If you haven’t yet heard of the customer-to-customer (C2C) economy, you’ve almost certainly participated in it. It’s where customers connect with other customers to communicate or trade goods/services, usually via an intermediary platform like Facebook, Uber or Etsy.

1. WHY EVERY BUSINESS MUST
CONSIDER THE PLATFORM (OR
C2C) TREND

2. © 2021 Bernard Marr, Bernard Marr & Co. All rights reserved
If you haven’t yet heard of the customer-to-customer (C2C) economy, you’ve almost
certainly participated in it. It’s where customers connect with other customers to
communicate or trade goods/services, usually via an intermediary platform like
Facebook, Uber or Etsy.
The C2C economy has made platforms very powerful. Indeed, look at a list of the world's
most valuable companies at any one time, and I bet the majority of them will be
platform businesses: Alphabet, Amazon, Facebook, Tencent, Alibaba… Organizations
that have created a safe, easy way for relevant parties to connect, communicate, or trade
have seen enormous growth. These days, it pays to be a platform business.
WHY EVERY BUSINESS MUST CONSIDER THE
PLATFORM (OR C2C) TREND

3. © 2021 Bernard Marr, Bernard Marr & Co. All rights reserved
WHAT EXACTLY IS A PLATFORM BUSINESS?
This notion of facilitating exchanges between users (typically consumers and providers,
although I use the term “users” as a catch-all) lies at the heart of the platform business
model. The platform business doesn’t typically create or own inventory, like a traditional
business does. Rather, the asset is the platform itself (including proprietary software, user
data, etc.).
Platform businesses aren’t new as such. A shopping mall is effectively an old-school
platform business because it connects retailers with consumers and facilitates a pleasant
shopping environment. What’s different about the new wave of powerful platform
businesses is the interactions and transactions are facilitated online – and, importantly, this
means exchanges can be facilitated on a huge scale.

4. © 2021 Bernard Marr, Bernard Marr & Co. All rights reserved
Therefore, the platform adds value by creating enormous networks of users that other users
can tap into – whether it’s a craftsperson looking to tap into a large pool of potential
customers (Etsy), a freelancer looking for contract work (Fiverr), a business looking to target
its adverts at specific customer groups (Google), a podcaster looking to release their
podcast to the masses (Apple Podcasts), or simply someone looking to connect with friends
and likeminded folk (Facebook). Platforms, in other words, build communities and markets
that users can access on demand.
As well as building a huge network, platforms create value by matching relevant users
together, perhaps through recommendation engines. Platforms also ensure transactions
and interactions take place in a safe, easy and secure space; for example, by providing a
payment mechanism, setting community rules and standards for users, and monitoring for
offensive content.

5. © 2021 Bernard Marr, Bernard Marr & Co. All rights reserved
QUICK CASE STUDY: INSTACART
Founded in 2012, Instacart connects shoppers with a range of local grocery stores, all in one
place. With the Instacart app, you select your favorite grocery store, and the items you want to
purchase, then an Instacart worker will go and buy those items for you and deliver them to your
door in as little as one hour. For shoppers across the US, Instacart allows them to shop online
for groceries from a wide range of local stores, not just the huge supermarket chains – and
order from multiple stores at a time. And for smaller grocery stores, the platform allows them to
provide a delivery option without investing in their own e-commerce platform and delivery
infrastructure.
Instacart itself earns revenue through delivery fees, service fees, membership fees for Instacart
Express (which provides unlimited free one-hour delivery), and marked-up prices on goods
from certain retailers. And the workers who do the shopping earn a by-the-hour wage, and
often a tip.

6. © 2021 Bernard Marr, Bernard Marr & Co. All rights reserved
PLATFORMS AND THE SHARING ECONOMY
The rise of platforms and the rise of the sharing economy – in which people can access goods
and services for short-term rentals – are inextricably linked. These days it’s possible to rent
anything from a car, bike or scooter to a whole house for a short period of time, and there are
many platform businesses out there, such as Airbnb, who promise to facilitate these exchanges.
Take Zipcar as an example. The company gives more than one million members access to over
12,000 vehicles in around 500 towns and cities across the world. Members can access a car (or
van) on demand, from around $7 an hour (depending on location), and gain easy access by
simply tapping their app-based digital key against a reader located on the car.
It’s not just Western economies that are embracing the sharing economy; in fact, it’s particularly
popular in China, where 94 percent of people are willing to embrace shared goods and
services.

7. © 2021 Bernard Marr, Bernard Marr & Co. All rights reserved
BUT WE’RE NOT A PLATFORM BUSINESS…
Even if your business is a traditional linear business, with a typical inventory and supply
chain, it’s worth paying attention to this trend. Certainly, all businesses should consider
how the platform business model could improve – or potentially threaten – your business.
For instance, there may be an opportunity to pivot to a platform model, or introduce a
new business built around a value-adding platform.
Scratch the surface and you’ll find many traditional businesses are embracing the platform
business model. The Zipcar example I mentioned? The company is owned by car rental
firm Avis Budget Group, which goes to show how existing organizations can successfully
add a platform business to their revenue stream.

8. © 2021 Bernard Marr, Bernard Marr & Co. All rights reserved
To stay on top of this and other future trends subscribe to my newsletter and
have a look at my book Business Trends in Practice: The 25+ Trends That are
Redefining Organizations. Packed with real-world examples, it cuts through
the hype to present the key trends that will shape the businesses of the
future.

9. © 2021 Bernard Marr , Bernard Marr & Co. All rights reserved
Bernard Marr is an internationally best-selling author, popular keynote speaker,
futurist, and a strategic business & technology advisor to governments and
companies. He helps organisations improve their business performance, use data
more intelligently, and understand the implications of new technologies such as
artificial intelligence, big data, blockchains, and the Internet of Things.
LinkedIn has ranked Bernard as one of the world’s top 5 business influencers. He is
a frequent contributor to the World Economic Forum and writes a regular column for
Forbes. Every day Bernard actively engages his 1.5 million social media followers
and shares content that reaches millions of readers.

10. hello@bernardmarr.com
www.bernardmarr.com