How Modern Marketplaces Like Uber And Airbnb Build Trust To Achieve Liquidity

TechCrunch

Editor’s note: Anand Iyer is the Head of Product at Threadflip. Previously, he was co-founder and CTO of Hitpost, acquired by Yahoo, and managed product at IGN Entertainment and Microsoft. This post also ran on First Round Review. Follow him on Twitter.

In 2009, Airbnb was close to going bust with revenue flatlining at $200 a week. Since then, over 9 million people have used it to find temporary housing. Etsy was founded almost a decade ago, but doubled its valuation with its last two rounds of funding.

The gradual but ultimately huge success of these entrants to the marketplace space has paved the way for Uber and Lyft’s breakout growth, and the explosion in startups with marketplace models: PostmatesGetaroundTaskRabbit, and more — quickly eclipsing the old guard represented by Craigslist.

Marketplace startups are unique because they aren’t just serving one base…

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