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But does the platform necessarily need to profit from every transaction? Consider a real estate website: They don't get a cut of the monthly rent, they just ch
by jakobegger 9y ago
But does the platform necessarily need to profit from every transaction?
Consider a real estate website: They don't get a cut of the monthly rent, they just charge a single fee up front.
The value that these platforms provide is connecting customers with service providers, and this is what should be charged for. The value of the platform goes to zero as soon as the customer/provider know each other.
So here's an idea: maybe the platform should charge only for the first appointment? Sure, revenue per customer is lower, but retention is bigger -- people keep using your service, and next time they need someone on short notice, they will use your website again.
If you run a marketplace, you need to make sure your business model is aligned with your users. If it isn't, you'll fight an uphill battle.