What is Frugal About Gig Platforms?
Anna Elias ( Erasmus Universiteit Rotterdam)
Erwin van Tuijl (TU Delft - Urban Studies)
Jasmin Hofman ( Erasmus Universiteit Rotterdam)
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Abstract
M-PESA is often cited as a landmark example of frugal innovation in the digital era. This fintech platform created an alternative banking infrastructure for people in informal economies who previously lacked access to formal banking. While M-PESA has significantly advanced financial inclusion, it has also been criticised for deepening inequalities between those who have and those who lack access, as well as enabling its operators to extract value from vulnerable users in informal settlements [i]. This case highlights an important nuance: frugal innovation should not only be understood as delivering low-cost and simple solutions, but through a more holistic lens that embeds social and political dimensions to actively tackle exclusion and inequality [ii]. This broader framing pushes us to critically examine how digital platforms do more than just lower entry barriers, they shape who ultimately benefits and who remains excluded. [...]