4 ms·
You need to reread what a network effect is. It's exactly what goes on in a ridehailing platform.
by Jommi 8y ago
You need to reread what a network effect is. It's exactly what goes on in a ridehailing platform.
- RandallBrown 8y agoI'm not really sure that's true at all. If all of my friends are using Uber and I'm using Lyft, I get the same amount of value out of Lyft whether anyone else is using it or not. Now, there is some network effect with new drivers signing up for a more dominant platform, making it harder to use others. Since drivers can (and usually do, in my experience) sign up for multiple platforms. That effect is greatly diminished.
- Jommi 8y agoIm not talking about a onesided network effect. Im talking about indirect network effect concerning a two-sided market. If more of your friends use Uber than Lyft, that suggests that there are more customers on Uber. This means Uber is more valuable for the drivers as a platform. This means more drivers will driver for Uber. This means Uber has better availability. This means Uber is more valuable to customers.