Earlier this month Hyperwallet, a US-based payment solution provider, released its 2018 Marketplace Expansion Index. Intended for “gig economy” startups, ecommerce marketplaces and social selling companies, this report aims to identify the countries offering the most favorable conditions for marketplace expansion.
No fewer than 209 countries were compared across 10 key indicators like infrastructure, e-commerce activity, foreign competition and workforce. Russia ranked #35 due to its large market size and acceptance of newer economic models. “Not only do digital marketplaces offer cheaper avenues for Russian consumers, they have also emerged as viable sources of income through online exchanges like YouDo.com, which grew six-fold from 2015-2016,” note the Hyperwallet analysts.
Sharing economy models are not regulated, and newer economic models are widely accepted in Russia, asserts the report in a perhaps simplistic way, which creates favorable conditions for marketplaces.
On the negative side, the report underlines the relative weakness of the logistic and digital payment systems, the lack of freelance employment opportunities and Russia’s low ranking for “ease of doing business.”
The geographic vastness of the country has also limited success to service-based marketplaces operating in urban areas, according to the report.
In an exchange with East-West Digital News, YouDo.com’s founder and CEO Alex Gidirim commented the report as follows: “Market conditions are changing consumption patterns and the ways people generate income. The economic crisis and the sanctions only accelerated these changes, as witnessed by YouDo.com’s experience over the past few years. Our platform already attracts 430,000 verified individual service providers – a 14-time increase over the last 24 months.”
Due to the absence of middlemen and the use of sophisticated machine learning technologies, YouDo.com allows its users to find providers in a cheaper, faster and more convenient way, says Gidirim.
