What is an aggregator business model?

It is a networking e-commerce business model where this firm, known as an aggregator, brings together, at one place, information and data about a particular good or service offered by several competing providers.

How do aggregators work?

It happens by offering a wide variety of options in one place. Unlike traditional business models, aggregators act as intermediaries that connect customers with service providers or sellers. Usually, traditional business models rely on owning the inventory they sell.

How does platform economics explain aggregators?

Platform economics neatly explain aggregators, and these theories date back 50 years. The features of digital technology that enable the aggregator business model. Digital enables aggregation models to scale because of the following reasons: Direct access to consumers across multiple channels at scale ( Marketing ).