Uber does not own or operate any of the cabs its riders use, but it has a valuation of $3.5B. Pinterest does not post any of the ‘Pins’ that refer 23% of all traffic to e-commerce sites. Vine does not create any videos, yet is the fastest growing app in the world.
This is a colossal shift from traditional business models, where a company creates a product or service and then sells it to its customers.
Some call this the sharing economy or the collaborative economy. Others refer to these businesses as marketplaces or networks. But the overarching term for all of these multisided business models is a “platform.”
Platform startups have been disrupting entire industries (like Facebook and WhatsApp with communication, Youtube with entertainment and Uber with transportation), or are innovating with the goal to disrupt and take over outdated industries (healthcare, insurance, manufacturing, finance and many more).
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Via David Christopher Bilas