So here, everyone, in the last two videos, we were discussing a lot about aggregator and marketplace
and how these business model are somewhat similar, but they have some differences as well.
So let's talk about all those slight differences that are there between an aggregator and a marketplace.
Let's start by understanding some companies that use marketplace business model and few companies that
use aggregator business model.
So companies like Amazon simply connect's vendor or third party seller with the customer.
And then they also provide services like payment and logistic.
On the other side, companies like Uber and Airbnb on board all these vendors like property owner or
car driver under a single brand that is Uber or Airbnb, and then they provide services to these different
customer.
But let's understand about all the differences that these two have.
The first difference is branding.
If you go to an e commerce website or a marketplace like Amazon.com, you will find variety of product
of different brands.
But on aggregator, all these goods are aggregated under a single brand name.
So if you book a cab on Uber now, in that case, it's the Uber's responsibility to make sure that you
are having a safe ride.
The second difference is industry.
If you look at a marketplace like Amazon.
So on Amazon, you can buy anything from a yoga mat to a ceiling fan.
But on aggregator, all these goods belong to a single industry.
Airbnb is exclusively there for property and Uber is exclusively there for transportation.
The third difference is quality, because all these marketplace have variety of sellers and they are
having their own personal identity and pricing.
You may not be able to find a uniform quality in their product, but on aggregator they have a strong
quality standard and that's why you will find a uniform quality across all the different product, at
least in case of Uber, if not in case of Airbnb.
The four difference is price.
So on Marketplace, you can buy anything from a yoga mat to a macbook and that's why you will see a
wide price difference.
But on aggregator you will find all these products at almost the same price.
So if you look at Uber, you still have to pay anywhere between $5 to, let's say, $20.
In case of Airbnb, you have to pay somewhere between maybe $50 to, let's say, one $50.
So that doesn't have a huge difference in the price range of different product.
The fifth one is Thomson Condition.
Because in Marketplace, multiple sellers are selling their product.
They may have these different terms and conditions, but on aggregator you just have to accept one terms
and condition.
Sixth one is responsibility.
So marketplace still take some short of responsibility if the product is damaged or let's say if the
product is not meeting their guidelines, but they still are not very strict in terms of the responsibility.
But on aggregator, they they're fully responsible for anything that goes wrong with their product.
And that's the basic difference between an aggregator and a marketplace.
So in the next video, I'm going to give you a problem solving assignment, and I personally request
you to complete that assignment so that you can implement your learning.