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In most of their cities they are already a monopoly or near monopoly. Liquidity is a hugely massive advantage for both drivers and riders.
by pbreit 11y ago
In most of their cities they are already a monopoly or near monopoly. Liquidity is a hugely massive advantage for both drivers and riders.
- eru 11y agoBoth riders and drivers can use multiple apps without too much hassle.
- danieltillett 11y agoExactly. If you know a competitor can provide the equivalent service quality, but at significantly lower price, then users will switch. In a small market it is not too hard to let potential users know you exist and install your app.
- MarkMc 11y agoBoth buyers and sellers of second-hand goods can use multiple auction websites without much hassle, yet eBay still has a natural monopoly due to network effects. I doubt the network effect for uber is as strong as ebay, but I wouldnt completely dismiss it either.