Multi-Sided Markets

Multi-sided markets are platforms that connect two or more distinct groups of users who benefit from each other’s participation. For example, a credit card company connects cardholders and merchants; cardholders want rewards, and merchants want customers. Each group adds value to the other, and the platform thrives when the right balance of users exists. Successful examples include ride-sharing apps (drivers and passengers) and social media (users and advertisers). The interplay between these groups is crucial for the platform's growth and sustainability.