Platform Business Models
Platform business models are systems that connect different groups of users, typically producers and consumers, to facilitate transactions or interactions. These platforms create value by enabling users to share resources, information, or services, often leveraging technology to enhance efficiency. Examples include Uber, which connects drivers with passengers, and Airbnb, which links hosts with travelers.
In a platform model, the platform owner usually earns revenue through transaction fees, subscriptions, or advertising. This approach allows for scalability, as the platform can grow rapidly without needing to own the resources being exchanged. Successful platforms often benefit from network effects, where increased participation enhances the value for all users.