Same-side network effects are direct network effects that occur on the same side of a multi-sided (2-sided or N-sided network). Same-side network effects refer to the change in value that occurs for users on the same side with the addition of users on that side.

For example, Uber actually has negative same-side network effects or a congestion effect. That's because at any given time, a greater number of riders means a higher price point or a higher wait time per ride. The same is true for drivers - more Uber drivers mean more competition for other drivers.

Same-side network effects can also be positive, however. This is the case for Windows users, who benefit from the addition of new Windows users because of file compatibility. Two Windows users can easily share files amongst themselves, and the number of people you can share files with grows with the number of people using the same platform.