this post was submitted on 17 Nov 2023
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Because in order to make something like Airbnb, you need to get a lot of hosts and guests. Hosts won't sign up unless there are guests and guests won't sign up unless there are hosts.
These kinds of marketplaces are very difficult to get any traction.
1st mover advantage
No. It’s the network effect.
No the network effect is what makes it difficult, the first mover advantage is what makes it near impossible for a competitor to compete, here.
If there's nothing, the platform can start to exist without strong network and grow.
But if there is a paltform with the network, why would anyone use a different network?