Marketplaces (and Network Effects)

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Jeff Jordan
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What makes marketplace business models so attractive, especially as compared to classic ecommerce and retail? (Hint: network effects.) From the classic unbundling of Craigslist to entirely new marketplaces enabled by smartphones and mobile, a16z general partner Jeff Jordan — a veteran of numerous mar...

What makes marketplace business models so attractive, especially as compared to classic ecommerce and retail? (Hint: network effects.)
From the classic unbundling of Craigslist to entirely new marketplaces enabled by smartphones and mobile, a16z general partner Jeff Jordan — a veteran of numerous marketplace businesses and currently on the boards of many such a16z companies — shares examples, drivers of profitability/margins/moats, and what makes marketplaces superior for consumers as well: identity, reputation, payments, trust and safety, frictionlessness, and transparency.
This video is based on a talk given in 2015.

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Andrew Chen

To lead off this list, my colleague @jeff_jordan has an awesome preso that covers everything from the marketplace “wheel” – network effects, and how they’re different than ecommerce products. Amazing, thoughtful preso. Must watch.

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a16z’s Jeff Jordan shares what makes marketplace business models so attractive, especially compared to classic ecommerce and retail.