Most two-sided marketplaces fail, but Airbnb and Uber succeeded. The video explains why the model seems simple but rarely works, using these two companies as case studies of the exception rather than the rule.
A two sided marketplace is a business that connects two different groups of users. And you need to consider both of them if you want to make money. Because you make money by facilitating the transaction between them. Think about it. Uber connects riders with drivers. Airbnb connects hosts and guests. Seems like a simple, easy idea. Build a platform, attract both sides, take a cut, get rich. Right? Except it almost never works out that way. The businesses that you see, like the Airbnbs and the Ubers, are the acceptable option to the rule. For every success you see, there are thousands that are in the graveyard.
