Remove Customer Remove Disintermediation Remove Matching Remove Vertical
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All GMV is not created equal

A Crowded Space

Weak marketplaces suffer from disintermediation, pricing pressure, and destructive competition. These factors tend to revolve around the type, size, quality, and frequency of matching that happens in a marketplace as well as the nature of the goods or services involved. This comes back to the value of the match.

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Better, Cheaper, More Convenient

Rob Go

As a result however, these companies don’t control a lot of the dimensions of what convenience might mean for a customer. Either you need some structural cost advantage that others can’t match, or you need to be generating revenue in a very different way that subsidizes your lower product margins.