MANY OF THE BIGGEST COMPANIES IN THE WORLD, INCLUDing Alibaba, Apple, Facebook, Google, Microsoft, News Corp., Rakuten, Tencent, and Visa, are matchmakers. So are many of the most exciting and valuable start-ups, such as Airbnb, BlaBlaCar, Didi Kuaidi, Flipkart, Lending Club, Pinterest, Spotify, and Uber. What these businesses have in common is that they all connect members of one group, like people looking for a ride, with another group, like drivers looking for passengers.
Matchmakers are very different from the businesses that have been the staple of college economics classrooms and MBA lectures for decades. They operate under a different set of economic rules. Traditional manufacturing businesses, for instance, buy raw materials, ...
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