Aggregators and Types of Aggregators
Owing to the prevalence of digitalisation in the 21st century, many new concepts have flooded the business environment. Hundreds of websites publish an astonishing amount of information every day, which is shared and accessed from the internet. The Internet and its universality have made way for a unique concept called business aggregator.
By the term ‘aggregate’, we mean the act of amalgamating or combining something into one. Thus, an aggregator is someone who renders the service of collecting, compiling and providing similar as well as a relevant informant on a particular website. It can be an internet site or an app.
It is because of an aggregator that internet users can find the information they are looking for in a matter of seconds. Here, an aggregator works to find all the homogenous or similar content on a particular topic and then amalgamates it to provide a relevant result to the user.
Digital marketing is booming worldwide. Almost every company, brand, association, or initiative have their website to reach out to the customers and target audience. Advertising or promotion requirements are also carried on through the websites. So, if a customer is looking for any particular information, he might have to search for all the relevant pages to find an answer. Here an aggregator comes to the rescue. It narrows down the search process to help a user get access to what they are exactly looking for.
Now, depending on the requirements of a particular sector, the nature and task of compiling any information may vary. This is the reason why we have different types of aggregators functioning today.
Different Types of Aggregators
If you delve into the digital market, you will find the following kinds of aggregators assisting you in finding the relevant information:
Service Aggregators
Service aggregators are the ones which render homogenous or similar services. This also applies to the ones who operate through an application. Service aggregators reach out to businesses or entities on their website and enable customers to avail the facilities from their application/website.
Online cab applications can be considered as a case of such aggregators. These applications help connect the taxi drivers and riders.
News Aggregators
News aggregators can also be called feed aggregators in terms of computing. It could be a web application, software, or website which aggregates information from newspapers, blogs, news channels, e-papers, videos, sites, etc. It compiles all the relevant or similar information into one page so that the user can read it conveniently.
The absence of news aggregators could make the task of reading news quite troublesome. This is because an individual would then have to visit several websites to find the information he or she is looking for. This sort of aggregators usually makes use of the RSS (an acronym for RDF Site Summary) technology to combine and compile fresh information. Scribd, Huffington Post, Google News, etc. can be cited as examples of a news aggregator.
Social Media Aggregators
Social aggregators are those applications or websites which aggregate information from social media sites like Facebook, Instagram, Twitter, and so on. The collected data or information is then displayed live on their app or website. Social media aggregators offer a great way to create brand recognition, promote a new company or product, and make it a trend on the internet. Twine Social, Curator, etc. are well-known social aggregators.
Video Aggregators
YouTube can be identified as the most popular platform to access and watch videos. But the number of videos published on it every day is huge. This is where video aggregators play their role. They compile similar kinds of videos available on a platform to help users find what they are looking for. Daily Tube is another example of a video aggregator.
Online Shopping Aggregators
Many shopping websites and applications now operate on the internet, selling a wide range of products. The number of customers shopping online has also risen rapidly in recent times. Shopping aggregators come in to ensure an easy and convenient online shopping experience to the customers. It displays all the similar products in one place so that customers do not have to visit multiple websites.
FAQs on What Are Aggregators?
1. What is an aggregator in the context of business?
In business, an aggregator is a company or platform that collects information about various service providers, partners with them, and sells their services under its own brand name. The key characteristic is that the aggregator does not produce the goods or own the assets for the service; it simply provides a unified platform for customers to access these services in a standardised way.
2. What are the main types of aggregators with real-world examples?
Aggregators operate across various industries. The main types include:
- Service Aggregators: These platforms connect customers with service providers for services like transportation or food delivery. Examples include Uber, Ola, Zomato, and Swiggy.
- News Aggregators: They compile news and articles from various online sources into one convenient location. Examples are Google News and Inshorts.
- E-commerce/Shopping Aggregators: These help consumers compare products, prices, and services from different retailers or providers. Examples include Trivago for hotels and MySmartPrice for electronics.
- Social Media Aggregators: These tools collect content from multiple social media channels and display it in a unified feed, often used for marketing campaigns.
3. Why is a company like Uber considered a classic example of an aggregator?
Uber is a classic aggregator because it perfectly fits the business model. Uber does not own the cars nor does it directly employ the drivers. Instead, it acts as a technology-driven intermediary that:
- Connects independent drivers (service providers) with riders (customers).
- Sets service standards, pricing, and quality guidelines.
- Markets the service under a single, powerful brand name: Uber.
The entire customer experience is controlled and standardised by Uber, not the individual driver.
4. How does an aggregator business model generate revenue?
An aggregator business model primarily generates revenue through commissions and fees. The most common methods are:
- Commission Fees: Taking a percentage of the total transaction value from the service provider for every customer acquired through the platform. For example, Uber takes a cut from every ride fare.
- Listing or Onboarding Fees: Charging service providers a one-time or recurring fee to be listed on the platform.
- Advertising and Promotions: Offering premium placement or visibility to service providers who want to stand out on the platform.
- Subscription Models: Offering premium features or benefits to customers for a recurring subscription fee, like Zomato Gold or Swiggy One.
5. What is the key difference between an aggregator and an online marketplace?
The key difference lies in branding and standardisation. An aggregator sells services from various providers under its own single brand, ensuring a uniform quality and price (e.g., an Ola ride is an Ola experience). In contrast, an online marketplace (like Amazon or Flipkart) is a platform where different sellers list their products under their own brand names, and the quality, price, and customer experience can vary from seller to seller.
6. What is an Account Aggregator (AA) in the Indian banking system?
An Account Aggregator (AA) is a type of financial technology company regulated by the Reserve Bank of India (RBI). Its primary role is to help individuals securely share their financial data between different financial institutions. It does not process transactions but acts as a 'consent manager' for data sharing. For example, you can use an AA to securely and digitally provide your bank statements from one bank to another bank when applying for a loan, without needing to share physical copies or login credentials.
7. What are the main advantages of aggregator platforms for both customers and service providers?
Aggregator platforms offer distinct benefits to both sides of the transaction:
- For Customers: The primary benefits are convenience (accessing many providers on one app), price transparency, predictable quality standards, and trust in a single brand.
- For Service Providers: The main advantages include access to a wider customer base, reduced marketing costs, access to technology without building it, and streamlined payment processing.
