One of the most important elements of a tech platform business model is the ability to create multiple expansion network effects. A network effect is often described in economics and businesses as one of the key pillars of success as it depicts a contagion behavior of one additional usage of products or services that will have on the next users. This creates a long-lasting effect and an increasing value of a customer's lifetime value, which is one of the key unit economic metrics for a business. The Internet is clearly the easiest example of the network effect, where everything in our daily activities flows through the web channel. Let's take a look in more detail by using a private ride-hailing network, Grab as an example.


Grab started out as a ride-hailing platform where it aims to create a large pool network of supply and demand in...