Platform Organizations

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A platform organization is an organization that supports the interaction or exchange between two or more other parties. A classical example of this platform model would be Uber the car sharing company that operates as the supporting platform for connecting people with cars to people who need mobility, other examples of platforms would include the App Store, Airbnb or eBay, while more traditional examples would include credit card providers like Visa, that facility the interaction between cardholders and merchants, another example would be job recruitment agencies or accommodation agencies. In economics, this is called a two-sided market, where the central role of the platform is in connecting different parties together and facilitating exchange.  Multi-sided platforms exist because there is a need for an intermediary in order to match both parties on the platform in an efficient way. This intermediary – the platform – will make possible exchanges that would not occur without them and create value for both sides. Platforms, by playing an intermediary role, produce certain value for both parties that are interconnected through it, and therefore those sides may both be seen as customers of the platform, unlike in the traditional seller-buyer dichotomy.

2016-10-13T18:28:18+00:00