What Is The Aggregator Business Model & How Does It Work?

Aggregator Business Model

To meet the ever changing demands of the market, many businesses are now shifting their approach and working towards the Aggregator Business Model, which is one innovative business model which addresses the vast preferences and choices.

Aggregator Business Model

This business model has helped many businesses to sustain in the market and cater to a wider base of customers. In this article, we’ll discuss the intricacies of this model.

1. Aggregator Business Model 

 It is a type of business model that lets businesses connect to multiple providers of a service or a product. 

This business model is also being referred to as the on-demand business model, as it lets customers access various services and products at one place and at any time. 

It is a network which brings many services providers, product providers, or vendors on a single platform, under a single brand name on a single platform.  

  • The platform then helps those various onboarded facility providers to easily connect with different customers. 
  • The aggregator business or a firm, collects information about particular offering service and product providers, signs contracts with them, and then sells their services under its own brand.
  • The aggregator business then takes a commission on each transaction and service that takes place on its platform. 
  • For example, Uber, Ola, and Airbnb. 

(1.2) Types of Aggregators 

Travel Aggregator Model: Businesses which work on this business model, makes travel related services available at one place, be it in the form of a website or an app. It  searches multiple websites for discounts and offers and displays the results at one platform.

Taxi service aggregator model: This model is widely adopted by the taxi businesses which offer various on-demand taxi  services at one place from many options to choose from. One classic example of it can be the Uber services, which offers both personal as well as shared taxis.like, Uber takes over and looks after the services of the drivers and refers clients to them.

Apart from it, Google is also one of the well known aggregators in the market, which acts as a search aggregator that collects and displays information and content from multiple industries and then utilizes it to provide relevant and valid  information to users. 

2. Methodology

This business model works on some simple steps- 

Step 1 – The aggregator company or the brand forms a platform that collects all the data.

Step 2 – After collecting the information about various service and product providers, the aggregatory company reaches out to them and offers a partnership plan. The plan includes all the details of the contract and how the aggregator business will help the product provider to increase its business.

Step 3 – After the contract or the deal is signed, the aggregator business uses multiple strategies and campaigns to attract customers. 

Step 4 – The customers avail various services through the aggregator’s platform. All of which provides easy access to them to experience various services in one place.

3. Revenue Sources

The brand or the company operating on an aggregator business model earns its income via commissions on the transactions or the purchase made on their platform. The amount of percentage to be charged varies from business to business and is set on the number on which both the parties would agree, and can change overtime by looking at the business growth overtime. 

4. Benefits

Here are some of the benefits that would be beneficial for the businesses, service providers, and also for the customers. 

(4.1) Easy Access: The customers save all their time and energy by accessing all the services or the products at one platform, instead of wasting their time on comparing things, discussing etc. Not only this, it also helps the businesses to have a wider reach and more growth. 

Types of aggregator business model

(4.2) Cost-Effective: As almost every business has started operating on this business model, it gives rise to the high end competition between the aggregators, which all results in some heavy deals, offers, and discounts.

(4.3) Time-Saving: The aggregator businesses or the websites help in looking at various options, helps to compare them, buy them, etc. in a very short span of time. 

5. Summing Up

The aggregator business model provides a dynamic approach for meeting changing consumer needs and preferences and also to have a better share of the market. By making diverse services and products available at one single platform, this business model has opened many opportunities for businesses to grow and enhanced convenience for the consumers. However, right implementation of this business model requires careful research and navigation of the market trends.  

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Published By: Aashita Singh
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