Platform economy has become one of the world’s fastest-growing business models and has grown to include millions of users worldwide. Platforms enable any individual or company to offer products or services that anyone can buy or sell using as an intermediary. When we look at what a platform is, it becomes easier to understand why this type of model is so prevalent in our increasingly digitised world.
Simply put, a platform can be considered a tool or place where people gather and engage with one another. A platform is also a way for sellers to connect with buyers, distributors with suppliers, providers to connect with clients and customers, etc.
This article will look at three key features of the global platform economy, examples, and business models.
What is the platform economy?
Platforms are online marketplaces where goods or services are traded and consumed by customers. The platform economy is a service-based economy that emerged in the last decade due to technological advancements, globalization, and data availability. It has seen significant growth in recent years with the increase in both mobile technology and its usage.
3 Features of Platform Economy
The platform economy is a new way of doing business based on collaborative consumption and sharing of resources. This type of economy is made possible by technology platforms that connect people and businesses.
The three key features of the platform economy are;
1. Access to a Global Market of Buyers and Sellers
The key feature of a global platform economy is that it enables access to a global market of buyers and sellers. In a global platform economy, buyers and sellers are connected via an online platform. Online platforms allow users to share their products or services with consumers worldwide, increasing the odds that they will find someone interested in what they offer. This allows for a broader range of goods and services to be exchanged and a more significant number of potential buyers and sellers.
2. Flexibility and Scalability
A global platform economy’s key features are its flexibility and scalability. This means that businesses can operate in multiple countries and across different industries. Additionally, it allows businesses to adapt to changing market conditions quickly. This flexibility and scalability are crucial because it enables businesses to grow and expand into new markets. It also helps maintain efficiency during periods of economic change or recession.
3. A Focus on Customer Experience
Businesses need to focus on creating a great customer experience in a global platform economy. This means providing customers with what they want when they want it and conveniently. Businesses also need to know how customers receive their products and how this information can be used to improve their services or provide new ones. Data collection has become more important in a globalized economy as companies have become more aware of the power of data analytics.
Examples of Global Platforms
1. Airbnb
Airbnb is a platform that allows users to share and rent out their homes. Users can search properties on the website and can book stays online. They can also provide customer reviews so that others know what to expect from an experience at a specific property. Along with this being an excellent opportunity for homeowners to make extra money, it also gives people looking for short-term accommodations another option.
2. AmazingTalker
AmazingTalker is an online platform that connects students with certified teachers for language learning. The company recruits and trains English-speaking certified teachers from around the world. These accredited teachers are screened and interviewed to ensure they are qualified to teach English learners. AmazingTalker is well positioned to take advantage of the platform economy because of its global reach and commitment to quality teaching.
3. Uber
As one of the most popular and well-known companies in the platform economy, Uber has disrupted the traditional taxi industry by making it easier and more convenient for people to get around. Uber is a platform company because it connects riders with drivers through its app, which acts as a two-sided marketplace. This means that Uber doesn’t own any vehicles or employ any drivers – instead, it relies on third-party contractors to provide these services. This business model has allowed Uber to scale quickly and become a household name.
Conclusion
The platform economy is booming and shows no signs of slowing down. The platform economy is all about collaboration, convenience, and choice. By harnessing the power of technology, businesses in the platform economy can provide their customers with a better experience. By understanding the key features of this type of economy, you can position yourself and your business for success.
When done right, the platform economy can be a win-win for everyone involved. It can allow customers more control over what they buy, create new career opportunities for people skilled at working on digital platforms, and increase economic growth.
