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To answer this question, we need to start with what a TAM analysis is for. Simply put, investors (and smart management teams) use TAM analyses in an attempt to identify gating factors on the growth of a startup over time. At Matrix, we're transparently looking to invest in companies that can one day become billion dollar businesses, and we see many pitches where the founder simply isn't ...
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· Ridesharing companies, for example, expanded the TAM beyond the traditional taxi market, because nontaxiusers started seeking rides once they realized they could use an app to get picked up anywhere and avoid messing with loose change. Uber and Lyft increased the TAM, which made any calculations they might have done about the total addressable taxiriding market obsolete.
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