…ve many technical marketplace challenges themselves, but those solutions are now being productized. Technologies like Stripe for payments, Checkr for background checks, and Lob for address verification will only make it easier to create new marketplaces.
Every marketplace should strive to drive higher-frequency usage, particularly in the early days. Sometimes the way to do that is to actually aid the supply side in lowering their transaction size so that the product becomes more compelling for the demand side. Liquidity is key. Making sure that transaction volume is thriving is more important to a new marketplace than getting the largest revenue per transaction.
…siderable amount of money. That makes the unit economics of Airbnb’s business model work. Moreover, the nature of travel exposed Airbnb to a large national and international audience, allowing it to thrive even though the number of transactions per user is low.