Two-Sided Market
A two-sided market is an economic platform that connects two distinct user groups, typically consumers and providers, facilitating interactions between them. Examples include platforms like Uber, which connects drivers with passengers, or Airbnb, which links hosts with travelers. The value of the platform increases as more users from both sides join, creating a network effect.
In a two-sided market, each group benefits from the presence of the other. For instance, more drivers on Uber lead to shorter wait times for passengers, while more passengers attract more drivers. This interdependence is crucial for the platform's success and growth.