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Better, Cheaper, More Convenient

Rob Go

M arketplace businesses are the classic example of this because they disintermediate the supply chain and offer a more free exchange of products between buyers and sellers. These are markets where the broad market is very price sensitive, but the high end market is relatively price insensitive. An example of this is the market for wine.

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All GMV is not created equal

A Crowded Space

Weak marketplaces suffer from disintermediation, pricing pressure, and destructive competition. At oDesk, we started with a 50%+ take rate but quickly lowered that to 30% and then 10% as we became more self-service and also wanted to lock up the market and prevent any disintermediation. This comes back to the value of the match.