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Uber has network effects. It's definitely possible and inevitable even that they won't be on top anymore at some point, but what they are doing is not exactly a
by jameslevy 8y ago
Uber has network effects. It's definitely possible and inevitable even that they won't be on top anymore at some point, but what they are doing is not exactly a commodity if it relies on a dense two-sided marketplace.
- jhwang5 8y agoWhile it does have network effects, I'd argue it's not recession proof (mildly cyclical, even), and there's low switching costs to using other forms of transport (for example, I haven't used Uber in lieu of Lyft / driving my own car and had no issues)
- 0xB31B1B 8y agoUber has shown great growth in markets during recessions: ex Brazil. The theory is that ridesharing is a driver constrained market, and during recessions, more people drive for uber to make ends meet. Also, people invest less in large purchases (cars) and instead spend more on services with a higher marginal cost (taxi, ride share.