Changing Markets and Stronger Hands
I read a wonderful post by Jonathan Kay of Apptopia this week. (h/t to Thomas Petit for sharing it on Twitter.)
In the post, Jonathan dives into how Lyft is on pace to surpass Uber in U.S. marketshare due to substantially better customer retention rates.
Uber vs. Lyft has been an emblematic example of the grow-at-all-costs competitive landscape we’ve been in for the last 10 years. It seems that Uber vs. Lyft is now becoming an example of our market’s shift toward more sustainable, long-term growth. Lyft may have a stronger hand in the early innings of this new era.
This battle is an example everyone loves, but all startups should assume they are going to be in the same type of market going forward.
Your startup is holding a weak hand if your goal is using paid media to buy customer transactions at the lowest possible CPA.
If your focus is on acquiring long-term, high-value customer relationships, your hand is substantially stronger. It’s time to make sure you have the strongest hand possible.