Platform Businesses

In this short video for students taking courses in microeconomics, we look at the rise to prominence of platform businesses.

A platform business is a business model that focuses on helping to facilitate interactions across a very large number of participants (buyers and sellers).

Digital platforms are proliferating in many countries and many sectors of the economy, but the size and market power of some platforms means competition authorities are facing calls for tougher action to address concerns that some platform businesses have too much market power which can have damaging consequences for consumer and social welfare.

Examples of platform businesses

Here are some examples of platform businesses:

1. Airbnb: Airbnb is a platform that connects travelers with homeowners or property managers who have rental properties available. Airbnb acts as a mediator between the two groups, facilitating bookings and payments.
2. Uber: Uber is a platform that connects drivers with passengers who need a ride. Uber acts as a mediator between the two groups, facilitating the dispatch of rides and handling payments.
3. Amazon: Amazon is a platform that connects consumers with merchants who want to sell their products. Amazon acts as a mediator between the two groups, facilitating the sale and delivery of products and handling payments.
4. eBay: eBay is a platform that connects buyers with sellers who want to auction or sell their goods. eBay acts as a mediator between the two groups, facilitating the sale and delivery of goods and handling payments.
5. Spotify: Spotify is a music streaming platform that connects musicians with listeners. It acts as a mediator between the two groups, facilitating the streaming of music and handling payments.
6. Grubhub: Grubhub is a food delivery platform that connects restaurants with customers who want to order food for delivery. It acts as a mediator between the two groups, facilitating the delivery of food and handling payments.
7. TaskRabbit: TaskRabbit is a platform that connects people who need tasks completed with local freelancers who can help them. It acts as a mediator between the two groups, facilitating the completion of tasks and handling payments.
8. Upwork: Upwork is a platform that connects businesses with freelancers and independent contractors who offer a variety of services such as web design, writing, and marketing. It acts as a mediator between the two groups, facilitating the completion of projects and handling payments