Platform Business Model is used to describe a company that is able to profit off of a platform where different groups (consumers and producers) interact with each other. Platform businesses do not need to manage supply chains and logistics like linear businesses and can utilize the power of an online network to help groups on both sides of the transaction make a profit. In a platform business model, the platform becomes the marketplace and the middleman in the transaction.
While its basic premise predates even the internet, Platform Business Model is a concept that is well encapsulated in the digital industry. One of the more common types of platform business in this age is eCommerce portals, social media networks, travel portals, etc.