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The story of Uber and Lyft illustrates this idea well. The original founders of Lyft had tried to invest in Uber, but Uber wanted an even higher valuation than what was being offered. Even after negotiation, they couldn’t reach a deal. The investment group was not happy and quickly decided that someone was eventually going to compete with Uber, and it might as well be them. That is the day Lyft was created. If you haven’t used either app, they are virtually identical. Lyft is much smaller than Uber but based on the stock price when I wrote this article, the market cap of the company is $20 billion. They may not have gotten an investment deal in Uber, but I’m guessing they aren’t too upset about the deal as a whole. –Shaun
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