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Firehose #194: ⚖️ Operating leverage. ⚖️
n the last few years, we’ve seen a rise in the number of full-stack or managed marketplaces, or marketplaces that take on additional operational value-add in terms of intermediating the service delivery. While “Uber for X” models were well-suited to simple services, managed marketplaces evolved to better tackle services that were more complex, high... See more
What’s next for marketplace startups? Reinventing the $10 trillion service economy, that’s what. at andrewchen
But as technology shifts to the cloud, there’s a complementary shift happening in favor of opex over capex. Operating expenses bear the advantage of a pay-as-you-go model for services used with comparatively little to no up-front investment. Not only is this a greater value prop, as a business is getting exactly what it pays for, but it’s also a st
... See moreTien Tzuo • Subscribed: Why the Subscription Model Will Be Your Company's Future - and What to Do About It
On the cost side, the marginal cost of delivery plays an important role. Food delivery platforms work with very thin margins per order. Hence, route optimization and number of orders per route are important criteria.
Sangeet Paul Choudary • The economics of food delivery platforms
A fundamental decision facing all multisided platform businesses is choice of a price structure: How much should the platform vendor charge each side relative to the others? Since transactions involving some sides may have significant associated variable costs (the production and distribution costs of video game consoles, for instance), the most il
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