Like most of us, I am always in a lookout for the latest trends and inventions, be it a new theory or a new gadget. I remember, when Uber was first launched, I ended up feeding hungrily on every piece of information and news I found on internet. Its business model was out of the box, and I knew that the (then) startup and its concept had the power to revolutionize the world we were living in.
One such déjà vu happened with me yesterday, when I came across an article on VentureBeat ‘Andreessen Horowitz shares the 16 tech trends it’s most excited about’. And I knew that I had to share it with you guys. It discussed about the the list of 16 things, known as 16z, which are destined to change the world. Take a look at them.
Out of the 16 trends, two that caught my interest are Online Marketplace and The Full-Stack Startup. Take a look at them.
The Full Stack Startup
Chris Dixon, an Internet Entrepreneur and General Partner at Andreessen Horowitz, defined a Full Stack Startup as a new approach in which a startup “builds a complete, end-to-end product or service that bypasses incumbents and other competitors”. For example: Uber. The company gave tough competition to large and decades old Taxi Companies with its simple on demand mobile app. According to Dixon, these companies ‘capture greater portion of economic benefits and deliver a much better experience to the end users’.
Jeff Jordan, Venture Capitalist at Andreessen Horowitz, pointed the similarities between a Perfect Competition and Online Marketplace in the most interesting way. He said, “today’s new marketplaces must nurture and manage perfect competition to thrive”. With his past experience as a Vice President and General Manager of a renowned online marketplace, eBay, he explained the following theory about an Online Marketplace:
- All sellers offer identical goods (exception: sellers with an exclusive tag attached to them)
- Sellers are the price takers, as buyers decide the price they wish to pay (exception- sellers with good brand reputation)
- All sellers have limited meaningful market share, as there are number of them across all the categories
- Buyers enjoy transparency as they have full access to all the information like prices, specifications, seller details, etc.
- There are low barriers of entry and exit for buyers and sellers, hence maintaining an equilibrium in the marketplace.
Like Andreessen Horowitz noted, “We don’t invest in themes; we invest in special founders with breakthrough ideas,” Juggernaut follows the same path of powering on demand Startups and Online Marketplaces with our customizable technology solutions and expertise. Get in touch with us today, and give wings to your idea.