Lyft and Uber both benefit from network effects, do they not?
Me searching for a restaurant on Google is the same as me searching for a ride on Uber. Drivers, like advertisers, will go where the users are. If there is an opportunity to get more rides from Uber because more users are there, more drivers will join Uber. This will drive the cost of rides on Uber down, and more users will join Uber because wait times and costs of rides are lower there than on any other app.
Correct me where I’m wrong here, as I’m not seeing the argument for how what I’ve described above isn’t the same type of flywheel effect we see with large tech companies.