Multi-sided marketplaces that bring supply and demand together have exploded in recent years. But despite this latest wave of growth, digital marketplaces are as old as the internet itself. Pioneers like Ebay broke down barriers for buyers and sellers and created peer-to-peer ecommerce networks that have been mirrored and iterated on multiple times since.
Recently, the growth of the collaboration and sharing economies has seen new marketplace models emerge. Platforms such as Fiverr, Uber, and TaskRabbit are leveraging marketplace models to deliver value to consumers and shareholders alike. The opportunity is huge and PwC estimates global revenues in the sharing economy will reach $335 billion by 2025.
These business models have inspired a new wave of businesses to develop custom marketplaces as a means to deliver high quality branded experiences to consumers.
Read on for five examples of branded experience marketplaces.
Michaels Stores – Online and in-store classes
As North America’s largest retailer of arts and crafts materials, Michaels has been empowering Makers of all ages to express their imaginations with skill and originality. For decades, Michaels has served do-it-yourselfers with all the supplies and know-how required to tackle a vast range of projects. But for those not in the know, Michaels commitment to its customers goes even further.
Their Community Classroom program has been a focus of the business for the past few years and has grown exponentially through in-store and online classes. To date, more than 400,000 Makers have signed up for their classes.
In 2020, as the program scaled, Michaels used AnyRoad’s Marketplace product to launch a streamlined Instructor Portal for instructors to self-manage classes and schedules. The program provided a revenue stream for expert instructors from the community as well as a mechanism to increase foot traffic to Michael’s retail stores. By engaging a community of instructors, Michaels was able to scale the program without creating a direct staffing burden. This served to empower store associates to focus on serving customers and allowed for a richer catalog of courses sourced from the community that may not have been possible otherwise.
Nestle – Online dog training
Founded in 1866, Nestlé is the largest CPG company in the world. With a portfolio of brands covering the spectrum of consumer goods, Nestlé is continually innovating and experimenting within its brands, most notably through its Silicon Valley Innovation Outpost (SVIO).
In 2020, as part of the SVIO’s focus on new business models and channels, Nestlé identified an opportunity to create a two-sided experiential marketplace that could have broad application and reach beyond a single brand. To innovate quickly, SVIO imagined a two-sided marketplace in the pet space where dog owners could connect through interactive experiences that included cost-effective resources, education, and training.
In just 60-days, the team worked with AnyRoad to deploy a two-sided marketplace that engaged trainers from across the United States to deliver unique online experiences for dog owners. Learn more >
Hagerty – Classic car driving experiences
The classic car experience is generally reserved for enthusiasts and collectors with money and time to spare. With Hagerty’s Drive Share marketplace this may no longer be the case.
In 2017, Hagerty—a specialty insurance provider for classic automobiles—acquired Massachusetts-based online rental system formerly known as Classics&Exotics. The rebranded business rolled under the Hagerty brand as Drive Share.
Both owners and renters are screened and vetted by DriveShare prior to participation. Once a car is reserved, arrangements are made between the two parties regarding pick-up and drop-off.
Referred to as a quasi Airbnb for cars (or an exotic version of Turo), the platform pairs drivers with cars while providing the owners of each vehicle with another income stream along with the piece of mind of comprehensive insurance cover.
Chase – Fine dining experiences
In October 2020, Chase unveiled a new experience hub, giving Chase Sapphire®, Freedom® and Ink® cardmembers access to connect with more than 4,000 restaurants and culinary experiences, including ordering takeout, with the ability to redeem points towards purchases.
In line with their ‘Ultimate Rewards’ value proposition, Chase continues to provide innovative experiences and awards that are attracting the millennial consumer.
Over the coming months, we’ll be offering insights and advice on how to leverage marketplaces. In the meantime, get in touch with us if you have any questions.