Platforms and Power (with Hamilton Helmer and Chenyi Shi)

In this episode of Acquired, Ben Gilbert and David Rosenthal interview Hamilton Helmer and Chenyi Shi about applying the Seven Powers framework to platform businesses. They define platforms broadly as intermediaries for transactions and discuss how technology lowers transaction costs, enabling new markets. The conversation covers a three-question framework for assessing platform power: how economic value is created, how customers perceive this value, and what prevents competitors from achieving equivalence. They analyze examples like Uber, YouTube, TSMC, and Apple, debating the nuances of network effects, multi-homing, and the timing of value capture. The episode also touches on strategic pricing, the importance of understanding customer segments, and the limitations of the flywheel concept.