A multisided platform is an organization that produces value primarily by facilitating direct connections between two (or more) distinct types of linked clients. Stimulate network effects is one of the key tasks of a platform provider. Multisided platforms are all about bringing offer and demand together. The platform acts as an intermediary. Think ebay, airbnb, Craigslist, ...

When and how to apply Multisided Platform:

The multisided platform business model is essentially a service or product that acts as an intermediary between two or more participant groups. Its value proposition is to facilitate this connection, making it easier for individuals to locate and interact with one another.

In the world of multisided platforms, the network effect can be positive or negative, thereby increasing or decreasing the value of the business. The multisided platforms must attract users in order to be beneficial for all participant groups and, consequently, to be profitable. The more users, the greater the value. Direct network effects, also known as same-side network effects, are possible. As the term implies, it occurs when participants on one side of a network influence one another. As an illustration, consider social media platforms such as Facebook and Instagram: the more users, the more interesting it becomes. An indirect network effect or a cross-sided network effect may exist. In this instance, participants on one side influence those on the other. It is the most prevalent, as there cannot be many suppliers if there is no demand. However, the audience loses interest if there are insufficient options. For instance, drivers and passengers, or consumers and product diversity.

Well-known companies that use this pattern are Uber and Facebook.