Ariba acts as a toll gate, extracting 80% of revenue from suppliers
Christian Lanng · 20VC: How To Raise $200m In Any Economic Climate, Scale From Garage To Global In Record Time & The Biggest Startup You Have Not Heard About with Christian Lanng, Founder & CEO @ Tradeshift · Mar 24, 2017 · at 9:25
Christian Lanng, CEO of enterprise software platform Tradeshift, criticizes the revenue model of competitor Ariba during a podcast discussion on B2B software competition.
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“One of our competitors, you know, Ariba, they've for a long time gone out to these huge companies and said, hey, we will help you Digitize your supply chain, and you just got to buy our platform, and then they go and they invite all of the suppliers in the supply chain to join them, to do business with them, but they then tell the suppliers, hey, you have to pay 15 basis points of all of your trade to us to be connected, and they're not really providing any value add. They're just sitting as a toll gate between the buyer and the seller, extracting value without really doing anything, and then you have a company where 80% of the revenues is actually coming from that”
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