Earlier quoted context omitted.
Each Uber user benefits when there are more Uber drivers. They can get rides faster and more conveniently. Each Uber driver benefits when there are more Uber users. They can get clients faster and closer to their current position and thus make more money with less downtime. These are the network effects. A consumer can use Uber and a competitor. This, however, is not unlike social networks, it is entirely like social…
Each Uber user benefits when there are more Uber drivers. They can get rides faster and more conveniently. Each Uber driver benefits when there are more Uber users. They can get clients faster and closer to their current position and thus make more money with less downtime. These are the network effects. As nickpinkston said, those are economies of scale, which is a related concept, but not the same. A consumer can u…
This is still network effects, just with two different parts. The drivers benefit when there are more users, and the users benefit when there are more drivers. It falls clearly into the definition of network externalities when you take the drivers into account.