Today's most successful entrepreneurs have exploited their wealth through technology companies such as Amazon, Oracle, Facebook and Microsoft. Just ask Jeff Bezos, Larry Ellison, Mark Zuckerberg and Bill Gates, who continue to act as global technology leaders.
However, there is still an opportunity to join this multi-leader round table, and the invitation is distributed throughout the blockchain and cryptocurrency. With leaders like Changpeng Zhao of Binance and Vitalik Buterin from Ethereum, many cryptocurrency companies still hope to take the lead from Silicon Valley: seeking to move from centralized companies and convert existing infrastructure to a decentralized ecosystem while recognizing traditional Wall Street companies such as Goldman Sachs have yet to feel the need to penetrate the industry.
As wealth continues to spread across many industrial companies, new crypto modes like the CZ aren't yet sitting on the same schedule of net profits, like Facebook's Mark Zuckerberg, which has been the focus of privacy recently. Years – but they recover quickly.
The overall growth and “success” of companies that Uber used in its early stages to first user participation can now be tracked, simply by supporting supply and demand.
Why reinvent the wheel?
Sharing platforms like Uber and Lyft connect people who need instant transportation with reliable drivers who can provide this service. The same is true of Airbnb, which connects people who need a place to stay with those who want to offer their furnished homes for short term rental. There is a very high demand for rents around global technology conferences, including, but not limited to, the Las Vegas Consumer Electronics Show, Southwest Austin Southwest, the Utah Sundance Film Festival and the World Economic Forum.
Since there are two startups in Silicon Valley, like Uber and Airbnb, with users on the demand side and on the side of these networks, it actually means that blockchain and crypto rooms don't have to reinvent the wheel or invent a new growth model. It already exists.
When Uber first started, it faced a dilemma in choosing a customer group that would focus mainly on the supply or demand side, in order to effectively expand the user base. According to a recent Harvard Business Review study on Uber, Etsy and Airbnb, these companies focused on a two-level growth stage.
Classic growth stages
The first step was to get the first 1000 users, focusing on the Equation Service page. When it comes to Uber, focus on giving incentives to black drivers.
Uber moved to the second level of the growth phase, focusing on Rideshare users from 1 to 1 million. The above-mentioned case study found that Uber and Airbnb cut costs in the growth stages to obtain a competitive advantage. Then these companies moved to the third stage – the production stage – by raising prices.
Airbnb Brian Chesky and Joe Gebbia used more traditional marketing tools and created an excellent host incentive program, which also highlights how Uber starts with high demand and low supply situations, rolling out one city at a time.
For example, after Uber got its first 1,000 drivers, it focused on giving money to bikers who forced their friends to download and use the app, with a coupon of $ 20 for a free ride that users can share as a gift with their friends.
To get the most out of the growth stage, companies tend to obtain significant financial resources from financial institutions to fund initial growth by subsidizing the costs of products and services, which makes them unfairly cheap compared to other services. As a result of the startup mechanisms that promote growth, the startup network effect grows and users enter it. But the economic model needs to be done correctly, especially when there are two-way networks, such as companies like Uber and Airbnb, on the provider and customer side.
Uber raised about $ 24.7 billion to start and expand the business to where it is today. Using the incentive mechanism in the application, Uber has from the very beginning developed a method to overcome the obstacle competing with the entry dilemma. In fact, it was this model and stimulating economic theory that Uber raised money.