Canada ranked in the top 10 marketplaces for expansion on Hyperwallet’s inaugural 2018 Marketplace Expansion Index.
The global payout platform, which provides organizations with support in distributing funds to global contractors, suppliers, and resellers, compared 209 countries to determine the top 36 countries that marketplace companies, like Uber, should expand to next year.
“If supportive regulations are put in place, Canada’s great logistical and payment infrastructure will make it a very attractive destination.”
“With most of the population concentrated in a few urban cities, Canada makes it easy for on-demand companies to scale quickly. However, lack of clear governmental support for marketplaces remains a challenge. For example, Uber recently announced that they would pull out of Quebec rather than face new driver regulations,” the report said. “If supportive regulations are put in place, Canada’s infrastructure will make it an attractive destination for international marketplace expansion.”
The data collected by Hyperwallet analysts narrowed the field to just 55 countries of interest. These countries were then assigned to one of three tiers: Established (countries 1-12), Emerging (countries 13-24), and Evolving (countries 25-36). The goal behind this initiative is to provide digital marketplace platforms with data that they can use to inform their business decisions.
Canada was given the eighth position, right after Australia. The report attributes this ranking to the country’s top-tier payment and logistics infrastructures, and the consumer demand for on-demand/marketplace services.
The report also outlined disadvantages, like the large geographic area, low population in rural areas, and uncertainty about government regulation.
“Vancouver, for example, remains one of the last large cities in North America that has not introduced ridesharing services. At this point, there is very little domestic competition that global marketplaces need to stave off,” the report reads. “If supportive regulations are put in place, Canada’s great logistical and payment infrastructure will make it a very attractive destination for international marketplace expansion.”
See the full report here.
Photo via Greater Vancouver Board of trade.