Multi-sided Platform

A multi-sided platform is a type of online business network that connects different sides of the market (consumers, producers, service providers, distributors, etc.) to create a value proposition from which they can all benefit. The platform acts as an intermediary, connecting two separate groups of people, such as buyers and sellers, so that they can both benefit from the exchange of information, goods, or services. It is a great way for startups to quickly reach a wide range of users who are all looking for something different that can be addressed by a multifaceted platform.

A multi-sided platform is an online business model that brings together different sides of the market, allowing them to interact with each other in order to create added value and benefit from a shared platform. For example, a ride-sharing platform incorporates drivers, customers, and support teams from multiple cities around the world. They all share the platform to help make it easier to book rides and manage different accounts.

Multi-sided Platforms have traditionally been used in applications such as classifies, auction sites, dating sites, and digital content. Nowadays, they are used for a variety of new business models such as peer-to-peer marketplaces, digital media streaming, and many more. A successful multi-sided platform must provide an environment where both sides (the buyers and sellers) of the market can find value.

A great example of a multi-sided platform is Airbnb. Airbnb connects travelers with property owners who are willing to rent out their home or space for short-term visits. The platform acts as an intermediary between the two sides where travelers can find affordable accommodation and property owners have the opportunity to generate income by renting out their space. Airbnb provides an environment where both sides can benefit from a mutually shared platform.