Platform Business Model Definition: a Business Model That Creates Value by Facilitating Exchanges Between Two or More Interdependent Groups, Usually Consumers...
PLATFORM BUSINESS MODEL DEFINITION: a business model that creates value by facilitating exchanges between two or more interdependent groups, usually consumers and producers. Like Facebook, Uber, or Alibaba, these businesses don't directly create and control inventory via a supply chain the way linear businesses do.
What is an example of a platform?
An example of a platform is a raised surface next to a train track that you stand on while you wait for the train. An example of a platform is a graduation where you are asked to give the speech; a platform for your ideas. Windows or OSX (mac) are examples of a computer platform.
Google, Facebook, YouTube, Airbnb, Uber, eBay, Alibaba, PayPal make use of the platform business model. In this article, I use the terms “platform business model,” “platform business” and “platform” interchangeably. Economists also call them multi-sided platforms (MSP).