What is Platform Economy?
‘Platform Economy’ refers to the tendency of commercial solutions to move towards digital platforms to conduct their business. Here, the word ‘platform’ is used to denote the computer systems used to host the services that allow consumers and sellers to connect via a virtual marketplace and conduct their business.
The three most common types of platform economies are:
- Transaction Platforms: It is basically an online marketplace where people buy and sell stuff.
- Innovation Platforms: It is used to provide IT infrastructure and other technology frameworks.
- Integration Platforms: It is the combination of transaction platforms and innovation platforms.
The platform economy has caused a stir by changing the landscapes of various markets as well as the jobs related to those markets. It has also disrupted the traditional retail markets while also building on the core foundations of the same.