Every startup in Silicon Valley wants to be the next Facebook, with its one billion users, or LinkedIn, which just sold to Microsoft for $26 billion. And why not? Their business model is a beautiful thing: platforms (also known as two- or multi-sided markets) are asset-light and make money by sitting between different parties, controlling the market and taking a piece of every transaction. Consider Care.com, which connects parents and babysitters who would otherwise have trouble finding one another, and just as importantly, ensuring the reliability of the other party. If Care.com’s owners earn a hefty commission, they’re doing so by making the world a better place, one babysitter match at a time.
The Internet of “Stuff Your Mom Won’t Do for You Anymore”
Why a dry-cleaning app will never make money.
July 26, 2016
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New!
HBR Learning
Strategy Planning and Execution Course
Accelerate your career with Harvard ManageMentor®. HBR Learning’s online leadership training helps you hone your skills with courses like Strategy Planning and Execution. Earn badges to share on LinkedIn and your resume. Access more than 40 courses trusted by Fortune 500 companies.
How to develop a winning strategy—and put it to work.