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The network effects aren't very important for these companies. Their technology is not a moat, they have no critical patents. They burned most of their VC money
by jeremyjh 8y ago
The network effects aren't very important for these companies. Their technology is not a moat, they have no critical patents. They burned most of their VC money selling dollars for $.75. Revenues are high, which only means they lose money fast. I won't be surprised if they lose half their value in three months.
- hn_throwaway_99 8y agoWhen Austin voters kicked Uber and Lyft out of the city a couple years ago (before the state leg. overruled the city), RideAustin, a local non-profit, sprang up. RideAustin definitely had some growing pains, but now I never have issues with the app, and I prefer to use them because (a) they are local, (b) they do a "round-up" giving program for a charity I support and (c) my understanding is the drivers keep a larger share. They've certainly suffered since Uber and Lyft came back to Austin, but they have showed that if Uber and Lyft went away tomorrow it would be trivial to fill their place.