The platform revolution - network effect

The value of uber goes up as participation goes up. In +be network effect value up for each user, negative can reduce.

While before it was supply monopoly, now it is demand aggregation monopoly.

As the node in the network grows so is the value 100 node, 4996 connection. The negative is true when user start to flee, blackberry.

Two sided network, driver attract rider, rider attract driver. Even they pay money for one side to attract, once the one side is there other will follow. The profit from market b should otwieght the loss from market a.

Price effect and brand effect. Price effect to premium to freemium, the problem is the moment discount end user flee. Brand effect is stickier. Paying Hritik for cult. Vitality can attract people to network but network effect keep them there.

Frictionless scaling and other scalability tools - yahoo employee curated vs google algorithmic solution. Not only it scales better but put focus external. With frictionless entry.

Both side must grow prapotionally, it makes no sense for uber to have 1000 driver vs 1 reader. If one grows unprapotionally large, discounting other makes sense.

Then there is side switching. Frictionless entry, a scalable business, side switching all serve to lubricate network effect.

Frictionless entry must match with curation. A process by which platform filter, control and limit the user. When not curated or poorly handled users find it difficult to indentify potentially valuable match amid the flood of worthless match.naked hairy men problem.

The four network effect. Same sid, bell phone. Visa cross side effect. Cross side are not necessarily symmetric. Women attract more men, uber driver is more critical to grow than rider.

Asset builder, service provider, technology creator, network orchestrator.