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Two different effects of creating a network: for Facebook, you see network effects creating lock-in for users - nobody wants to leave because everyone's on it.
by clay_to_n 10y ago
Two different effects of creating a network: for Facebook, you see network effects creating lock-in for users - nobody wants to leave because everyone's on it. For Uber, the network effects make the experience better as the network grows - with more drivers, more riders use it, and vice versa.
We often use "network effects" to refer to word of mouth growth and user lock-in, but I think Uber's advantage is still a network effect - just a different one.