What are the Key Components of a Platform Business?
A successful platform business typically has the following key components:
Core Interaction: The primary value-creating interaction between different user groups. For example, in Airbnb, the core interaction is between hosts and guests. Participants: The users who interact on the platform, typically divided into producers and consumers. Value Unit: The unit of value that is exchanged between participants. In Uber, this would be a ride. Filters and Matching Mechanisms: Tools to help users find the right matches for their needs, such as search algorithms and recommendation engines. Governance: Rules and standards to ensure trust and safety among participants.