high barrier for the entry of new competitors. This is mainly due to the network effect between Clients and Professionals, given that the absence of one of the parties in sufficient quantity prevents the growth of the other, as well as prevents the organic absorption of new Clients, which is driven by scale and market recognition.
The more the Professional interacts with the platform, the more we learn about their preferences and behaviors. In this way, we manage to increase the assertiveness of the Professionals we refer to Clients. With our extensive knowledge acquired about the different categories and regions in which we are present, we were able to optimize our strategy of pricing in order to improve our margins and our take rate.
Pricing is completely personalized, each category has a base price that was defined using as a strategy the information that Clients provide us on the fee for performing services, the amount paid for services and the margin expected by the company.
In addition to the base price, we work on several algorithms that allow adjustment of this customization to make it more assertive. Geolocation is an important parameter in pricing, both at the regions, as well as cities and neighborhoods. Another important factor is the visualization of services.
As with Professionals, on the side of contracting Clients, we also seek to guarantee quality service. For this, we rely on proprietary algorithms that operate to increase the chances of success in trading. If no Professional is interested in the request, we use machine learning solutions to predict sales probabilities, assign scores to orders and direct these Customers to Professionals, free of charge.
The Company’s main growth strategy is to expand its Professionals base. It is believed that with a larger base, the platform can provide a greater range of solutions, expanding the concept of services marketplace. With this, the platform can be fed with a greater amount of reviews, which stimulates the quality of the services provided.