What it is
On the internet, distribution and transactions cost almost nothing. So whoever offers the best experience attracts the most users. Those users attract suppliers: sellers, drivers, creators. More suppliers make the experience better, which brings more users. The loop keeps turning.
Ben Thompson calls the winners aggregators. Because they own demand, they gain power over suppliers, who become interchangeable. Left alone, the loop tends toward one aggregator with all the customers and all the suppliers. People choose it because it’s better at first; later, its grip on the suppliers can make it hard to leave.
How it shows up for me
It explains a lot of my daily frustration with apps, and a lot of why advertising ended up paying for so much of the internet. It’s also why I keep this site on my own domain. I’d rather own my small relationship with you than rent a big one from a platform.