Oldie but goodie on marketplace liquidity.

Liquidity is the lifeblood of marketplaces. It is the efficiency with which a marketplace matches buyers and sellers on its platform. One could say that a marketplace without liquidity has no real product because the ability to transact on the platform IS the product.

Buyer liquidity represents the likelihood that a request or a search leads to a transaction.

Supplier liquidity is best captured by measuring the *Utilization Rate* of the supply side.

Oldie but goodie on marketplace liquidity.

Liquidity is the lifeblood of marketplaces. It is the efficiency with which a marketplace matches buyers and sellers on its platform. One could say that a marketplace without liquidity has no real product because the ability to transact on the platform IS the product.

Buyer liquidity represents the likelihood that a request or a search leads to a transaction.

Supplier liquidity is best captured by measuring the *Utilization Rate* of the supply side.

https://medium.com/point-nine-news/wtf-is-marketplace-liquidity-f2caca3802c0

Have you read Modern Monopolies? It’s my go to resource for folks wanting to learn more about marketplaces.

leader • reader • taco eater • sports fan • fly eagles fly • @bunches • /whiskey • previously addepar, linkedin • https://nf.td/derek

Two fold:

1. All monopolies are essentially mining companies in some way. 

2. The platform business model is the most lucrative application of network effects.

Yea but it’s been a few years. Good reminder to flip through again. What was your main takeaway from it?