Not only that, but the trend is to pay users for adoption. When all the apps in a sector (e.g. taxi-hailing) are free, there can't be competition on price so th

Not only that, but the trend is to pay users for adoption. When all the apps in a sector (e.g. taxi-hailing) are free, there can't be competition on price so they give customers cash back. Sometimes the payback can be more than the taxi fare if you include the rewards your friends get. For online auctions, Taobao set the trend of free auctions for both buyer and seller (including free payment processing through Alipay). All of the competition followed suit and now Taobao offers cash back. I believe they make money through featured listings and seller registration on their premium platform, TMall.