(2016-02-01) How Aggregation Theory Is Fueling A Multitrillion Dollar Technology Revolution

How ‘Aggregation Theory’ is Fueling a Multi-Trillion Dollar Technology Revolution

Before the internet, distributors were kings in any industry due to the fact that offline distribution of any good or service from the ‘makers’ to the subsets of global consumers that were willing to pay for said good or service was a particularly complex task

Over the last two decades, the distribution chain for most goods and services have been redefined end-to-end. The distributor’s role in the chain has been commoditized. ‘Makers’ can now bring their goods and services direct to consumers.

The best Aggregators effectively connect supply with demand in the most effective way possible. They bring value to the suppliers by removing the overhead of direct internet distribution, making supply much more discoverable while also giving suppliers significant control over the manner in which goods, services or content is surfaced to end consumers. The value for the end consumer is a simplified UX, designed with a primary goal of reducing the net number of steps it takes a consumer to discover the specific goods, services or content that they seek on a platform.

10 most valuable public consumer internet companies by market cap as of August 2015.

every single one of them is an online aggregator

The second step is really about fine tuning the user experience to effectively delight consumers in ways that offline distribution channels cannot

The third step is where vertical domination sets in.