The $100 MBA Show MBA2654 Q&A Wednesday: Why Do You Rarely Talk About Marketplace Startups?
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Jul 23, 2025 Marketplace startups are often overlooked, and this discussion reveals why. The challenges of launching two-sided marketplaces, particularly for bootstrap entrepreneurs, are explored. Real-world examples like Uber and Airbnb illustrate issues such as user trust and high acquisition costs. Instead of focusing on these daunting models, the conversation advocates for simpler, more traditional business strategies that cater to specific customer needs. Get ready for insightful advice that could reshape your entrepreneurial journey!
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Marketplaces Are Tough to Launch
- Two-sided marketplaces are notoriously difficult to launch successfully, especially for bootstrapped entrepreneurs.
- Famous successes like Uber and Airbnb are rare exceptions, not the norm.
You Build Two Businesses
- Marketplaces require building two distinct businesses simultaneously to serve two separate customer groups.
- This doubles complexity with separate marketing, onboarding, support, and incentives for each side.
Airbnb's Early Hustle
- Airbnb founders manually onboarded hosts by taking photos and writing listings to overcome the chicken and egg problem.
- This intense hustle was required to fake early traction before revenue appeared.