Case Study 02: Questions
Questions 1: What explains the rapid growth of ridesharing companies such as Uber and Lyft?
Question 2: What explains Fasten’s successful entry into the Boston market?
Question 3: Is ride-sharing a winner-take-all market?
Question 4: How will self-driving vehicle technology affect the industry?
Case Study 02: Objectives
1. Illustrate how network effects, network clustering, economies of scale, and multi-homing
can drive market dynamics in a platform-based market.
2. To discuss how firms may adopt appropriate strategies to change the strength of network
effects and multi-homing tendencies in order to steer market dynamics to their advantage.
3. To evaluate how a traditional industry is being transformed by digital innovations such as
mobile technology and self-driving vehicle technology and how such innovations affect
existing players.