A nice essay about the evolution of marketplaces by Li Jin and Andrew Chen, both investors @ A16Z.
The first thing they say that the next trillion-dollar opportunity lies in services vs. goods. Why?
In the past twenty years, we’ve transformed the way people buy goods online, and in the process created Amazon, eBay, JD.com, Alibaba, and other e-commerce giants, accounting for trillions of dollars in market capitalization. The next era will do the same to the $9.7 trillion U.S. consumer service economy, through discontinuous innovations in AI and automation, new marketplace paradigms, and overcoming regulatory capture.
The service economy lags: while services make up 69% of national consumer spending, the Bureau of Economic Analysis estimated that just 7% of services were primarily digital, meaning they utilized the internet to conduct transactions.
There is a clear trend that software is eating the service economy, but it’s been slow, and they unpack the reasons for that in the article.
They also cover how marketplaces were evolving over the last decades, essentially in 4 eras:
1. The Listings Era (1990s). These marketplaces were the digital version of the Yellow Pages, enabling visibility into which service providers existed, but placing the onus on the user to assess providers, contact them, arrange times to meet, and transact.
2. The Unbundled Craigslist Era (2000s). Companies iterated on the horizontal marketplace model by focusing on a specific sub-vertical, enabling them to offer features tailored to a specific industry.
3. The ‘Uber for X’ Era (2009-2015). In the early 2010s, a wave of on-demand marketplaces for simple services arose, including transportation, food delivery, and valet parking. These marketplaces were enabled by widespread mobile adoption, making it possible to book a service or accept a job with the tap of a button.
4. The Managed Marketplace Era (Mid-2010s). Managed marketplaces take on additional work of actually influencing or managing the service experience, and in doing so, create a step-function improvement in the customer experience. Rather than just enabling customers to discover and build trust with the end provider, these marketplaces take on the work of actually creating trust.
The big question is, what’s next? My answer is Qoorio.
Watch the interview here: https://www.youtube.com/watch?v=zl14Ty5-0Ko
Read the article here: https://a16z.com/2018/11/27/services-marketplaces-service-economy-evolution-whats-next/
"Practice makes perfect."
Sounds more like a curse.
In this day and age everything moves a million miles an hour and perfectionism can be a hinderance.
Don't strive for perfection, you need to do, just do. Figure it out as you go. You will fail, hit speedbumps, be challeneged but you will ultimately succeed and overcome those challenges.
Don't strive for perfect, strive to do, to create, to be proud.
You will hone your craft but it takes time.
Patience is tenacity.
Not NakanoWork in motorsport world. Finding new talents, growing with passion 🏍️🏎️Some time ago
Growing with passion is the first step towards happiness.