Different design traditions address the design of services. When adopted alone, they can limit design, especially if services systems are complex. Some combinations among service design traditions are theorized in the literature and a cultural synthesis is considered a priority. This paper discusses a practical application of that synthesis: systematic/data-driven methods from engineering and service innovation are applied within a participatory and transformative environment. Intangible versus material and functional versus experience service elements are considered. The case study on urban markets shows that economics and the transactional/functional mechanics of a service system must be understood for proper design actions, and that overcoming separations between strands of literature is necessary to achieve this aim. Moreover, since urban markets are two-sided platforms in a physical setting, the study allows easier investigation than in modern digital platforms regarding how platform economics affect the design of a service system, providing insights for digital services as well. Originality is due to generally scant contributions on urban market design, since markets are often regulated, rather than designed, beyond the rare practical attempts of cultural synthesis.