5 Insights to Starting a Marketplace

To solve it, most successful marketplaces started by focusing on driving the supply, including Airbnb, Uber, and OpenTable. 5. Do it by hand. It’s not just a software product that a single user can download and get immediate value from, such as a note-taking app like Notion. It requires you to grow two separate sides, the demand, and supply. And until you have the right ratio and a good amount of liquidity, you’re faced with revenue challenges, as well as churn from lack of established user value.

What is the marketplace?
A marketplace connects people who want something (i.e demand), with people who have that thing to sell (i.e supply), and results with a financial transaction taking place. Marketplaces (like Airbnb, Uber, eBay, etc) don’t own any of the supply. The primary function is to create a safe environment, allowing the supply and demand side to efficiently transact with each other. It’s not just a software product that a single user can download and get immediate value from, such as a note-taking app like Notion. It requires you to grow two separate sides, the demand, and supply.

For which industries is it relevant?
And until you have the right ratio and a good amount of liquidity, you’re faced with revenue challenges, as well as churn from lack of established user value.Marketplaces (like Airbnb, Uber, eBay, etc) don’t own any of the supply. The primary function is to create a safe environment, allowing the supply and demand side to efficiently transact with each other.