Casey Winters: belief

Transcript context

…Great. We've been talking about Grubhub a lot. Grubhub had some pretty strong network effects, in large part, thanks to the work you did. One of the benefits of network effects is it creates a barrier to entry. It's hard to replicate and compete with a company where they already have all this network effect, but famously, Grubhub got disrupted by DoorDash and Uber Eats. Maybe you can talk about how that happened and why that happened. It'd be cool to hear just like, what do you think they could have done differently and what happened where their network effect got eaten for lunch? Pun intended. Sure. It's a great question. I think people do mistake any form of network effect as this perfect form of defensibility. They're the best form of defensibility, but that doesn't mean they're immune to disruption. I think the main way this happens with cross-side network effects that we typically talk about for marketplaces is when a disruptor dramatically expands selection. I want to be clear, I left Grubhub at the end of 2013 before said lunch was eaten, so what I'm communicating is more like public knowledge of watching these amazing companies compete, rather than being inside the fire at the time. Great.…

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