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Even if agree with you, centralized vs. decentralized makes a lot of difference, this is not the main point of the article. Centralized vs. decentralized influe
by LukaAl 10y ago
Even if agree with you, centralized vs. decentralized makes a lot of difference, this is not the main point of the article. Centralized vs. decentralized influence your go-to-market strategy and probably your probability to succeed, but not directly your business model.
The point made in the article is that the biz model of the "Uber for X" businesses is not very strong unless X is a heavily regulated market and you are able to skip part of the regulatory burden to provide a far better service.
What's missing in the article, is the effect on the market size. Uber and Lyft changed the market size. I've taken probably a cab five times in my life before Uber existed, probably I'll use Uber five times before this week ends. And the same goes for many people. What about SpoonRocket, for example? Well, I ordered food delivery before it existed. Probably having an app and many more restaurants to order from increased my consumption of food delivery service, but just a 10 - 15% more. Not enough to sustain new players and make enough people switch fast enough to build a sustainable barrier to entry.
Not sure I'm clear: Uber provided a service so much better that increased greatly increased the market size and captured a lot of new users (and old users were fast to switch). Other services failed to increase the market size and didn't provide existing users enough benefit to switching, so no barrier to entry for competitors, a lot of competition, a lot of startups that fails.
I have a doubt, though. We are seeing a lot of Uber for X failing, but that's because a lot of them were competing for the same (in the US car-hailing market there was just Uber, Lyft, and Sidecar). That doesn't mean that one or two company will survive in the end.
- gcatalfamo 10y agoI definitely agree with you, but I didn't feel the point of the article is entirely on point, because of a very simple reason. You ordered food before Spoonrocket while Uber greatly improved an industry ripe for disruption: isn't that the point of startups anyway? While you are completely right, your point is not about "Uber for X" startups not working out, but ALL startups that are somewhat missing the right place in their markets...isn't it?
- LukaAl 10y agoA little bit more complex, I guess I wasn't clear enough. But I agree with you.
- msellout 10y ago"Uber for cleaning service" had/has the chance to expand the market, yet those companies seem to be having some trouble. That suggests the regulation aspect is somewhat of a factor.