Platform Business Models
Some of today's most successful start-up companies do not build or manufacture any products at all.
Instead, they connect providers of resources with their consumers, for example, sellers and buyers, drivers and riders, vacation property owners with guests, etc.
This kind of business is called a “platform business model.”
The ride-sharing company Uber is a good example of a platform business.
Unlike traditional taxi companies, Uber does not own any vehicles.
Rather, it connects drivers, who own the vehicles, with the people who are looking for a ride.
The Uber app for smartphones is simply the platform.
Uber is a platform business because it brings together drivers and passengers.
Similarly, Airbnb links up property owners who have space to rent with travelers who need a place to stay.
Airbnb does not have any rooms of its own but it facilitates nearly 80,000 guest bookings a day.
It is a true platform business.