What is the Aggregator Business Model?
Of course most of us are familiar with aggregators of different stripes – Seamless, Caviar and others for purchasing food, Expedia, Booking.com, and more for travel.
What Do These Aggregators Do?
Broadly speaking, aggregators provide connections between producers and consumers with a uniform experience for consumers to consume. Another familiar example is Amazon.com for which consumers are people ordering items to be delivered, and producers are sellers of goods. Netflix has streaming subscribers as consumers and movie and tv creators as producers. Spotify is similar for audio. Google has searchers as consumers, and those wanting their content to be found as producers. (And AdWords purchasers are their paying customers).
Outside of technology, funds in financial services have an aggregator structure with investors as consumers and companies as producers of equity. Department store retailers are also aggregators.