A hybrid platform combines two platform types. One part is an innovation platform that outside developers build on. The other is a transaction platform where users buy, sell or exchange. Each part needs different rules, and each makes the other more valuable.
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Types of hybrid platform
- Innovation platform adding a marketplace: a firm whose technology others build on opens its own store, to keep control of distribution and the customer.
- Transaction platform opening to developers: a marketplace or social app opens its interfaces so outsiders can add services.
Key factors
- Separate rules for each part. Developers need stable tools and fair access, while buyers need ratings, refunds and dispute handling. Each part needs its own policies, fees and measures of success.
- The order of building. The first part should work well, with enough buyers and sellers or enough apps, before the next is added.
- How closely the parts link. Some hybrids tie building and trading tightly together. Others run them as separate businesses under one owner.
- Competition inside. The owner’s own products may compete with the outside firms it hosts, which strains trust.
Examples
WeChat. Tencent’s WeChat lets developers build mini programs, small apps that run inside WeChat, using its tools and payment system. Users then shop, book and pay through them without leaving the app. Tencent said in 2023 that mini programs had more than 1.1 billion monthly users.
Salesforce. Developers build business apps on the Salesforce Platform, using its tools and customer data. Salesforce then lists those apps for its customers on AppExchange, its marketplace, which has more than 9,000 listings. It is an innovation platform that added a marketplace.
Frequently asked questions
What is the difference between a hybrid platform and a multi-sided platform?
A multi-sided platform serves several user groups. A hybrid platform runs two platform logics, building and trading, and each of those can serve several groups.
Why do platforms become hybrids?
Each type strengthens the other. Developers want a ready market for their products, and buyers want the wider choice that outside developers create.
Are most large platforms hybrids?
Many are. Platforms often start as one type and add the other as they grow, for example a software firm that later opens a marketplace for add-ons.
Do hybrid platforms last longer than other platforms?
There is some evidence they do. In one study of platforms that failed between 1995 and 2015, hybrids lasted 7.4 years on average before failing, against 4.5 years for transaction platforms, though only 14 hybrids were in the sample.
Full guide: Types of platforms