How did Uber define its early atomic networks?

The Cold Start Problem technique can be applied to a beauty services marketplace by starting with a focused, small network, or what Chen calls an "atomic network". This could be a specific neighborhood, a particular group of beauty professionals, or a niche customer base.

The marketplace could initially offer services to a specific demographic or location, ensuring high-quality service and building a strong reputation. Once this smaller network is established and functioning well, the marketplace can then gradually expand to other demographics or locations.

This approach allows the marketplace to build a solid foundation and overcome the initial hurdle of attracting both service providers and customers when the value of the platform is not yet established.

Remember, the key is to start small, ensure quality, and then expand gradually.

The Cold Start Problem can have significant implications for market competition. It can create barriers to entry for new businesses, as they need to overcome this problem to establish themselves in the market. This often involves starting small, in a single network or location, and gradually expanding once they have established a successful model. This can slow down the rate of expansion and limit the ability of new businesses to compete with established ones. Moreover, the need to overcome the Cold Start Problem can also lead to a focus on niche markets or specific locations, which can limit the scope of competition.