The Cold Start Problem: How to Start and Scale Network Effects

by Andrew Chen

With these key features, “Slack” was picked to mean “Searchable Log of All Conversation and Knowledge.”

A small group of drivers, about 5 percent of Uber’s users, carry most of the load within the rideshare marketplace—riders are numerous but engage less frequently and deeply. To

a network that is built out, meaning they can generally find whoever and whatever they’re looking for. The network effects kick in, and the market hits its Tipping Point as users start coming to you.

The solution to the Cold Start Problem starts by understanding how to add a small group of the right people, at the same time, using the product in the right way. Getting this initial network off the ground is the key, and the key is the “atomic network”—the smallest, stable network from which all other networks can be built.