{"id":720,"date":"2020-08-31T18:54:13","date_gmt":"2020-08-31T16:54:13","guid":{"rendered":"https:\/\/www.jongore.com\/blog\/?p=720"},"modified":"2020-08-31T18:54:13","modified_gmt":"2020-08-31T16:54:13","slug":"platform-commodities","status":"publish","type":"post","link":"https:\/\/www.jongore.com\/blog\/uncategorized\/platform-commodities\/","title":{"rendered":"Platform Commodities"},"content":{"rendered":"\n<p>Who will win the ride sharing competition?  In the USA, will one company come out on top, and drive the the other out of the market?  What makes a platform defensible? <\/p>\n\n\n\n<p>According to academics, a multi-sided marketplace will take all the winnings if it:<\/p>\n\n\n\n<ol class=\"wp-block-list\"><li>has high multihoming costs <\/li><li>network effects are positive and strong<\/li><li>neither side&#8217;s users have a strong preference for special features<\/li><\/ol>\n\n\n\n<p>The third point is the most controversial to me.  A weak preference for a feature seems counterintuitive towards network effects. An example would be Spotify over Apple Music.  I don&#8217;t really have a preference to Spotify, over Apple Music.  The multi-homing costs are high, considering you&#8217;re paying twice for the same thing, and there&#8217;s network effects on both sides.  Both businesses fit the winner take all dynamic, but both are still in the market.  <\/p>\n\n\n\n<p>Really, what I want to drive at, is if you can build strong network effects, do either of the two other points matter much?  Aren&#8217;t network effects the most important part about building a platform?  I&#8217;m not sold on multihoming costs or preferences being the driver for value yet.  Sure, if you can get them, it&#8217;s better.  <\/p>\n","protected":false},"excerpt":{"rendered":"<p>Who will win the ride sharing competition? In the USA, will one company come out on top, and drive the the other out of the market? What makes a platform defensible? According to academics, a multi-sided marketplace will take all the winnings if it: has high multihoming costs network effects are positive and strong neither [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-720","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"blocksy_meta":[],"_links":{"self":[{"href":"https:\/\/www.jongore.com\/blog\/wp-json\/wp\/v2\/posts\/720","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.jongore.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.jongore.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.jongore.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.jongore.com\/blog\/wp-json\/wp\/v2\/comments?post=720"}],"version-history":[{"count":1,"href":"https:\/\/www.jongore.com\/blog\/wp-json\/wp\/v2\/posts\/720\/revisions"}],"predecessor-version":[{"id":721,"href":"https:\/\/www.jongore.com\/blog\/wp-json\/wp\/v2\/posts\/720\/revisions\/721"}],"wp:attachment":[{"href":"https:\/\/www.jongore.com\/blog\/wp-json\/wp\/v2\/media?parent=720"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.jongore.com\/blog\/wp-json\/wp\/v2\/categories?post=720"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.jongore.com\/blog\/wp-json\/wp\/v2\/tags?post=720"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}