A marketplace is a platform that connects buyers and sellers of goods and services 💱

For example, your local farmer’s market is a marketplace that connects farmers to people who want to buy produce 🥕

Since the dawn of the Internet, many online marketplaces have emerged, leveraging technology like websites and apps to connect buyers and sellers online 🖥️

You might know of, or already use, many online marketplaces, like Uber, Ebay Airbnb and DoorDash

For example, Uber is an app that matches people needing rides with drivers looking to earn some extra cash 🚗

They don't own cars or employ their drivers directly; they build technology that connects people.

Meanwhile, taxi companies rent or buy the cars they use, and pay their drivers a full-time wage 🚕

So compared to taxi companies, Uber can scale much faster because they have less physical constraints, and can grow their revenue without growing their costs significantly 💡

In this journey, we’ll explore how marketplace businesses work, some of their unique qualities and how you can evaluate them as an investor 🚀