Venmo: Building direct network effects and then…nothing happened?
Venmo has grown with strong direct network effects, but has been unable to crack the indirect network effects.
Network Effects
Ola Cabs: The “Copy-Cat” beating Uber at its own game in India.
Ola Cabs, which built its business model on Uber’s success in the US, is significantly ahead of Uber in India with estimates suggesting an almost 80% market share to Ola. How could an India based start-up beat a giant like Uber which has expressed a strong intent to win the Indian market? What lessons can be learnt from the Ola success for other players planning a similar strategy? Is this initial success of Ola Cabs sustainable in the long term?
Styleseat: creating a two-sided platform in the fragmented beauty industry
StyleSeat has developed a two-sided marketplace for the historically fragmented beauty industry, and is betting on network effects as it prioritizes quick growth of its user base.
Fitbit is Peer Pressuring People into Buying Their Product and It’s Working
I’m not a huge fan of consumer wearables. In fact, I think most of them are kind of stupid, because they rarely have a unique use case and the redundancy drives me crazy. Like why do I need to wear […]
thredUP utilizing network effects
thredUP owners increased their control of the multi sided platform by transferring it from a marketplace to a re-seller and grew their network by utilizing direct and indirect network effects. However, they are still at risk of imitation and substitute, as there is no affiliation and no switching costs both from the supply side and the demand side.
Netflix – Getting Smarter Everyday
Netflix exhibits both direct and indirect network effects through its recommendation engine, content acquisition process, and enabling devices.
Zillow: Bringing Data and Transparency to the Neighborhood
Zillow brings data and transparency to neighborhoods across the U.S.