A note from Daniel

The rideshare competition also shows the fallacy in believing in winner-take-all markets—instead, products compete as networks of networks, so that even when Uber's network was bigger in aggregate, it was only 50/50 in cities like San Francisco and Los Angeles against Lyft. It had similar, not superior, network effects, and it became hard to make competitive headway. This model of thinking about network effects explains why bigger networks find it hard to fully defeat competitors, whether you are looking at Facebook versus Snapchat, Zoom versus the litany of videoconferencing competitors, or another battle.

Daniel Cold Start Problem, page 358 · October 5, 2023 Save to shelf
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