Platform Business Model

What is Platform Business Model?

A platform business model creates value by facilitating exchanges between two or more interdependent groups, usually consumers and producers. Unlike traditional linear businesses, platforms don’t just sell products; they build ecosystems.

Why It Matters

• It allows for massive scale and reach by leveraging the resources and creativity of third-party participants.

• Platforms often capture a significant portion of the value created within their ecosystem through fees or data.

• They are highly resilient, as the platform can adapt to changes in the market by supporting new types of interactions.