3.3 Matchmaking business model
This type of business model relies on the firm (or any other organisation) on the left-hand side of the animation below, facilitating exchanges between two ‘customers’ that would not have interacted otherwise or previously. In this type of business model, the firm is joining sellers (customer A) and buyers (customer B) in its online or physical platform (online marketplace). For example, a firm or an organisation organising a ‘makers market’ where independent producers of woodcraft, pottery, food and clothing bring their stalls and sell to end consumers, including each other.
Animation 3 shows how the matchmaking business model works.
In recent times, there have been numerous examples of matchmaking business models created online. Typical examples of this business model are online platforms that connect two individuals (e.g. Airbnb, BlaBlaCar, Love Home Swap) or a company and an individual (e.g. Uber, Lyft, Deliveroo, Just Eat). Charging mechanisms are almost always based on a fee. For instance, Deliveroo applies a fee based on trade to ‘regular’ customers and a flat monthly fee to ‘Plus’ customers who subscribe to its membership plan. In some instances, the firm/platform organiser might charge additional fees to companies for just being able to offer their products and services through the platform. All these represent different revenue models used by the platform to make money: flat fee, rate on the sales and membership. You will find out more about ways to make money later this week, but this example shows how business and revenue models go hand-in-hand.
The matchmaking business model offers new opportunities both for drone manufacturers and agri-business entrepreneurs, such as those offering drone maintenance services. For example, either of them can establish a physical (or online) marketplace for drone component parts, such as cameras, second-hand drones, or maintenance of drones. Farmers can get access to drones or to spare parts at more affordable prices on such marketplaces.