This is no coincidence, because marketplace business models have strong network effects that make them more defensible businesses. Many people don't realize that the largest online marketplace is sitting right under their nose—or on their home screen: Amazon. Amazon didn't start out as a traditional marketplace, but now it's grown into the largest one in the United States. I applied my marketplace checklist to Uber and Airbnb, and it would be interesting to look at Amazon with that lens as well:1. Overall, it is no surprise that Amazon has powerful network effects and reached where it is today based on these strong marketplace checklist dynamics.

Source: Forbes July 17, 2019 22:52 UTC