4 ms·
> Uber is no more than an app with little network effect. > If they start making money in a given city, a competitor can sweep in and take the city from them.
by acchow 10y ago
> Uber is no more than an app with little network effect.
> If they start making money in a given city, a competitor can sweep in and take the city from them.
Odd. I see their network effect as rather strong. Why would a driver use a new competitor app if the customers aren't there? Why would a customer download another app they haven't used before or heard of, especially if the rides aren't there?
- michaelbuddy 10y agoCompetitors always have it easier because they can see what works and doesn't work from original competition. Which means they can spend less and make more. Which means they can charge less and / or pay their drivers more.
- melvinmt 10y agoMore competition will pretty much always cause every competitor to spend more and make less... See: https://en.wikipedia.org/wiki/Perfect_competition#/media/File:Perfect_competition_in_the_short_run_(simple).svg https://en.wikipedia.org/wiki/Perfect_competition#/media/Fil...
- konschubert 10y ago> Why would a driver use a new competitor app if the customers aren't there? Because there is almost zero cost for the driver to sign up for yet another app. Already today, many drivers use multiple apps. > Why would a customer download another app they haven't used before or heard of, especially if the rides aren't there? He will hear about it and download it if the rides are cheaper.