Finding Solutions and Ideas from the Outside: What Uber and “The Cold Start Problem” Can Teach Every Business

We all want to believe that the best product wins. That if you build something remarkable, customers will naturally flock to you, spread the word, and success will follow like a loyal dog. But the hard truth? Being really good—or even the best—does not guarantee success.

This isn’t just opinion. It’s the central thesis in Andrew Chen’s compelling book The Cold Start Problem, where he digs deep into how products actually grow, why some take off while others disappear, and how network effects—not just innovation—drive momentum. In one of his most powerful examples, Chen highlights Uber’s rise, not as a product that solved a new problem, but one that reframed a very old one—and scaled it by finding solutions and ideas from outside the norm.

So, what can we learn from Uber’s success story and Chen’s insights? What takeaways can we borrow and adapt to our own businesses, regardless of industry?

Let’s drive in. (pun intended)

The Product Death Cycle: Why Being “Good” Isn’t Enough

There’s a familiar—and painful—cycle that happens far too often:

1. You create something new.

2. It gets some buzz and early traction.

3. You make minor updates.

4. Then… crickets. Users fade. Revenue drops. The product dies.

This happens not because the product wasn’t good, but because while you were busy tweaking, someone else was busy reinventing. They weren’t playing in the same sandbox—you were refining; they were redefining.

Think about this in terms of the taxi industry. Taxis didn’t go out of business because people stopped needing rides. That demand was constant. What changed was how that demand was fulfilled—and who got to fulfill it.

The Uber Shift: Reframing a Constant Need

Let’s break it down.

You’re at the airport. You need to get to your hotel. In the past, a taxi was sitting outside. It was simple—convenient even. In fact, there was arguably no faster solution than walking outside and getting into a waiting cab. But despite that incredible convenience, taxis collapsed.

So what changed?

The convenience of predictability replaced the convenience of immediacy. Uber gave us the ability to plan, track, estimate, and pay on our own terms. Suddenly, we were okay waiting five minutes, ten minutes, or even longer—because the transaction felt modern, controlled, and personal.

And in places where there never were taxis—small towns, suburbs, rural areas—the “neighbor who gives you a ride” was still there. But now? That neighbor gets paid.

They’re part of the network. And they want in.

That’s the real magic: Uber didn’t create a need—they leveraged an existing one and scaled it into everyday life.

Uber’s Growth: It’s Not About More Riders

This might sound counterintuitive, but Uber’s real growth doesn’t come from getting more riders—it comes from getting more drivers.

Why?

Because:

• The number of people who need rides is relatively constant.

• But the number of people who want flexible income is not.

Let’s look at some Uber numbers from 2024:

• Uber has 8 million active drivers globally. 

• Riders take more than 30 million trips per day. 

• Drivers earn over $20 Billion in annual revenue including tips. 

• Drivers operate in 70 countries worldwide.

• Only 40% of drivers are still active one year after their first trip.

That’s a lot of churn. And it means Uber must constantly attract new drivers. Not because demand has increased exponentially—but because its supply network is fluid.

For some comparison, in 2015, Uber drivers who stuck around earned over $3.5 billion. That income potential is still attractive—but it needs to be framed and marketed the right way.

And Uber figured that out too.

Marketing That Doesn’t Look Like Marketing

One of the most impressive parts of Uber’s success story is its marketing strategy—or more accurately, its lack of traditional marketing.

There were no massive TV ad campaigns. No celebrity endorsements. No Super Bowl ads (at least not early on).

Instead, Uber used something far more powerful: network-based marketing.

• Airport signs pointing to the rideshare area.

• Hotel signs guiding you to the Uber pick-up zone.

• Stadiums creating Uber lanes.

• Restaurants and retailers promoting Uber Eats.

• Job boards featuring Uber driving as a flexible income option.

It’s everywhere. Without ever seeing a commercial, you know what Uber is. And that’s because they turned infrastructure into brand identity.

Uber isn’t just a company. It’s a verb. A utility. As familiar as a bathroom sign or a Wi-Fi signal.

What Uber Actually Sells (Hint: It’s Not Just Rides)

Uber’s success is multi-layered because it understands what it really offers:

• To drivers: a flexible income opportunity, independence, and a low barrier to entry.

• To riders: reliability, consistency, and personal control.

But beyond that, Uber is about leverage.

It leverages:

• Money: You can make it easily and flexibly.

• Bonuses: Surge pricing benefits drivers and Uber alike.

• Market dynamics: People want income on their terms.

• Basic needs: Getting from A to B is not going away.

And as Uber evolved, it didn’t just expand into new locations—it expanded into new verticals that needed those same network effects:

• Uber Eats

• Uber Freight

• Uber Health

• Uber for Business

Each of these builds on the same core idea: facilitate connection, lower friction, and leverage existing behavior for new outcomes.

So What Can the Rest of Us Learn?

You might not be building the next Uber, and that’s okay. But their approach—and the insights from The Cold Start Problem—offer some serious inspiration:

1. Leverage an Existing Need

Don’t try to create demand out of thin air. Find a behavior people already do and figure out how to scale it. What are people already solving on their own that you can formalize, simplify, or monetize?

2. Think Outside the Product

The product is not the end. It’s the starting point. It’s the platform on which you build the experience, the brand, and the network. Keep innovating around how it’s used and perceived.

3. Solve the Cold Start Problem Through Others

Uber didn’t grow by trying to convince millions of people to download an app overnight. It found key starting nodes—cities, communities, influencers—and grew through them. Who are the nodes in your network?

4. Steal Smart

Look at companies outside your space. What do they do differently? What systems do they use? What networks have they built? Could your business model borrow from the gig economy? Could your marketing borrow from viral loops?

5. Make Time to Think

The biggest constraint for many businesses isn’t money—it’s time. We get stuck in the “update and maintain” loop. But real growth often comes from time spent looking out the window—reading, exploring, stealing smart ideas from unexpected places.

So ask yourself: Who on your team is responsible for looking outward? Who has permission to steal like an artist? Who’s in charge of connecting your product to other ecosystems, networks, and ideas?

Final Thoughts: Innovation Isn’t Always Inventing

Uber didn’t invent the ride. They just reimagined what it could look like in modern life. They took a familiar need and layered it with convenience, flexibility, and a deep understanding of human behavior.

Andrew Chen’s The Cold Start Problem reminds us that success isn’t about a better product—it’s about better connections. Better networks. Better entry points.

So the next time you’re stuck updating your product roadmap for the tenth time, maybe pause and ask:

Who else is solving something better than we are? And what can we steal from them today?