Public service announcement: If you build your company on somebody else's platform, they will eventually extract maximum value from you. Not a question of if, but when. Plan accordingly!
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Examples: Amazon's FBA Ebay Sellers Uber drivers Mall tenants (<-- personal fave) Ubereats specific restaurants
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Replying to @gsvigruha
It's an interesting question. I'd argue those platforms do indeed try to extract maximum value -- just switching costs are not high enough to allow that extraction to seem "unfair" like other platforms (app store).
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Replying to @mgirdley @gsvigruha
If you depend on a single company (anything, actually), regardless of whether it is for supply or demand, it is only a matter of time before you are dead. Cloud services afaict is a pretty vibrant competitive marketplace right now. No problem building a company on that.
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Replying to @Molson_Hart @mgirdley
Thanks, that's what i was thinking! The only counterargument i have is that the switching costs can be pretty substantial as you keep using more and more of their services so there are some traps to avoid there as you grow.
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When you’re starting it doesn’t matter. After you reach profitability you can start worrying about stuff like that. Being dependent on a single platform is a good problem to have compared to being dependent on a job.
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Replying to @Molson_Hart @mgirdley
Yeah i agree, i wasn't really thinking of myself but more like how would it affect the avg midsize tech company.
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