Will Grab’s flywheel strategy take off?

Will Grab’s flywheel strategy take off?

Photo by Andrew Draper from Unsplash.

The “flywheel effect”. The term was coined by author Jim Collins in 2001, and famously embraced by Jeff Bezos, who used it to form the basis of Amazon’s world domination strategy.

Physically, a flywheel is a mechanical device that powers machines by storing energy. But to tech executives, it is another metaphor for what they think is a winning business model: Create a loop-like cycle by attracting customers with low prices, leading to more sellers, better customer experience, thereby leading to further traffic growth and lower prices.

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