Platforms and Power (with Hamilton Helmer and Chenyi Shi)
Acquired
The Flywheel Effect in Platforms
This chapter explores the concept of flywheels as indicators of product-market fit, emphasizing that they signal success but not necessarily market power. The discussion highlights the complexities of platform business models and the challenges related to achieving growth and critical mass, using examples like Airbnb and Uber. Additionally, it delves into competitive dynamics, multi-homing, and the transformational impact of technology on transactions within multi-sided markets.
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