Marketplace
A business that connects buyers and sellers and takes a cut of the transactions, rather than owning the inventory itself. Airbnb, Uber, and Etsy are marketplaces.
Why it matters
Marketplaces can scale with strong network effects and light assets, but they face the chicken-and-egg problem of needing both sides at once. Solving that cold-start, and setting the right take rate, is the core challenge.
For example
Urban Company connects customers with service professionals and takes a cut of each booking, without employing the professionals itself.
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Related terms
Also in Starting Up
See how founders actually handle this on Growing and marketing, part of the Starting Up hub.
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