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Comment by a13n

There are plenty of network effects.

To start a new ridesharing company, you have to get drivers and riders. You'd have to offer them a ton of incentives to start driving/riding with your service, when the existing options are well established.

For drivers, Lyft and Uber have incentives (lower fees) if you do the majority of rides with their service, which incentivizes you to only drive with one service.

When's the last time you downloaded a new app on your phone? For me it's been weeks, maybe months. For so many people, it's easier to just not try your new rideshare service.

parent a13n 8 years ago

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