not opaque algorithms.
Examples of Platform Cooperatives
Driver’s Cooperative: A taxi service app in New York City where drivers own the platform, receive a larger share of trip earnings, and collectively decide on the rules of the platform.
Up & Go: A house-cleaning service where workers own the platform and keep a much larger portion of every dollar earned, with a small percentage going to platform maintenance.
Stocksy: A cooperative for photographers and videographers who co-own the platform and share in the sales of their work.
Resonate: A music streaming service where the producers of the music are co-owners of the platform.
Fairbnb: A cooperative platform for short-term rentals that prioritizes community engagement and offers an alternative to traditional platforms like Airbnb.
Co-op Ride: Another example of a driver-owned platform for taxi services.
Members Media: A platform for film producers who collectively own the platform for distributing their films.
How Platform Cooperatives Work
Worker Ownership: The core principle is that the workers who use the platform are also the owners of the platform.
Democratic Governance: Members have a say in how the platform is run, including decisions about wages, benefits, customer charges, and data handling.
Profit Sharing: Instead of profits going to external investors, they are distributed among the member-owners or reinvested into the cooperative.
Focus on Worker Well-being: The goal is to create a fair and sustainable digital economy that addresses the precarious conditions often faced by gig economy workers.
The Benefit of Platform Cooperativism:
Better Working Conditions: Platform cooperatives prioritize decent conditions, access to social protection, and enhanced job satisfaction.
Democratic Control: Members collectively manage the platform, making decisions about working hours, wages, and policies through democratic procedures instead of opaque algorithms.
Fairer Income: Surplus value generated by the platform is distributed among the worker-owners, rather than going to external shareholders.
Increased Motivation & Productivity: Workers involved in decision-making show lower absenteeism, less staff turnover, and higher productivity.
Stronger Bargaining Power: Isolated workers can join a cooperative to negotiate better conditions and exercise their rights collectively.
Benefits for Communities
Local Wealth-Building: Value generated by the cooperative remains within the community, as members typically use their income locally.
Support for Local Development: Cooperatives invest in local projects and infrastructure, and are deeply engaged with local communities, tailoring services to local needs.
Enhanced Local Collaboration: Platform co-ops facilitate connections between local actors, including public authorities and other social enterprises, fostering place-based solutions.
Ethical Technology & Transparency
Human-Centric Technology: Platforms are designed to streamline work and support self-entrepreneurship, not to replace human judgment with algorithms.
Transparent Data Use: Cooperative platforms use data transparently, providing clear data analysis and interpretation tools for members.
Focus on Social & Environmental Value: In addition to economic value, platform cooperatives focus on creating broader social and environmental benefits, aligning with sustainable development goals.
Strategies & Principles of Platform Cooperativism:
Collective Ownership and Democratic Governance: Unlike conventional platforms, platform co-ops are owned by their members (workers, producers, or users) and governed through democratic processes, giving them control over the platform’s operations and direction.
Worker-Centric Model: These platforms prioritize the well-being of their participants, aiming for fair wages, decent working conditions, access to social protection, and overall job satisfaction.
Decentralized Control of Technology and Data: Instead of algorithms controlling workers, platform co-ops feature collective decision-making regarding the platform’s technological aspects, data management, and algorithms, ensuring they serve the community’s needs.
Co-Design of the Platform: Members are actively involved in the design and creation of the platform, ensuring that the technology is built around their specific needs and capacities.
Shared Identity and Empowerment: A strong collective identity is cultivated around shared values of fairness and social justice, which empowers members to participate actively and contribute to the cooperative’s success.
Open-Source Development and Open Data: Platform co-ops often aspire to use and develop open-source technologies, allowing new platforms to build upon and share algorithmic foundations with others.
Strategies for Scaling and Support
Public Institution Support: Local and regional governments can promote platform co-ops through procurement policies that favor them, implementing solidarity-oriented loan programs, and providing fiscal advantages.
Incubators and Networks: Funding platform co-op incubators and creating networks where different cooperatives can collaborate, share resources, and exchange knowledge can help them grow and scale.
Second-Level Cooperatives: Local platform co-ops can form federations or second-level cooperatives (like CoopCycle, in the bike delivery sector) to pool resources for technology, marketing, and to facilitate replication in new locations.
The Future of Platform Cooperativism:
Technological Integration: Platform cooperatives can harness AI and blockchain to create user-owned data infrastructure and AI-powered platforms in sectors like healthcare, education, and transportation, benefiting members rather than corporations.
Policy and Legal Support: The future requires stronger public policies, including easier access to funding, supportive legal frameworks, and tax incentives to recognize and protect platform cooperatives.
Scalability and Sustainability: A major focus is on developing sustainable economic models and scaling up operations so they can compete with dominant platforms and expand their impact.
Global and Inclusive Movement: The movement aims to become more inclusive, diverse, and truly global, built on principles of social justice, anti-colonialism, and international cooperation.
Current Strengths and Opportunities
Improved Worker Conditions: They offer alternatives to exploitative gig economy platforms, promoting fair pay, ethical data management, and worker ownership.
Community Empowerment: Platform coops foster community-based entrepreneurship and strengthen solidarity between local communities and territories.
Resilience: These models have proven valuable in addressing crises, such as re-organizing local supply chains during the COVID-19 pandemic.
Ethical Business Models: They provide ethical alternatives to profit-driven digital platforms, emphasizing democratic governance and member well-being over data monetization.
Limited Access to Finance: A significant barrier is the lack of capital and financial resources needed to scale and develop their activities.
Constraining Legislative Frameworks: Existing policies often favor corporate interests, requiring new laws to support the unique cooperative model.
Capacity Building: There is a need for more opportunities and resources for training and capacity building for cooperative members and managers.
Awareness and Competition: Greater public awareness is needed to showcase their value, and they need to compete on a more level playing field with established, dominant platforms.
Conclusion
Platform cooperativism is a practical, forward-thinking alternative to the traditional digital economy. It promotes democratic ownership, equity, and ethical technology use, leading to a more just and sustainable future. Despite its current challenges, a growing interest from various stakeholders shows its potential to reshape how digital platforms benefit society.