Digital platforms are now among the world’s most valuable and influential companies. Whether it’s Airbnb in lodging, Amazon in retail, Haier in home appliances,or Uber in transportation, countless platforms have developed innovative methods to connect supply and demand more intimately than ever before.
Disruptive companies like these—typically unicorn—have upended traditional business models and created new ones in their wake. They’ve consequently changed how we live, work, and play—and in the process, transformed entire industries such as healthcare, education, transportation and even real estate.
In this rapidly changing environment, leaders need to understand how platforms work and differ from traditional business models—critical knowledge for strategists wanting to compete in today’s platform economy.
The Shift From Traditional to Platform Models
The linear value chain is no longer fit for purpose in a world where customer needs and expectations constantly evolve. Thus, to remain competitive, businesses must adopt a more agile approach to value creation based on a continuous cycle of experimentation and learning. This means moving away from the linear value chain toward a more iterative and flexible model: a platform.
Platforms are unique in their ability to create value by connecting different stakeholders, including users, developers, and businesses. This ecosystem allows for a constant flow of feedback and data that can be used to improve the user experience. For example, Haier developed an open platform that allowed third-party developers to create apps and services for its products, which was incredibly successful. The company now has more than 100 million users and over 1,000 developers building apps for its products.
In the past, businesses primarily relied on closed systems, where they controlled all aspects of the value chain. However, this is no longer viable in today’s fast-paced, collaborative economy—platforms can create value by connecting people and resources in new ways, emphasizing collaboration and peer-to-peer interaction. For example, Airbnb connects people who need a place to stay with people who have space to share. Uber connects people who need a ride with drivers who have a car.
“These platforms provide value to users by connecting them with each other in new and innovative ways,” said Huda Khan, a lecturer at the University of Aberdeen, in an email. “They’re highly scalable and open, allowing them to reach critical mass quickly. And they’re built for two-sided markets, which means they can create value for users and developers.” This is why “platforms are becoming the dominant business model across industries”, according to research published by McKinsey,
Where Platforms Are Making An Impact
There are three primary platform classifications: marketplaces, social networks, and developer platforms.
Marketplaces are platforms that connect buyers and sellers. eBay is one company that recognized the value of an online marketplace, quickly rising to popularity as the go-to digital bridge for consumer goods. Facebook Marketplace and Alibaba soon joined the consumer goods space with their own platforms. Others bypass physical goods and solely focus on the digital marketplace. The Apple App Store and Google Play are top of mind in the digital goods sector, not to mention the Metaverse.
Social networks are platforms that connect people. While Facebook enjoyed dominating their category in the late 2000s, the sector was and is still highly competitive. Instagram, and LinkedIn, are now heavy hitters with their micro-focused platforms based on photo, business networking and video-sharing.
Developer platforms are a niche for many, connecting developers with the tools needed to build applications. The best-known examples are iOS and Android platforms, providing developers with the tools to build apps on their respective devices. However, no-code platforms are quickly gaining popularity, especially among b2b SaaS companies. It’s become commonplace for companies bordering unicorn status to base their entire workflows on no-code platforms like Figma or AirTable.
According to research published by the Harvard Business Review, these three classifications of platforms will upend nearly every industry by “bringing together producers and consumers in high-value exchanges.” This is observable in real estate, where consumers have experienced difficulties, confusion, and expensive logistics for many years.
Untapped Potential Ready for a Modern Platform
Research published by Grand View Research valued the global real estate market at $3.69 trillion last year. Growth is forecast at a compound annual growth rate (CAGR) of 5.2% from 2022 to 2030. Yet, as large as it may be, the industry is famously fragmented, resulting in an inefficient and time-consuming process for both buyers and sellers. However, with the advent of new digital platforms such as Unreal Estate, the process is becoming more efficient and transparent.
Unreal Estate’s founder, Kyle Stoner, said, “I started Unreal Estate because I was sick of seeing people pay incredibly high fees to brokers when it was unnecessary,” in an email. But, he continued, “I knew there had to be a better way, and I was determined to build it.”
Platform businesses like Unreal Estate can often scale quickly and reach a global audience for three reasons. First, they typically have very low fixed costs, effectuating significant value for money compared to traditional market offerings. Second, they often capture substantial user data—which can be used to improve the platform, in turn making it more valuable to its users. Unreal Estate, for example, uses data from over 30,000 homes sold on its platform to create consumer dashboards with step-by-step guidance for buyers and sellers—enabling AI to enhance the home search experience, such as providing buyer recommendations and narrowed search radii.
This has significant implications for leaders. First, to build a platform business, you must deeply understand your users and what they value. Second, you also need to be able to execute quickly and efficiently to reach a global audience. So, if you’re looking to start a platform business, or if you’re already running one, here are three tips derived from Unreal Estate to help you:
1. Focus on your users and what they value: For example, if you’re building a platform for artists, make sure you deeply understand the needs and values of your artist users. What do they care about? What do they need that isn’t being met by existing platforms? Build your platform with those needs and values in mind, and you’ll be more likely to succeed.
2. Execute quickly and efficiently: For example, if you’re building a global platform, you need to be able to execute swiftly and efficiently to reach your audience. That means having the right team in place, with the right skills and knowledge. It also means having the right infrastructure in place so that you can scale quickly and efficiently.
3. Use data to improve your platform and make it more valuable to your users. For example, if you’re building a platform for artists, use data to understand what type of content is most popular with your users. Then, use that data to improve your platform and make it more valuable to your users.
In summary, as platforms disrupt more and more industries, it’s increasingly crucial for businesses to understand how they work. Only then can they take advantage of the opportunities these new platforms present. As we’ve seen, platforms are built around a core interaction between two or more groups of users. This interaction is facilitated by some technology that allows users to connect with each other and exchange value. Platforms use network effects to grow their user base, making the platform more valuable to users. And because platforms often enjoy first-mover advantage and natural monopoly status, businesses need to keep an eye on them.
Platform businesses are changing how we live and work, and we must keep up. After all, platforms are the backbone of the collaborative economy, and the collaborative economy is the future of business.
MONTREAL – Two Quebec real estate brokers are facing fines and years-long suspensions for submitting bogus offers on homes to drive up prices during the COVID-19 pandemic.
Christine Girouard has been suspended for 14 years and her business partner, Jonathan Dauphinais-Fortin, has been suspended for nine years after Quebec’s authority of real estate brokerage found they used fake bids to get buyers to raise their offers.
Girouard is a well-known broker who previously starred on a Quebec reality show that follows top real estate agents in the province.
She is facing a fine of $50,000, while Dauphinais-Fortin has been fined $10,000.
The two brokers were suspended in May 2023 after La Presse published an article about their practices.
One buyer ended up paying $40,000 more than his initial offer in 2022 after Girouard and Dauphinais-Fortin concocted a second bid on the house he wanted to buy.
This report by The Canadian Press was first published Sept. 11, 2024.
MONTREAL – The Quebec Professional Association of Real Estate Brokers says Montreal-area home sales rose 9.3 per cent in August compared with the same month last year, with levels slightly higher than the historical average for this time of year.
The association says home sales in the region totalled 2,991 for the month, up from 2,737 in August 2023.
The median price for all housing types was up year-over-year, led by a six per cent increase for the price of a plex at $763,000 last month.
The median price for a single-family home rose 5.2 per cent to $590,000 and the median price for a condominium rose 4.4 per cent to $407,100.
QPAREB market analysis director Charles Brant says the strength of the Montreal resale market contrasts with declines in many other Canadian cities struggling with higher levels of household debt, lower savings and diminishing purchasing power.
Active listings for August jumped 18 per cent compared with a year earlier to 17,200, while new listings rose 1.7 per cent to 4,840.
This report by The Canadian Press was first published Sept. 6, 2024.
In the quest to find cities where renters can enjoy the best of all worlds, a recent study analyzed 24 metrics across three key categories—Housing & Economy, Quality of Life, and Community. The study ranked the 100 largest cities in Canada to determine which ones offer the most to their renters.
Here are the top 10 cities that emerged as the best for renters in 2024:
St. John’s, NL
St. John’s, Newfoundland and Labrador, stand out as the top city for renters in Canada for 2024. Known for its vibrant cultural scene, stunning natural beauty, and welcoming community, St. John’s offers an exceptional quality of life. The city boasts affordable housing, a robust economy, and low unemployment rates, making it an attractive option for those seeking a balanced and enriching living experience. Its rich history, picturesque harbour, and dynamic arts scene further enhance its appeal, ensuring that renters can enjoy both comfort and excitement in this charming coastal city.
Sherbrooke, QC
Sherbrooke, Quebec, emerges as a leading city for renters in Canada for 2024, offering a blend of affordability and quality of life. Nestled in the heart of the Eastern Townships, Sherbrooke is known for its picturesque landscapes, vibrant cultural scene, and strong community spirit. The city provides affordable rental options, low living costs, and a thriving local economy, making it an ideal destination for those seeking both comfort and economic stability. With its rich history, numerous parks, and dynamic arts and education sectors, Sherbrooke presents an inviting environment for renters looking for a well-rounded lifestyle.
Québec City, QC
Québec City, the capital of Quebec, stands out as a premier destination for renters in Canada for 2024. Known for its rich history, stunning architecture, and vibrant cultural heritage, this city offers an exceptional quality of life. Renters benefit from affordable housing, excellent public services, and a robust economy. The city’s charming streets, historic sites, and diverse culinary scene provide a unique living experience. With top-notch education institutions, numerous parks, and a strong sense of community, Québec City is an ideal choice for those seeking a dynamic and fulfilling lifestyle.
Trois-Rivières, QC
Trois-Rivières, nestled between Montreal and Quebec City, emerges as a top choice for renters in Canada. This historic city, known for its picturesque riverside views and rich cultural scene, offers an appealing blend of affordability and quality of life. Renters in Trois-Rivières enjoy reasonable housing costs, a low unemployment rate, and a vibrant community atmosphere. The city’s well-preserved historic sites, bustling arts community, and excellent educational institutions make it an attractive destination for those seeking a balanced and enriching lifestyle.
Saguenay, QC
Saguenay, located in the stunning Saguenay–Lac-Saint-Jean region of Quebec, is a prime destination for renters seeking affordable living amidst breathtaking natural beauty. Known for its picturesque fjords and vibrant cultural scene, Saguenay offers residents a high quality of life with lower housing costs compared to major urban centers. The city boasts a strong sense of community, excellent recreational opportunities, and a growing economy. For those looking to combine affordability with a rich cultural and natural environment, Saguenay stands out as an ideal choice.
Granby, QC
Granby, nestled in the heart of Quebec’s Eastern Townships, offers renters a delightful blend of small-town charm and ample opportunities. Known for its beautiful parks, vibrant cultural scene, and family-friendly environment, Granby provides an exceptional quality of life. The city’s affordable housing market and strong sense of community make it an attractive option for those seeking a peaceful yet dynamic place to live. With its renowned zoo, bustling downtown, and numerous outdoor activities, Granby is a hidden gem that caters to a diverse range of lifestyles.
Fredericton, NB
Fredericton, the capital city of New Brunswick, offers renters a harmonious blend of historical charm and modern amenities. Known for its vibrant arts scene, beautiful riverfront, and welcoming community, Fredericton provides an excellent quality of life. The city boasts affordable housing options, scenic parks, and a strong educational presence with institutions like the University of New Brunswick. Its rich cultural heritage, coupled with a thriving local economy, makes Fredericton an attractive destination for those seeking a balanced and fulfilling lifestyle.
Saint John, NB
Saint John, New Brunswick’s largest city, is a coastal gem known for its stunning waterfront and rich heritage. Nestled on the Bay of Fundy, it offers renters an affordable cost of living with a unique blend of historic architecture and modern conveniences. The city’s vibrant uptown area is bustling with shops, restaurants, and cultural attractions, while its scenic parks and outdoor spaces provide ample opportunities for recreation. Saint John’s strong sense of community and economic growth make it an inviting place for those looking to enjoy both urban and natural beauty.
Saint-Hyacinthe, QC
Saint-Hyacinthe, located in the Montérégie region of Quebec, is a vibrant city known for its strong agricultural roots and innovative spirit. Often referred to as the “Agricultural Technopolis,” it is home to numerous research centers and educational institutions. Renters in Saint-Hyacinthe benefit from a high quality of life with access to excellent local amenities, including parks, cultural events, and a thriving local food scene. The city’s affordable housing and close-knit community atmosphere make it an attractive option for those seeking a balanced and enriching lifestyle.
Lévis, QC
Lévis, located on the southern shore of the St. Lawrence River across from Quebec City, offers a unique blend of historical charm and modern conveniences. Known for its picturesque views and well-preserved heritage sites, Lévis is a city where history meets contemporary living. Residents enjoy a high quality of life with excellent public services, green spaces, and cultural activities. The city’s affordable housing options and strong sense of community make it a desirable place for renters looking for both tranquility and easy access to urban amenities.
This category looked at factors such as average rent, housing costs, rental availability, and unemployment rates. Québec stood out with 10 cities ranking at the top, demonstrating strong economic stability and affordable housing options, which are critical for renters looking for cost-effective living conditions.
Québec again led the pack in this category, with five cities in the top 10. Ontario followed closely with three cities. British Columbia excelled in walkability, with four cities achieving the highest walk scores, while Caledon topped the list for its extensive green spaces. These factors contribute significantly to the overall quality of life, making these cities attractive for renters.
Victoria, BC, emerged as the leader in this category due to its rich array of restaurants, museums, and educational institutions, offering a vibrant community life. St. John’s, NL, and Vancouver, BC, also ranked highly. Québec City, QC, and Lévis, QC, scored the highest in life satisfaction, reflecting a strong sense of community and well-being. Additionally, Saskatoon, SK, and Oshawa, ON, were noted for having residents with lower stress levels.
For a comprehensive view of the rankings and detailed interactive visuals, you can visit the full study by Point2Homes.
While no city can provide a perfect living experience for every renter, the cities highlighted in this study come remarkably close by excelling in key areas such as housing affordability, quality of life, and community engagement. These findings offer valuable insights for renters seeking the best places to live in Canada in 2024.
