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Network Effects Explained, and Positive Impact on Independent Gas Station Owners

Network effects positively impact a wide variety of businesses & consumers worldwide, including owners of independent gas stations + truck stops.

A simple way to think about network effects is that as a company adds new users (or customers), each additional user strengthens the network. Both the company and the user will win.

For businesses benefitting from network effects, it helps provide a competitive advantage.

For users, network effects often lead to better service and lower costs.

Right now, you’re likely benefiting from network effects in multiple ways. For instance,

each additional user on Facebook makes Facebook more valuable. If your friends, colleagues, and family weren’t on Facebook, it would be much less exciting and less valuable. Similarly, when you take an Uber, each additional driver and rider incrementally benefits each driver & user. It’s easy to get an Uber in San Francisco or NYC, but I’m assuming it’s very difficult to get an Uber in a rural area far outside of a city.

Network effects impact gas station owners as well. With Gas Pos, gas station owners benefit from network effects as each additional gas station owner who uses Gas Pos brings down the cost of repairs, service & more. You can think of Gas Pos as the unbranded brand for independent gas station owners.

I hope you enjoyed our discussion of how network effects positively impact businesses + users across the USA, especially independent gas station owners.


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