#Network effect explained: what two-way network effects do

At first glance, platforms all work according to the same principle: They are a kind of marketplace where #suppliers of products and services meet #interested parties.

B2B multisided platforms like transpora.io need network participants who can benefit from it for your needs. This requires that a #value exchange can take place between the network participants.

David Sacks, former COO of Paypal and Silicon Valley icon, once depicted the self-reinforcing network effects, using the example of #Uber, on a napkin.

Applied to the transpora.io business model, this means:

More #carriers lead to better market coverage and an improved offer. This in turn attracts more #shipper customers (construction companies, dealers and rental companies of construction machinery) who can benefit from it. These in turn attract other carriers and so on...

So the #network effect creates a positive influx of market participants as demand and supply increase, which in turn has some impact on the platform.

#platform economy #network effect #value exchange #b2b