Matchmakers

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Many dynamic public companies, like Alibaba and Facebook, as well as valuable start-ups such as Airbnb and Uber, function as matchmakers that connect different customer groups. Economists refer to these as multisided platforms, which facilitate interactions between multiple parties. For instance, dating sites link individuals seeking relationships, while ride-sharing apps connect drivers with riders. Although matchmakers have existed for centuries, their popularity and profitability have surged due to technological advancements. However, launching a matchmaking business is incredibly challenging, and many who attempt it fail. In this insightful work, economists David Evans and Richard Schmalensee, pioneers in analyzing multisided platforms, delve into the mechanics of successful matchmakers. They share practical insights on why these platforms operate effectively and how entrepreneurs can enhance their chances of success. As multisided platforms increasingly shape the future for entrepreneurs, investors, consumers, and executives alike, this book—filled with compelling stories of both triumphs and failures—serves as an essential guide to navigating this complex landscape.