The network effect is the barrier to entry. It's a huge barrier to entry. There wasn't a barrier to entry a few years ago, but now there is a huge one. There won't be more than a few of these companies in the future; it's just not worth it for customers to have 5+ apps - 2 or 3 will do just fine (at the most). I only have the Uber app, like most people, and I don't have a reason to download another until Uber disappoints me. However, more users lead to more drivers, which minimizes the chance Uber disappoints me.
Logistics companies are an ok comparison, but not really. A higher number of people that use a certain logistics company doesn't necessarily translate to better service. FedEx/UPS would be a better comparison (more people utilizing their capacity will reduce shipping rates and increase service levels, i.e. delivery times), but they own inventory, so it's not a perfect comparison.
Logistics companies are an ok comparison, but not really. A higher number of people that use a certain logistics company doesn't necessarily translate to better service. FedEx/UPS would be a better comparison (more people utilizing their capacity will reduce shipping rates and increase service levels, i.e. delivery times), but they own inventory, so it's not a perfect comparison.