A multi-sided platform is a type of business model that connects two or more distinct groups of customers or users. These groups are often referred to as "sides" or "sides of the market." The platform provides a service or product that enables these groups to interact with each other, creating value for both sides. Examples of multi-sided platforms include marketplaces, social networks, and payment systems.
A multi-sided platform typically works by facilitating interactions between two or more groups of customers or users. For example, a marketplace connects buyers and sellers, while a social network connects friends and family members. The platform provides a service or product that enables these groups to interact with each other, creating value for both sides.
One of the key features of a multi-sided platform is that it creates a network effect. As more users join the platform, the value of the platform increases for all users. For example, a marketplace with more buyers and sellers will have more products and services available, making it more attractive to new buyers and sellers.
There are many examples of multi-sided platforms in the modern economy. Some of the most well-known examples include:
Multi-sided platforms offer several benefits for businesses and customers alike. Some of the key benefits include:
Multi-sided platforms are a powerful business model that can create value for both businesses and customers. By connecting different groups of customers, these platforms can increase efficiency, encourage innovation, and create network effects that benefit all users. As the modern economy becomes increasingly interconnected, multi-sided platforms are likely to become even more important in the years to come.