The Review Of Disintermediation Strategies In Two Sided Marketplace

Two-sided marketplaces are the type of companies that connect external parties starting from ― vendors such as a seller, host, and driver, and at the same time customers such as buyer, renters and service user, to interact and transact inside the marketplace they had developed. This kind of marketplace often risk disintermediation which happens when users may rely on the market to find the potential problems related current and future transactions without the platform‘s involvement, paying any fees, and the platform may charge. This paper assesses all of the factors that trigger disintermediation happened in the marketplace, how sensitive the price fee or premium determines the level of potential disintermediation might occur, and also a set of strategies that can implement to reduce it. Furthermore, the theory used in assessing these factors includes Customer Lifetime Value, Customer Relationship Management, and Disintermediation theory. The arguments have led this paper to choose the recommendation to the research question as immediately assess the kind of disintermediation occur; other psychological factors can be the solution or ways to better shaped the platform, and always learn the pain point of buyer and seller.