Airbnb, Uber And Etsy Business Model

Airbnb, Uber and Etsy are all based on a simple model of two-sided online marketplace. All three companies provided a network between consumers and suppliers which solved the challenge and generated profits for these middle-men.

Airbnb founders started with their own house and their market research helped them understand the demand side and how to build a strong supply side of house owners that can be matched with the potential customers. They were creating an experience rather than just a product. Beautiful pictures, amazing description and providing apt services helped them portray their product in the best possible manner. Uber started as a need to provide better lifestyle experience to the people. Eventually they created a system that changed the way riders acquired private transportation. Uber created an experience that redefined what it meant to use a car service and their customers became their brand advocate. Talking about Etsy, yet another business created out of need for a marketplace for wood workers. They built an online platform but went offline to market their idea. Finding artisans in flea markets, exploring the craft shows and convincing influential artisans, Etsy was able to build a strong supply side/. This …show more content…
For example: Auto spare parts e-commerce in India is still at a very initial stage. The consumers are not ready to accept this trend and there is trust issue attached with buying products online. The fake parts menace also makes it difficult to build a strong brand in the market. There is no major player in the aftermarket to provide genuine parts at affordable cost. In addition, this, India is a developing economy with a number of regulatory changes that makes it hard for a new business to flourish properly. The logistic conditions make it difficult to transport products to different parts of India within specified