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The switching costs for ride-share are far lower than Reid's examples. AirBnB can make recommendations based on past experience. Uber/Lyft are one-time transac
by matchagaucho 8y ago
The switching costs for ride-share are far lower than Reid's examples.
AirBnB can make recommendations based on past experience. Uber/Lyft are one-time transactional commodities. There's no loyalty incentive.
- ghaff 8y agoI'm not sure WeWork is a great example either. Sure, they're the hip kid in the co-working space these days but there are tons of other providers of co-working and other office facilities around the world, both chains and one-offs. AirBnB is a reasonable example because there are fairly strong network effects (as with e.g. eBay--especially in the old flea market days). There are definitely some network effects with Uber and Lyft but they're mostly local and most people do most of their taxiing locally. There's some benefit to brand and there's some benefit to amortizing the back-end but taxis/ride-hailing is mostly a local business.