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I disagree. There is a network effect here, people will use the brand that already is installed on their phone PLUS the one that has the most scooters. This is
by tomglynch 8y ago
I disagree. There is a network effect here, people will use the brand that already is installed on their phone PLUS the one that has the most scooters. This is what can occur here.
- JSDave 8y agoIf someone wanted to sell a new app, they have to get people to recognize their brand and install their app no matter what. Ride sharing companies then also have to reach a critical mass where drivers and riders can match in a reasonable time. I think overcoming that is the network effect.
- ccvannorman 8y ago"Overcoming entering into a new market" is categorically different from "Overcoming a mandatory 6 month freeze on your ability to compete while your competitor gets first dibs."
- eridius 8y agoUsing the app already on your phone isn't a network effect. A network effect is when the more users there are, the more valuable the network is to each new user. For ridesharing, the more drivers there are, the more useful the service is to passengers, and the more passengers there are the more attractive the service is to drivers. But for scooters? Whether a given scooter brand is popular or is unknown has no bearing whatsoever on its utility to a new user, all that really matters is whether the scooters are available when and where the user wants them, and whether the app is easy to use.