The battle for the mobile internet is being fought “OFFLINE” and the battle is for “Offline Inventory” that connects to “Mobile-Centric Markets”. The API for the next battle is hyperlocal marketplaces where the API is all around “Inventory”
This is the reality. Marketplaces are eating industries and this is only the beginning. Hundreds of billions of dollars are going away and up for grabs. However what was really the marketplace 1.0 decade from 2000s to now was really “brokers” who aggregated demand and supply and leveraged broken information in markets due to the basic inefficiencies around Cost to Price. That was good enough to create the Google, Alibaba, Amazon, eBay, etc. But 2.0 is just about to begin and marketplaces will eat industries again with the most critical industries and regions of the world that have have very similar dynamics.
MCOMMERCE – FIRST MILE NEXT MILE AND SOFTWARE EATS HARDWARE
Let’s start with Google. While most people see Google as a search engine, it’s really a crowdsourced marketplace company that leverages hundreds of millions of people searching for something to drive it ad marketplace engine connecting fragmented MSMEs to reach consumers! Whole ecosystems are reconnecting and industries in this case the ad industry was eaten!
So why are marketplaces are eating industries!
1. Current business models across industries are built for “Centralization”
2. Fragmentation has created hyperlocal opportunities that large businesses and current business models cannot leverage
3. High density of population in the First Mile (Last Mile)
4. Markets are broken across the valuechain and profit pool
How iTunes crushed music sales
After Apple’s iTunes Music Store debuted on April 28, 2003, sales of 99-cent digital singles surged. But that had a disastrous impact on overall music revenue.
HOW TO DISRUPT THE MARKETPLACE LIKE BEYONCE
Alibaba’s S$600b marketplace set to expand China’s e-conomy
Software Eats Meat: AgLocal Disrupts The Food Industry From Farmer To Fork, Launches In NYC With 20 Celeb Chefs On Board
Not just companies but whole industries are being eaten. Alibaba eating large players, Google in the ad industry, Amazon retail, eBay with auctions, the list goes on. However what is really interesting is that the next cycle for marketplace opportunities are “Hyper” as a prefix.
This is where the disruptive opportunities are emerging and just the embryonic phase prompting companies like Greylock
As Marketplaces Evolve, Greylock Places Its Bets
Look at the beginnings, Uber, Airbnb, Premise Data, Climate Corp, et al.
What will be the central cornerstone of the 2.0 marketplaces? Inventory Stock turns?
THE MOST VALUABLE COMPANIES – MOM AND POP STORES, POSTAL SERVICES AND DABAWALLAS IN MUMBAI
Companies that actually capture hyperlocal inventory and map to hyperlocal demand-supply will be the winners. This is what has just begun and it’s all around “mobility”, “omnichannel” and a combination of Sensors + Analytics + Insights 2 Commerce.
Now you know why Monsanto paid around $1B for Climate Corp.
The $1 billion weather app: why Monsanto is betting the farm on smarter forecasts A billion-dollar acquisition plants the seeds for an agribusiness revolution
450M SMALLHOLDER FARMERS AND A $450 BILLION MARKET! IT’S ALL MOBILE, SENSORS, ANALYTICS AND MARKETPLACES.
It is then clear that traditional cost to price discovery is over and the next cycle will probably eat the marketplaces themselves. Are you next?
- There will be blood: WeChat’s payments prowess makes it a target for Alibaba (pando.com)
- Alibaba vs Amazon (valdiviafederico.wordpress.com)
- Alibaba IPO could raise $18-25B on $110B valuation, company’s growth ‘meteoric’ (venturebeat.com)
- The next “mobile” is the “Auto-Mobile” & Detroit the next Valley? (gerardjrego.com)
- 450m smallholder farmers and a $450 Billion market! It’s all mobile, sensors, analytics and marketplaces. (gerardjrego.com)
- Online marketplaces are transforming every industry (thoughtsbykcli.wordpress.com)