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Yes, that is called a two-sided market/network effect.

Each driver increases value for riders, and each rider increases value for drivers. This two sides.

A 1 sided network is facebook. A two sided market is like the video game industry (more video games are good for gamers and more gamers are good for video game devs)

For taxi apps, imagine if there was only 1 driver in SF. That wouldn't be a good experience for consumers. Thus, network effect.




> A 1 sided network is facebook.

Almost every user in Facebook is both a provider and consumer of content. It's like an exponentially-sided network.

In Uber, drivers provide supply to riders. Riders provide demand for drivers.


Yes, they are both a provider and a consumer.

That is the definition of a 1 sided market.

Sorry, I am using economics jargon.

https://en.wikipedia.org/wiki/Two-sided_market




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