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Is there a name for venture-driven ecosystem replacement? That is, the Uber-like building of a new equilibrium that replaces the previous one but ends up as fla
by xianshou 4y ago
Is there a name for venture-driven ecosystem replacement? That is, the Uber-like building of a new equilibrium that replaces the previous one but ends up as flawed as or worse than the original. Here is how the process works:
1. Introduce a new system (Uber) whose premium form is better but more expensive than the old (taxis)
2. Subsidize its operation with unlimited funding
3. People become behaviorally locked into the new system and the old one dies
4. Remove the subsidy
5. The new system degrades into an unhappy medium of mediocre performance at high cost, but the old system no longer exists as an alternative
Dating apps are not "subsidized" in the same sense, but exhibit a similar trajectory. They work well when small and badly when dominant, but by the time we realize the problems at scale, the previous behavioral models (friend-of-friend introductions, work relationships, in-person approaches) are no longer viable and may not even be considered acceptable.
What do we call this pattern?
- bruce343434 4y agoHuh? Where do you live that those methods are no longer viable? And unacceptable?