from #TheNTWKTalk “Why Marketplaces Fail?”
Do you want to know about failed marketplaces and what we can learn from them? Watch what Sameer Singh told to us:
Takeaways:
- One reason why marketplaces fail is due to network effects: if you enter a market where a competitor already has a very very strong network effect and you fail that's not because your model was flawed, it's because somebody else got to the market first
- Another reason is that the model itself didn’t work: disintermediation, where you're connecting supply and demand you're trying to take a commission but neither side feels like the marketplace has added enough value to pay that commission so they're incentivized to go around the market
- It’s very important to have high frequency and high transaction size
For more on this topic, follow Platform Economy and Business Ecosystems and access the full🎙🎙Recording Session on TheNTWKEvents Node
Comments