Latinum AI
Back

Solving the Cold-Start Problem ๐Ÿฃ

11/05/2025

7 min read

Share

preview

Guide to Build a Chicken Without Eggs ๐Ÿฃ

Personal AI agents are coming. Theyโ€™ll book our flights, reorder our groceries, and schedule our haircuts.

But thereโ€™s one problem:

Merchants have no tools to sell to AI agents โ€” and customers wonโ€™t shop with agents if thereโ€™s nothing to buy.

Classic chicken-and-egg.

At Latinum Agentic Commerce, weโ€™re building the middleware layer that lets AI agents transact directly with traditional businesses. But to get there, we need to crack the hardest part: the cold-start problem.

So we studied the real-world pioneers โ€” to decode how they solved it:

CategoryDominant Marketplaces
๐Ÿฝ๏ธ RestaurantsOpenTable, TheFork, Resy
โœ‚๏ธ Barbers / SalonsFresha, Phorest, Barespace, Vagaro
๐Ÿš• Taxi / RideshareUber, Lyft, FreeNow
๐Ÿ›ต Food DeliveryDeliveroo, DoorDash, Uber Eats
๐Ÿ›๏ธ HotelsBooking.com, Expedia, Agoda
โœˆ๏ธ FlightsAmadeus, Sabre, Skyscanner, Google Flights
๐ŸŽŸ Events / TicketsTicketmaster, Eventbrite
๐Ÿง˜ Fitness / WellnessMindbody, ClassPass, Gympass
๐Ÿก Home ServicesThumbtack, Angi, TaskRabbit
๐Ÿ“ฆ MarketplacesAmazon, eBay, Etsy
๐Ÿ“š BooksGoodreads (discovery), Amazon (commerce)
๐ŸŽจ Creative ServicesFiverr, Upwork
๐ŸŽฎ Games / AppsSteam, App Store, Google Play
๐Ÿ‘จโ€โš•๏ธ HealthcareZocdoc, Doctolib, Healthgrades
๐Ÿง‘โ€๐Ÿซ Tutors / CoachesSuperprof, Wyzant, Preply
๐Ÿ›  Freelance / SaaSAirtasker, Worksome, Toptal

Hereโ€™s what we learned.๐Ÿ‘‡


๐Ÿ”น 1. Supply First โ€” Only If You Solve a Real Pain

Most successful platforms didnโ€™t start by chasing users.

They started by solving operational headaches for suppliers.

๐Ÿช‘ OpenTable gave restaurants software to manage tables.
โœ‚๏ธ Fresha gave salons free scheduling and POS.
๐Ÿฉบ Zocdoc made it easier for doctors to fill their calendars.

Give before you get.
Start with SaaS โ€” build the marketplace later.

๐Ÿ”น 2. Fake the Inventory Until You Make It

No supply? No problem. Fake it.

๐Ÿฝ DoorDash scraped menus before signing restaurants.
๐Ÿ› Booking.com listed hotels manually before onboarding.
๐Ÿ”ง Thumbtack filled out pro profiles from Yellow Pages.

Simulate liquidity.
Then convert it into the real thing.

๐Ÿ”น 3. Use Demand to Pull in Supply

Donโ€™t pitch โ€œcool software.โ€
Pitch customers, revenue, and traffic.

๐Ÿฉบ Zocdoc told doctors, โ€œWe already have patients looking for you.โ€
๐Ÿš• Uber paid drivers before riders existed.
๐Ÿจ Booking.com showed hotels live user searches.

Lead with value, not tech.

๐Ÿ”น 4. Start Hyper-Local

Every marketplace you know started small.

๐Ÿš• Uber: one city at a time.
๐Ÿฝ OpenTable: restaurant by restaurant.
๐Ÿ  Thumbtack: ZIP code + service vertical.

Density wins.
Local trust = faster matches = real network effects.

๐Ÿ”น 5. Turn Supply Into a Growth Engine

The best supply-side users bring their own demand.

๐ŸŽŸ Eventbrite: organizers share their own events.
๐Ÿง˜ Mindbody: studios embed booking tools on their site.
๐ŸŽ“ Preply: tutors promote their own profiles.

Let your suppliers become your marketing team.

๐Ÿ”น 6. Build Trust Like Your Life Depends On It

No one transacts in a marketplace they donโ€™t trust.

โœ… Zocdoc: verified reviews, insurance filters.
โœ… Booking.com: instant confirmation, cancellation.
โœ… Fiverr: transparent ratings and seller videos.
โœ… Uber: driver tracking, two-way reviews.

Trust isnโ€™t a feature โ€” itโ€™s the product.

๐Ÿ”น 7. Monetize Later

Nobody wants to pay for something that doesnโ€™t work yet.

๐Ÿ’ฐ Uber, Zocdoc: subsidized one or both sides.
๐Ÿ’ฐ Eventbrite, Fresha: charged only when money was made.
๐Ÿ’ฐ Fiverr: took a cut, but only after the deal was closed.

Prove value. Then charge.

๐Ÿ”น 8. Design Like Itโ€™s a Product, Not Just a Platform

Product quality isnโ€™t just UX polish โ€” itโ€™s growth strategy.

๐Ÿง  Booking.com mastered CRO: urgency tags, smart filters.
๐Ÿ“ฒ Uber: magic UX โ€” tap a button, car appears.
๐Ÿง‘โ€๐ŸŽจ Fiverr: freelancing as product cards.
๐Ÿฉบ Zocdoc: filter by insurance in seconds.

Design = retention โ†’ scale โ†’ supply โ†’ dominance.

๐ŸŒ€ The Cold-Start Flywheel

Hereโ€™s how the real winners lit the spark โ€” and kept it burning:

  1. Solve a real pain for supply
  2. Simulate demand or inventory
  3. Trigger real demand (SEO, promos, referrals)
  4. Use demand to win supply
  5. Add trust and frictionless onboarding
  6. Focus deeply on one niche
  7. Build viral loops from supply
  8. Monetize only after delivering value

If youโ€™re building in AI commerce, remember:

You donโ€™t need both sides to start.
You just need the chicken ๐Ÿ” โ€” the egg will follow. ๐Ÿฅš

If you want to dig dipper checkout the whole list of case studies..


๐Ÿ“š Essential Reads on Cold Start & Marketplaces

1. The Cold Start Problem โ€” Andrew Chen

How platforms ignite network effects from zero.
Case studies: Uber, Tinder, Zoom.

2. Platform Revolution โ€” Parker, Van Alstyne, Choudary

How marketplaces work: supply/demand balance, governance, monetization.

3. Blitzscaling โ€” Reid Hoffman

Scaling fast once cold start is solved.
Focus: LinkedIn, Airbnb, Dropbox.

4. The Lean Marketplace โ€” Makkonen & Gracia

Bootstrapping both sides of a marketplace.
Written by Sharetribe founders.

5. Hooked โ€” Nir Eyal

Building habit-forming products.
Crucial for retention after activation.

6. Matchmakers โ€” Evans & Schmalensee

Economic lens on platforms.
Cross-side network effects and pricing models.

Logo

Latinum.ai

Agentic Commerce

ยฉ 2025 Latinum. All rights reserved.