All Markets Are Not Created Equal: 10 Factors To Consider When Evaluating Digital Marketplaces - Above the Crowd
by Bill Gurley
added by Mo Shafieeha ยท updated 2y ago
All Markets Are Not Created Equal: 10 Factors To Consider When Evaluating Digital Marketplaces - Above the Crowd
- New Experience vs. the Status Quo. The best marketplaces don't just aggregate markets; they enhance them. OpenTable lets you search reservations across hundreds of restaurants in seconds. GrubHub lets you watch your food as it comes to your house.
- Economic Advantages vs. the Status Quo. Some marketplaces give companies a lot of economic advantages.
from All Markets Are Not Created Equal: 10 Factors To Consider When Evaluating Digital Marketplaces - Above the Crowd by Bill Gurley
Mo Shafieeha added 2y ago
- High Fragmentation. High fragmentation of buyers and suppliers is great for an online marketplace. The large airlines have wiped out the economics of online ticketing marketplaces. Neil Bhatnagar says that a highly concentrated supplier base greatly diminishes the chances of a successful online marketplace.
from All Markets Are Not Created Equal: 10 Factors To Consider When Evaluating Digital Marketplaces - Above the Crowd by Bill Gurley
Mo Shafieeha added 2y ago
- OpenTable, Yelp, Zillow, oDesk, GrubHub, UShip, and Uber are examples of successful online marketplaces. The smartphone has accelerated these opportunities.
from All Markets Are Not Created Equal: 10 Factors To Consider When Evaluating Digital Marketplaces - Above the Crowd by Bill Gurley
Mo Shafieeha added 2y ago
- Friction of Supplier Sign-Up. Supplier aggregation is the easy part. Aggregating demand early in a company's growth is much more difficult and crucial than supplier aggregation.
- Size of the Market Opportunity. The new online marketplace may not be able to cover large portions of certain industries. Some markets are not good candidates. Wit
... See morefrom All Markets Are Not Created Equal: 10 Factors To Consider When Evaluating Digital Marketplaces - Above the Crowd by Bill Gurley
Mo Shafieeha added 2y ago
- Opportunity for Technology to Add Value. Zillow gives homebuyers access to a lot of data that was previously kept in proprietary systems. Using Uber's system, you can use more cars, earn more fares per hour, and get a faster pickup. Facilitating work-flow helps participants do more, and increases switching costs.
from All Markets Are Not Created Equal: 10 Factors To Consider When Evaluating Digital Marketplaces - Above the Crowd by Bill Gurley
Mo Shafieeha added 2y ago