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: JCDecaux is working with public transport authorities or government entities to furnish a city’s streets and public spaces with furnishings (e.g. public benches) in return for obtaining advertising rights at these locations. These advertising spaces are then marketed to advertisers who are willing to pay for prime locations and transit media opportunities, while the respective city benefits from advertising design innovations and free or reduced-cost public services.
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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.
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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.
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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.
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How they do it: Salesforce offers different apps on its AppExchange platform. Customers of Salesforce may purchase access to apps published by third-parties. Thus, it can leverage a two-sided market, connecting its paying customers with paying third-party AppEchange publishers.
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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 5 firms using this pattern.
Top Industries
24% of firms using pattern
18% of firms using pattern
17% 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
15 pattern co-occurrences
9 pattern co-occurrences
8 pattern co-occurrences