Matchmakers

A unique type of facilitator in today's market connects different groups of customers, a concept seen in leading companies like Alibaba, Facebook, and Visa, as well as high-value startups such as Airbnb and Uber. These entities are referred to as multisided platforms by economists because they offer spaces, whether physical or digital, where diverse groups can interact. For instance, dating websites pair individuals searching for partners, while ride-sharing services link drivers with passengers. The concept of matchmaking isn't new, but its prominence and profitability have surged due to significant technological advancements. Companies that master this business model often become influential in their fields. However, despite the visible successes, launching a matchmaking platform is exceptionally challenging, and failure is common.In their book "Matchmakers," economists David Evans and Richard Schmalensee, pioneers in studying multisided platforms and consultants to some highly successful platform businesses, delve into what makes these platforms effective. They explore the reasons behind their operations and suggest strategies for entrepreneurs to increase their odds of success. As the influence of multisided platforms continues to grow, "Matchmakers" offers invaluable insights through a collection of stories detailing both triumphs and setbacks in the platform world. Whether you're an entrepreneur, investor, consumer, or corporate leader, understanding these platforms will become increasingly crucial, and this book serves as a key resource in navigating this complex but lucrative ecosystem.