The Evolution of Managed Marketplaces

Going beyond discovery

To start, as an example, let’s take a look at all of Yelp’s local services categories in San Francisco:

source: https://www.yelp.com/c/sf/localservices

Principles of Online Managed Marketplaces

I have deliberately left out the local businesses (agencies) that can be found in each of these subcategories from the previous image, because software managed marketplaces offer scale (through software) and support (which boosts customer experience and confidence) in a fashion that local businesses most often cannot.

source: iTunes
source: https://www.rover.com/become-a-sitter/
source: https://www.slideshare.net/a16z/network-effects-59206938/36-How_did_Airbnb_achieve_its via Anu Hariharan

Provide More Value Through Software → Capture More Business

The transactional payment model isn’t an absolute by any means. There are

from https://www.airbnb.com/help/article/52/how-should-i-choose-my-listing-s-price
Demand “Shock Absorbers” by Jeremy Stanley, source: https://www.slideshare.net/dominodatalab/data-science-at-instacart-making-ondemand-profitable

Opportunities abound for Managed Marketplaces

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store