Lyft, Inc. is an American ridesharing platform that is a directcompetitor of Uber Technologies, Inc. in the US market. Using Lyftas an example, explain the importance of network effects forbusiness success in the presence of a competitor. Why did Lyftmanage to successfully enter the US market for ridesharing andcompete with Uber, i.e., why is ridesharing not a dominant firmindustry? Explain by referring to concepts such as multi-homingcosts, network effects and product differentiation.
