Almost every large marketplace company is built on an underutilized asset, whether that’s unused real estate in the case of Airbnb, a car that’s sitting idle for Uber, or unused time for many labor marketplaces. Marketplaces allow owners of these idle assets the ability to monetize them more efficiently as the network grows larger. This form of Economic network effect can be strengthened as more participants join a network, because the additional data allows for personalization and targeting.
