3 ms·
> There is no network effect here. Each additional driver does not increase the value More drivers => decreased wait times => more customers => more drivers
by erikpukinskis 10y ago
> There is no network effect here. Each additional driver does not increase the value
More drivers => decreased wait times => more customers => more drivers
- acchow 10y agoBut there's minimal stickiness to the network. The switching cost to another network is almost free, and the network value itself is pretty low. Consider eBay, perhaps the most-successful two-sided network of the first dot-com boom. You could switch to another auction site, but as a seller you would lose all of your online reputation (sales history) which is worth a lot on eBay (since people don't buy expensive items from someone with no sales history whatsoever). When is the last time you cared how many drives your Uber/Lyft driver had given? eBay - very sticky. Uber/Lyft - not so much.