Multi-Sided Platforms
Multi-Sided Platforms (MSPs) are business models that connect two or more distinct user groups, facilitating interactions between them. Examples include Uber, which connects drivers and riders, and Airbnb, which links hosts with guests. These platforms create value by enabling exchanges that benefit all parties involved.
MSPs thrive on network effects, meaning that as more users join one side, the value increases for the other side. This can lead to a self-reinforcing cycle of growth. Successful MSPs often leverage technology to streamline interactions and enhance user experiences, making them essential in today's digital economy.