A note from Daniel

The hard side of the network is the most difficult and expensive to scale. As the market saturates, it eventually becomes more important to "scale up" than to continue to acquire new members of the hard side. This was true for Uber, which started out by acquiring drivers through low volume, unsalable methods—emphasizing hustle from the operations team, and tactics like Craigslist ads. But once tens of thousands of new drivers need to be recruited into a mature market, those tactics didn't work anymore. What might have been a $70 Craigslist ad to recruit a driver in the early days eventually became $1,000+ per active driver from every direction-paid marketing, referrals, even TV and radio ads.

Daniel Cold Start Problem, page 281 · September 28, 2023 Save to shelf
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