Standard Oil

Rockefeller's edge wasn't kerosene demand, it was the railroad deal

Sam frames the app-validation lesson through Standard Oil: there was never any question that demand for kerosene existed. Rockefeller's secret sauce was a deal with the railroad to ship his kerosene profitably nationwide. The lesson: it's not about demand, it's about whether you can service demand profitably.

“It's kind of like when John Rockefeller started Standard Oil. Like, there was no question if there was a demand for kerosene. There was just a question, like, his secret sauce, but that he made a deal with the railroad so he could profitably get his kerosene all over the country. That's what this is. It's not about demand necessarily. It's about can you service demand profitably.”