In the on-demand economy, disruption can come from above
Clayton Christensen has written the book on disruption. He’s one of Silicon Valley’s most popular business school professors and we often subscribe to his theory on disruption from below. With his theory “Disruptive Innovation,” Christensen states that “a product or service takes root initially in simple applications at the bottom of a market and then relentlessly […]
Why there won’t be an Uber in every vertical
The success of Uber has inspired hundreds of startups to call themselves the “Uber of X, Y, or Z.” There are now apps to order groceries, have you car washed, get legal counsel, and much more. Uber is part of a broad category of on-demand mobile services. Thanks to smartphones and cloud computing, it’s easier than […]
Marketplace dynamics: buyer mindshare is key to building a moat
Most marketplaces start off by providing a unique supply of products/services. Demand follows supply, and so the flywheel of supply and demand begins. However, as a marketplace gains popularity, its supply inevitably becomes less and less unique. I know this firsthand. At AbeBooks, our booksellers initially listed only with us, but then started to list […]
The future of online marketplaces: “complex” transactions
The most successful online marketplaces today facilitate relatively simple transactions. There’s eBay and Etsy for buying/selling goods, AirBnB for short-term accommodations, and Uber for local transportation. While reputation mechanisms (i.e. user reviews) play an important role on these platforms, the price tags involved are typically low enough that customers are ready to deal with strangers […]