The Boom of Online Marketplace

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Over the last few years, the service industry has continued to grow, this time online, via marketplaces. The rise in popularity and the number of marketplaces have skyrocketed creating a world of online possibility. Particularly, in service oriented sectors allowing for a new branch of e-commerce to emerge, that previously would have been unattainable. Platforms like Airbnb, and Uber have carved the way allowing for innovation and growth. Newer concepts like Deliveroo are set to influence and evolve the marketplace once again.

Go back 10 years and think about how outlandish the thought of jumping into a stranger’s car or staying in their home would be. Innovation has come a long way in these last 10 years out of necessity and with a clear vision these perceptions have changed, creating an exciting arena for service marketplaces.

One reason why these businesses work so effectively, is the lack of inventory needed to start their business. Neither Uber or Airbnb own their cars or rooms but both are considered to be leaders in their respected fields. The idea that you can create a business without the initial financial investment on inventory is interesting and is being utilised by the biggest companies in the world.

 

 

 

These businesses hold a mutual benefit for marketplaces and hosts alike. The supply of existing inventory to marketplaces and an additional income for those who host or drive, benefits all parties involved it makes use of resources that already exist. Airbnb hosts have a spare room or want to rent their house out whilst they’re away. Similarly, uber drivers have a car and some spare time. Marketplaces are providing a platform for individuals to make additional income with resources they already have.

It allows marketplaces to dive into a collaborative economy that is also mutually beneficial.  A look into the collaborative economy is interesting as it shifts the traditional concept of investing and has started to really make an influence. With participation of the community It will only continue to expand. The size of the collaborative economy is predicted to rise from $15 billion a couple of years ago to $335 billion by 2025.

The success stories of big platforms and the collaborative economy are exciting but there is one main pattern that weaves its way through. It’s the aspect that makes vertical marketplaces thrive in today’s online world. This factor is the ability to solve worldwide problems for customers by removing difficulties that were alive offline. It’s simple and may seem obvious but when applied effectively it allows for rampant growth.

The trends are clear and online marketplaces are developing at a rapid rate. For anyone who can adapt and get involved in marketplace platforms now is the time to start building and taking advantage.

CEO and Founder @nabooki_online serial entrepreneur and superdad.

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