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Switching over Entire Networks Part of why cherry picking can be dangerous for the incumbent is that the upstart networks can reach over and directly acquire an entire set of users who have been conveniently aggregated on your network. It’s just software, after all, and users can spread competitors within an incumbent’s network by using all the convenient communication and social tools. Airbnb is again an example of this. The company not only unbundled Craigslist and turned the shared rooms idea into an entire product, but they actually used Craiglist users to advertise Airbnb to other users. How? Early on, Airbnb added functionality so that when a host was done setting up their listing, they could publish it to Craigslist, with photos, details, and an “Interested? Got a question? Contact me here” link that drove Craigslist users back to Airbnb. These features were accomplished not by using APIs provided by Craigslist, but by reverse-engineering the platform and creating a bot to do it automatically—clever! I first wrote about this in 2012 on my blog, in a post titled “Growth Hacker is the new VP Marketing” with this example in mind. By the time Craigslist decided it didn’t like this functionality and disabled it, months had passed and Airbnb had formed its atomic network. The same thing happened in the early days of social networks, when Facebook, LinkedIn, Skype, and others grew on the back of email contacts importing from Hotmail, Yahoo Mail, and other mail clients. They used libraries like Octazen—later acquired by Facebook—to scrape contacts, helping the social networks grow and connect their users. At the time, these new social networks didn’t look like direct threats to email. They were operating within niche parts of messaging overall, focused on college and professional networks. It took several years for the email providers to shut down access after recognizing their importance. When an incumbent has its network cherry-picked, it’s extra painful along two dimensions: First, any network that is lost is unlikely to be regained, as anti-network effects kick back in. And second, the decline in market share hits doubly hard, which has implications for being able to raise money.
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