Governments have increased their collaboration with the private sector regarding public service delivery, and their propensities to do so are largely shaped by their own in-house capacities. In this article, we theorize and analyze whether governments with an extremely low or extremely high technological capacity are more likely to collaborate with third-party platforms in order to jointly provide digital services. We expect there to be a U-shaped relationship between the technological capacity of those governments and their public–private partnership choices. An empirical analysis of digital service delivery across 290 prefecture-level cities in China corroborates this hypothesis. These results deepen our understanding of the competing motivations that drive the public–private partnership process. Points for practitioners Public–private collaboration has been widely adopted to promote digital service delivery. This article confirms the U-shaped relationship between government technological capacity and public–private collaboration in digital service delivery at the city level. To encourage the collaboration, it is crucial to target governments with varying capacities, which seems to be easier in large cities with high administrative rank and that are overall technologically mature and in a competitive environment technologically.