[peatmoss]

> the cost to a customer to switch...

I think this is the key here. Network effects are powerful, but are highly contingent on switching costs. It costs drivers and passengers next to nothing to switch between providers. A relationship between driver and passenger only exists for a single ride.

By contrast, look at Facebook's network effect. The switching cost to obtain a comparable service is talking all your friends and elderly relatives into Something New. Hence G+ making roughly zero gain against the Book.

[rhino369]

Ubers treatment of their drivers as "contractors" has hurt their network effect. Because they can't make them exclusive to uber. All the uber drivers in DC also use lyft. And they'd use another service if that popped up.

I bounce around between the two based on whoever gave me a discount.