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Let's Talk Marketplaces: Product & Growth by Lyft Product Lead

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This presentation is from a talk given by Lyft Product Lead during Virtual #ProductSummit in March 2020.

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Let's Talk Marketplaces: Product & Growth by Lyft Product Lead

  1. 1. www.productschool.com Let's Talk Marketplaces: Product & Growth by Lyft Product Lead
  2. 2. Join 55,000+ Product Managers on Free Resources Discover great job opportunities Job Portal prdct.school/PSJobPortalprdct.school/events-slack
  3. 3. CERTIFICATES Your Product Management Certificate Path Product Executive Certificate™ Product Leader Certificate™ Product Manager Certificate™ 20 HOURS40 HOURS40 HOURS
  4. 4. Corporate Training Level up your team’s Product Management skills
  5. 5. Marketplaces 101 Pratik Shah
  6. 6. About me PM @ Various Martech startups Product & Growth @ Airbnb Sold FinTech startup to Reuters Current: Marketplace PM @ Lyft
  7. 7. Objective Introduction to Marketplaces - Product & Growth strategy
  8. 8. AGENDA 01 Intro 02 Strategy 03 Evolution
  9. 9. Avenue where buyers and sellers meet & conduct commerce
  10. 10. Marketplaces across various industries - classic unbundling of craigslist
  11. 11. Moats = Network effects
  12. 12. Economic value
  13. 13. Environment & timing
  14. 14. AGENDA 01 Intro 02 Strategy 03 Evolution
  15. 15. Stages of building a marketplace Scaling & defending a marketplace As a marketplace figures out how to bring buyers and sellers together and builds liquidity, the virtuous cycle starts kicking in. 3 Growing a marketplace The virtuous cycle is the holy grail for online marketplaces. In this positive feedback loop, a high number of quality suppliers attract more customers; then more customers attract more suppliers to join. 2 Seeding a marketplace The earliest days in a marketplace are a tricky time. There’s a chicken and egg problem when it comes to supply and demand: customers need supply, and suppliers need customers 1
  16. 16. Stage 1: Seeding a marketplace (supply side) Aggregate readily accessible inventory05 ● The last strategy is to aggregate inventory that’s already listed somewhere, for example through affiliate programs. Pay for inventory04 ● During the early days at Boris’ startup JustBooks, their first growth hack was buying books to list so they didn’t have an empty site. When Uber launched in Seattle, they paid town car drivers to idle. Bring customers to a provider03 ● some restaurant delivery startups started out by scraping the web for menus from local area restaurants. Then when a customer places an order on their site, the startup goes to the restaurant to get the order fulfilled. Convince existing sellers to list on your platform02 ● Airbnb found some interesting ways to leverage the existing supply on Craigslist, including emailing Craigslist listers and encouraging them to check out Airbnb. Identify unique inventory01 ● Etsy went after the producers of hand-made goods. These designers and crafters found their unique goods buried within eBay’s massive inventory and typically resorted to selling their items locally at craft shows, farmers’ markets,
  17. 17. Stage 2: Growing a marketplace (supply & demand) A/B Testing | Analytics | Attribution | Personalization Acquisition & Activation Search Virality Paid Affiliate Framework CRM Tools Loyalty Program Community & NFX Retention & Engagement Data Foundation
  18. 18. Stage 3: Scaling & defending a marketplace (Tools) TRUST & SAFETY Rating system, user reviews, or testimonials BUILD MOAT Protect supply & win buyer mindshare SUPPORT POWER SELLERS Power seller programs, insurance, customer support PREVENT LEAKAGE Well designed rating system, incentives DEVELOP AN ECOSYSTEM Leasing & financial services, Mechanic, Property mgt
  19. 19. Secret sauce: successful marketplace startup Go vertical A startup can unbundle a generalized marketplace and focus on creating the best product for a specific vertical. Many marketplaces have struck gold by picking one thing and doing it extremely well. Develop a 10x better product “a 10x product and save people money” is the undercurrent running through dozens of breakout companies, including Uber, Airbnb, and WhatsApp Unique inventory a marketplace startup can focus on the supply side, and identify opportunities to bring unique inventory to underserved markets. This strategy certainly helped Airbnb against HomeAway, as well as Etsy vs. eBay. 03 01 02
  20. 20. Case study : Airbnb’s flywheel
  21. 21. Case study : Uber’s flywheel
  22. 22. AGENDA 01 Intro 02 Strategy 03 Evolution
  23. 23. Fragmentation Are there lots of buyers & sellers? Relationships Monogamy vs playing the field? Frequency How often do the transactions occur? Payment & trust Is payment inherent part of marketplace? Expansion Can we create new supply/demand & expand market? Marketplace success factors
  24. 24. Marketplace defensibility : Type of network effect Lyft, TaskRabbit Airbnb, eBay
  25. 25. Marketplaces models 5 DECENTRALIZED M ARKETPLACES OpenBazaar,Blockchain 4 SAAS EN ABLED M ARKETPLACES OpenTable,Zenefits 3 COM M UNITY LED M ARKETPLACES Etsy,Lyft M AN AGED M ARKETPLACES OpenDoor,RealReal 21 ON DEM AND M ARKETPLACES Uber,Airbnb,Instacart
  26. 26. Evolution of marketplaces
  27. 27. Evolution of marketplaces
  28. 28. Evolution of marketplaces
  29. 29. Thank you.
  30. 30. www.productschool.com Part-time Product Management Training Courses and Corporate Training

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