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I don't think there is a network effect present in either Uber's or Blue Apron's business model. <snip snip> A network effect (also called network externality
by andyidsinga 8y ago
I don't think there is a network effect present in either Uber's or Blue Apron's business model.
<snip snip>
A network effect (also called network externality or demand-side economies of scale) is the positive effect described in economics and business that an additional user of a good or service has on the value of that product to others. When a network effect is present, the value of a product or service increases according to the number of others using it.[1]
[1] https://en.wikipedia.org/wiki/Network_effect https://en.wikipedia.org/wiki/Network_effect
- jeffbax 8y agoBlue Apron, not really. Uber certainly has a network effect. While many switched to Lyft given bad press, plenty more still got Uber originally (both sides of the market) and just use that. As they add more transit capabilities to their app (bikes, scooters etc) they will raise their moat as people just go there for all their transit needs.