How have Uber, Spotify, & Netflix continued to grow while focusing on a single market?

Pursuing a singular flywheel (genius strategy):

Fully devoting yourself to a singular flywheel is one of the hardest challenges in business. It's a daily battle of saying "no." Now that zero interest rates have come to an end, it's more important than ever. Uber, Spotify, and Netflix have done it beautifully. Let's explore...

· Uber's Flywheel

It's based on the two values that drive ride-sharing:

1. Faster pickups: More geo coverage → Faster pickups → More demand → More drivers → More geo coverage

2. Lower prices: More geo coverage → Less driver downtime → Lower prices → More demand

What's genius about Uber's flywheel is that it counter-positions the company against its competition. The key element in each flywheel is more geo coverage. That's vastly different from Lyft, which took a more focused approach.

· Spotify's Flywheel

It's based on the two key vectors Spotify competes on:

1. Data: Word of mouth → Users/ scale → Engagement → Data → Personalization → Improved experience

2. Promoters: Word of mouth → Lower customer acquisition cost → Better cost structure → Users

Spotify's flywheel is genius in its own way. It acknowledges the reality that it's in a low-margin business by focusing on lower customer acquisition costs. It also builds an ever-increasing moat with its data-based personalization flywheel.

· Netflix's Flywheel

Like Uber and Spotify, it's based on the company's two key motions:

1. Content Flywheel: User experience → Time spent watching → Filmmakers → Movies and shows → User experience

2. Data Flywheel: User experience → Time spent watching → Data

Netflix has a very interesting flywheel because user experience and time spent watching are shared in both motions. It's a company that drives maniacal focus by reducing the parameter set. In a market as competitive as streaming, it's genius.

Takeaways: Each of these flywheels has amazingly simple structures. They have just two motions. To continuously grow in a single market like these behemoths, you have to focus on a few key timeless vectors. That's the genius approach.