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Two-sided Market 52#
A two-sided market facilitates interactions between multiple interdependent groups of customers. The value of the platform increases as more groups or as more individual members of each group are using it. The two sides usually come from disparate groups, e.g., businesses and private interest groups.
Examples: Iconic Cases
How they do it: Craigslist works as a two-sided market offering people to offer and search for various services and goods. The market participants can be both businesses as well as private individuals.
Learn more about Craigslist →
How they do it: American Express facilitates interactions between two groups of clients, namely the vendors (businesses accepting credit card payments) as well as the end customers (customers purchasing goods and services with their credit card).
Learn more about American Express →
How they do it: Especially the hiring functions in LinkedIn function as a two-sided market. The value for both recruiters and candidates increase with the amount of jobs and candidates on the platform.
Learn more about LinkedIn →
How they do it: Google’s search engine operates as a two-sided market, connecting websites and users who search for websites. Google does not provide any content but utilizes data to make sure that users with a specific search query find the website which can best answer their need / search. It also utilizes the data to allow website owners to target the user’s they want to attract on their websites.
Learn more about Google →
How they do it: In Payback’s case the two groups of customers in the two-sided market a the private consumers and members of the loyalty program and the vendors who reward their customers purchases. Payback itself has access to the individual customer data and can earn money from the businesses participating in their program.
Learn more about Payback →
Below, the top industries for the pattern "Two-sided Market" are displayed, in order to get insights into how this pattern is applied across different industries. We've collected data from 18 firms using this pattern.
Top Industries
Information Technology
33% of firms using pattern
33% of firms using pattern
Services
32% of firms using pattern
32% of firms using pattern
Hardware
25% of firms using pattern
25% of firms using pattern
All Industries
Below, the pattern "Two-sided Market" is analyzed based on co-occurrence, in order to get insights into how this business model pattern is applied in combination with other patterns within the firms we studied.
Top Co-Occurrences
Leverage Customer Data
10 pattern co-occurrences
10 pattern co-occurrences
Digitization
7 pattern co-occurrences
7 pattern co-occurrences
Long Tail
6 pattern co-occurrences
6 pattern co-occurrences