MIS 2101 Chapter 7: What Makes Uber Different from Android- How to Make Sense of Platforms Businesses
24 May 2018
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What Makes Uber Different from Android? How to Make Sense of Platforms Businesses
• Some platforms are more focused on reducing transaction costs, like Uber, while others
actually provide the underlying infrastructure that enables their users to create
• Exchange vs. Maker Platforms
o Exchange platforms:
▪ Platforms that provide value primarily by optimizing exchanges directly
between consumer and producer
o Maker platforms:
▪ Platforms that generate value by enabling producers to create
complementary products and broadcast or distribute them to a large
audience
• Matching Intention: Exchange vs. Maker
o The maximum number of units of an item that a producer can exchange at a
given time
• Exchange Platforms: 1:1 Interactions
o Value of a producer’s atchig itetio ca vary depending on the type of
interaction involved; always has a limited, discrete value
o Ratio usually is 1:1 or 1:few
• Maker Platforms: 1:Many Interactions
o Do’t have a sall liitatio; theoretically ifiite
• Platform Design
o Exchange platforms need to focus on building liquid marketplaces that have
sufficient overlap of supply and demand
o Maker platforms want existing celebrities to join and bring their fans with them;
platforms can also create their ow celebrities due to network effects within its
network
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