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One argument -- 2 sided marketplaces are a pretty decent barrier to entry. Craigslist, eBay, etc benefit from this. They have both sellers and buyers in the sam
by jacquesc 10y ago
One argument -- 2 sided marketplaces are a pretty decent barrier to entry. Craigslist, eBay, etc benefit from this. They have both sellers and buyers in the same place. Starting an Uber from scratch -- who would drive for it when there's not enough customers? What customers would use it if there's not enough drivers?
- coralreef 10y agoOk, I concede that there is a high startup cost to signing up drivers and marketing to new customers. But arguably, Uber has paid the highest price by being first mover, allowing competition to follow behind and access this "social infrastructure" much more cheaply. As an example: Every Uber driver knows about Lyft (and other competitors) and is willing to drive for them if they pay better or offer more volume.
- greglindahl 10y agoLyft already has a lot of drivers in many places, and apparently enough customers to make it worthwhile.