What is a two-sided market in technology? 🔊
A two-sided market in technology refers to a platform that connects two distinct user groups, creating value for both. Examples include ride-sharing apps that connect drivers with passengers or online marketplaces that link sellers with buyers. These platforms facilitate interaction between the two sides through a common interface, which generates network effects where the value increases as more users join. They often rely on transaction fees or advertising to monetize their services while ensuring balanced engagement between the groups.
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