The double-edged sword of co-creation in the ride-hailing economy

Purpose This paper applies service-dominant logic (SDL) to labor–capital relationships to explore how service drivers' perceived value is shaped in the presence of customer participation, under working conditions such as control and conflict in algorithm management. It analyzes the dark aspects of value co-creation generated in platform-mediated services. Design/methodology/approach This research adopts a qualitative research design using a methodological triangulation based on two different sources. Content analysis on the largest Facebook pages and groups of Uber and Careem, as well as qualitative in-depth interviews with gig drivers in Egypt, are employed. Thematic analysis is used to recognize, analyze and report patterns within the data. Findings The results show that most ride-hailing participants experience value destruction as a result of a negative experience of value co-creation. Six themes have been emerged, outlining the negative effects of co-creating value in ride-hailing platforms. Consequently, several strategies have been proposed for ride-hailing companies to find a balance between the obscure and secure aspects of customer participation in their processes. Originality/value This study offers a different perspective on value co-creation by shifting the focus from its predominantly positive framing to its negative and conflictual dynamics from the service provider's viewpoint. Through the integration of SDL and the new era of algorithmic management, this study extends our theoretical knowledge and offers a deeper perspective on value creation within platform-enabled service ecosystems. Further, this study contributes to broadening the contextual scope of research on algorithmic management by focusing on Egypt as a developing country.