A Multisided Value Proposition Canvas for Online Platforms

Abstract

Operators of digital platforms have to convince potential users that their intermediation and matchmaking services bring additional value in the market. To do so, they need to formulate a strong value proposition, which convinces users that joining the platform brings them larger value than staying out. In recent years, a number of frameworks have been developed to help entrepreneurs reflect on which elements should be included (or not) in their value proposition. In this paper, the authors argue that such tools do not necessarily offer a satisfactory answer, as they miss the specificities of platform-based business models. Hence, they propose an alternative tool that overcomes the limitations they identified and is more appropriate for nascent multisided platforms. They argue that it is crucial to identify the complementarities and potential conflicts between the wants, needs, and fears of the different groups of users that the platform connects, so as to formulate a set of interlocked value propositions.