Which statement best defines a multi-sided platform (MSP) business model pattern?

• A. A model that creates value as an intermediary between interdependent user groups and must attract multiple sides to work.
• B. A model that serves a single customer segment with a standardized product.
• C. A model that relies on subscription revenue from a single market.
• D. A model that removes all intermediaries to sell directly.

Answer: (B)

A multi-sided platform creates value by connecting two or more interdependent user groups and must attract several sides to function effectively. The defining feature is acting as an intermediary that coordinates interactions between distinct groups—think buyers and sellers, developers and users, or riders and drivers. The platform’s value grows as more participants on both sides join, generating network effects that make the platform more attractive and worthy of participation for everyone involved.

This is why the statement that best defines the MSP pattern emphasizes the intermediary role and the need to attract multiple sides. The other ideas describe more traditional or single-sided models—serving one customer segment with a standardized product, relying on a subscription from one market, or removing intermediaries to sell directly—that don’t capture how MSPs create value through cross-group coordination and network effects.