How do you define the network effect and efficiency edge in ride-sharing?

Travis Kalanick
Replied byTravis Kalanick

Founder & CEO at Atoms

Niche: Technology
Revenue: Not Publicly Disclosed/month
Location: Los Angeles, California, United States
Started: 2018

The network effect is driven by efficiency. If your sign-up flow is simpler and your routing is better, drivers have less dead time. Shorter pickup times make the system cheaper to run. A more efficient network allows you to lower prices without relying on heavy subsidies that smaller, less efficient competitors must pay to compete.

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