How the Best Marketplaces Decide Which Side to Subsidize

Building a two-sided marketplace means deciding which side to subsidize first. In this episode, Lucas and Luna break down the economic logic behind the decision, using real examples: why OpenTable paid restaurants for diners, why Uber subsidized drivers early on, and why Airbnb let supply grow organically before paying for demand. They explain the concept of 'price elasticity' across sides and introduce a simple rule of thumb—subsidize the side that's harder to acquire. Listeners learn how to calculate acquisition cost per side and how the best marketplace operators use data from the first thousand transactions to set subsidy strategy. No theory without practice: the hosts walk through a hypothetical vertical marketplace and decide which side gets the discount and why. #Marketplace #TwoSidedMarket #Subsidies #Liquidity #TakeRate #Uber #OpenTable #Airbnb #Etsy #BusinessStrategy #NetworkEffects #GrowthHacking #Startup #AcquisitionCost #PriceElasticity #FexingoBusiness #BusinessPodcast #BusinessAndTechnology Keep every episode free: buymeacoffee.com/fexingo