Does the World Need Another Two-Sided Marketplace Startup?
Anyone can drive an Uber, but how do you validate demand for an expert service marketplace?
Over the last year, I’ve received a ton of inbound asking for advice on building two-sided service marketplaces for experts — everything from plumbers to nurses to attorneys.
These are not your everyday service marketplaces, like Uber or Wag, where anyone with a Prius or an extra leash can make some side cash. These are Expert Two-Sided Marketplaces (E2SM), offering services that require more rigorous training, certifications, licenses, or even advanced degrees.
I’ve got plenty of experience building E2SMs. In 2013, I sold a company called ExitEvent that, among other things, matched entrepreneurs with services from attorneys, recruiters, code shops, even investors.
And over the last three years, I’ve been building my current startup Spiffy from a mobile car wash to a nationwide mobile provider of all things vehicle, including services we do very well (oil changes) and services we’d rather farm out (windshield replacement).
E2SMs are everywhere, and furthermore, recent shifts in the economy are going to make these marketplaces even more necessary. Why sit for hours in a cramped Oil Change Shop waiting room when you can have your oil changed at home or at work?
But let’s revisit that word “necessary” for a moment. Just because you can dream up an expert two-sided marketplace platform doesn’t mean you should start a company around it.
What is an expert two-sided marketplace?
We’re all familiar with traditional 2SMs like Uber, Wag, or Instacart. The vendor side of these platforms is built around the notion that anyone can drive a car, walk a dog, or buy groceries. The vendor recruiting pitch for these 2SMs breaks down like this: The better you are, the higher your rating, the more business you get, the more money you make.
The rating is the economic driver on the vendor side, and it’s based solely on customer service. However, more often than not, it’s random, or worse, it’s driven by supply and demand. Pick up a gig no one wants, get more gigs, make…
