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Winning Strategies for Service Marketplaces
2. Market Structure "Market structure" also matters, as does market size. Airbnb's success was attributed to releasing a new market of inventory for travelers tired of paying too much for hotels. Less than 10% of Public Storage's $2.4 billion in sales are controlled. After a year in the market, MakeSpace's biggest issue was CAC (customer acquisitio... See more
Mark Suster • How to Decrease the Odds That Your Startup Fails
The more entrenched and competitive the market, the more valuable a wedge will be.
Lenny Rachitsky • Picking a Wedge - By Lenny Rachitsky - Lenny's Newsletter
The research points to two ways to constrain a marketplace: (1) by geography, and (2) by category. If the offering requires supply and demand to be in the same physical location, the constraint is always geographical (e.g. a limited set of markets). Otherwise, it’s category-based (e.g. handmade goods).
Lenny Rachitsky • How to Kickstart and Scale a Marketplace Business
Services can be lucrative, particularly if the skills required to provide them are rare and difficult to develop, but the trade-off is that they’re difficult to duplicate.