Watching the explosive growth and global adoption of Uber and Airbnb has convinced me that strangers are willing to connect for the right price. These platforms digitize supply and demand, creating wealth not only for the company shareholders but also for the suppliers using the site. Flexible, asset-light business models have the potential to disrupt incumbents, which rely on pre-Internet distribution methods and extensive inventories. In this new game, fleets of taxis or hotel chains have become liabilities rather than assets during the growth phase. Peer-to-peer exchanges allow new companies to avoid buying inventory; instead of managing physical goods, the company exists to create a service that unlocks the value of assets that users already own.
Digitizing Supply and Demand ⚡️
Digitizing Supply and Demand ⚡️
Digitizing Supply and Demand ⚡️
Watching the explosive growth and global adoption of Uber and Airbnb has convinced me that strangers are willing to connect for the right price. These platforms digitize supply and demand, creating wealth not only for the company shareholders but also for the suppliers using the site. Flexible, asset-light business models have the potential to disrupt incumbents, which rely on pre-Internet distribution methods and extensive inventories. In this new game, fleets of taxis or hotel chains have become liabilities rather than assets during the growth phase. Peer-to-peer exchanges allow new companies to avoid buying inventory; instead of managing physical goods, the company exists to create a service that unlocks the value of assets that users already own.