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by aetherson 3367 days ago
1. Chip-sellers want to have chip-eaters to purchase from them. Chip-eaters want to have chips of known characteristics readily available to purchase. The more chip-sellers of Doritos, the easier it is for chip-eaters to reliably get Doritos, and the more chip-eaters will become Doritos customers, which in turn incents more chip-sellers to carry Doritos.

And, I mean, that's true. It really is an advantage. But it is again, obviously absurd to describe Doritos as having a network effect. A network effect means a scale advantage over-and-above the effect that is enjoyed by everyone with a big brand and built in demand.

2. Uber Pool and Lyft Line have a genuine network effect, that's true. But as far as I can tell, they're just not compelling products.