Glovo or even Tinder

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As a guest, the platform is not providing you value, since the available offer is too limited and you do not have the option to compare prices, location, size, etc. The same would happen to you if you were the owner of a home. Imagine that you publish your apartment for rent but you quickly realize that there are hardly any users looking to book accommodation on that website/App. The platform in this case would not provide you value either , since you would be able to rent it very rarely, or even not at all.

The network effect occurs when you overcome that enormous  Cambodia Phone Number Data challenge of creating value and having a large number of registered users , since the more clients who register, the more value your platform provides, and the more value your platform provides, the more users register . The network effect applies to all platforms : think of Amazon, Blablacar,  The more users, the more value, and since they provide a lot of value, they permanently manage to attract new users .





Resources needed to create a marketplace Companies that know how to create a successful Marketplace As you can imagine, the resources needed by a platform are very different from those needed by a linear business. To understand it well, let's go back to the hotel example. Imagine that the Hilton chain wants to expand its portfolio. You can imagine what resources you would need to invest in, right? Mainly in real estate assets (hotels). On the other hand, what would Airbnb need to reach new markets? Just the platform.