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We'll see. This business is becoming massively commoditized, which will eventually minimize network effects in the face of competition and price (for drivers a
by jly 10y ago
We'll see. This business is becoming massively commoditized, which will eventually minimize network effects in the face of competition and price (for drivers and riders). We lost Uber/Lyft in Austin less than a year ago, and there are now several new services (Fare, Fasten, etc) that do exactly the same thing here, with a little less of that moneyed polish. Drivers and riders alike are using them just like before. One hardly even notices a difference except the name of the app.
- rogerbinns 10y agoHow mismatched are the new services in terms of size? If they are all roughly similar then network effects won't make much of a difference. But for example if one is ten times the size of the others, then I stand by my claim that network effects will result in * shorter wait times for riders (better customer experience) * more money for drivers (shorter waits between riders, so more paid time) * cheaper fares (fixed costs spread over more riders, reducing per rider cost) * more effective loyalty programs (improved ways to earn and spend on them) A larger incumbent can be attacked, with the simplest way of doing it to go more niche - eg serving a smaller area better. Even then the incumbent should have greater ability to react.
- bob12346 10y agoThe Austin services are not comparable when it comes to wait times. I've found it very hard to get a Ride or Fasten on several occasions even in high density areas, and you can't really count on being able to get a Ride at all times in all parts of the city. I'm definitely eagerly awaiting the return of Uber/Lyft.