At the center of a wheel, or at the center of an organization, group or activity, by definition is the hub. Justifiably so, companies have started (ok, a while ago) to use that term in their name. GrubHub, StubHub, HubSpot… they all bring two parties – buyers and sellers or professionals and amateurs – together.
Aggregate, consolidate, collect.
Clients on both sides of the center. Buyers and Sellers. Professionals and Amateurs.
Their seller client uses someone else’s app – paying a fee of some valuable percentage to access the collective’s (already) captured customers. The seller thinks it is reasonable to pay 5-20% (sometimes more, in addition to a flat transaction fee) to take advantage of the advertising and marketing dollars already spent by the collective to attract buyers and people looking to learn.
The buyer clients, they can use one app vs. having to join hundreds; they get discounts or bonus services or just added convenience. They learn about the great new spot that opened, or the tickets available for the hard to find get concert or lots of fun social media information. They don’t (probably) know that the restaurant is really paying a lot… a lot more than they would pay a staffer to take down your order and take your payment at time of pick up or delivery.
Perhaps you never would have found out about them unless for that little app sending you an ad for today’s special…so it’s a judgement call. Is it worth it? Maybe.
While they may not have it down pat 100%, they have something… if only using “the hub” in their name. So, that is at least something they did well. Hats off to them. 😉
~ Dawn aka Hat Girl