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You really can’t. I can use any taxi company I want to get from A to B. I can’t use any chat app I want to talk to my cousin Alice or my brother Bob. I have to
by function_seven 10y ago
You really can’t. I can use any taxi company I want to get from A to B. I can’t use any chat app I want to talk to my cousin Alice or my brother Bob. I have to choose one that they’re already on. That’s the network effect.
In transportation, all these taxi companies are using the same roads; the same network. I don’t have to make sure AcmeRideShare has permission at both the pickup and drop off points.
And I can change my mind tomorrow and go with ABCRideShare if I have a coupon. I can’t just arbitrarily decide to use ICQ tomorrow to talk to my Facebook friends.
- xapata 10y agoIn the chat app comparison, your cousin Alice is the driver. Saying that the roads are the network is like saying the internet is the network.
- function_seven 10y agoBut Alice is NOT the driver. Alice is whatever destination I want to get to. And any taxi company will be able to get me there. > Saying that the roads are the network is like saying the internet is the network. Fair enough.
- xapata 10y agoNot every taxi company is willing to pick you up in a reasonable time frame and take you wherever you want to go. In many cities, on many occasions, I have had significant trouble hailing or calling for a cab. Further, I've often had them (illegally) refuse to take me to my desired destination. Uber and Lyft are wonderful, because the drivers show up and don't complain about where you're going.