[makmanalp]

What's the network effect here? I can pull up either app.

I guess the lock-in is in the driver side. They could stipulate that they must be uber or lyft only. But drivers will eventually leave if consumers do. And especially with much less regulation and overhead, drivers can switch over much easier than cabbies can get a badge. This is all great. We need all actors to be able to switch for there to be healthy competition.

If the regulation efforts hit back and make it impossible for drivers to move, then we're stuck with one company or the other. But both uber and lyft have positioned themselves as anti-regulation (in the sense that they claim they're not cabs) so the acting forces make it seem like it's difficult that they can pull off a deal with local governments that lock drivers in.

[fred_durst]

The network effect starts with the drivers. Whoever can become the reliable service by always having a driver nearby will become the first app opened. Right now consumers are going to where the drivers are, but eventually that will flip for Uber once it reaches the saturation point. Then Uber will proceed squeeze everyone(including the drivers).

Ebay is probably a good analogue for ride sharing.