ACQ2 by Acquired Marketplaces Deep Dive with Ramesh Johari
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Oct 3, 2019 Ramesh Johari, a Stanford professor and senior advisor to major companies like Airbnb and Uber, shares invaluable insights into the intricate world of marketplaces. He discusses how these platforms reduce friction for buyers and sellers, emphasizing the importance of trust and balance through strategies like escrow services. Johari further explores the evolution from service models to platforms and highlights the role of data in matching supply and demand. He also addresses the competitive landscape and the future of labor marketplaces, particularly the implications of AI and policy.
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Marketplaces Reduce Friction
- Marketplaces don't sell goods or services directly.
- They sell the reduction of transaction costs, making trade easier between buyers and sellers.
Three Marketplace Frictions
- Three key frictions exist in marketplaces: search/information, contract negotiation, and policing/enforcement.
- Buyers and sellers need to find each other, agree on terms, and ensure delivery/payment.
Uber's Differentiated Supply
- Even seemingly undifferentiated marketplaces like Uber involve buying from a supplier.
- Riders buy transportation at a specific time and place, relying on Uber to find a suitable driver.