|When an entrepreneur sees a consumer need and sells a buyable solution, product market fit has been identified.
Product Market Fit refers to the market demand for a product. In other words, it measures the market’s ability to sustain a product’s growth and profitability.
For example, Uber magnificently captured product market fit in 2009. The company founders recognized the taxi system was expensive, outdated, and dwindling in users. Uber saw a market need and created a simpler, more convenient option.
To date, Uber has 93 million riders and proved Product Market Fit is key to a successful business.