Top 8 Startup vs. Big Tech Rivalries

Oct 25, 2022

Products from big companies like Google, Microsoft, and Apple have been so tightly woven into our lives that it’s hard to imagine anything or anyone taking their places. But we have seen, time and again, plucky startup businesses challenging these industry giants with innovative technology, revolutionary business models, and clever marketing.

Today, we’ll take a look at 8 memorable rivalries between tech startups and big corporations. We’ll examine how these rivalries came to be and analyze some of the pivotal moments that turned the tide in one company’s favor.

We’ll also tell you who we think the winners of these epic rivalries were and whether startups or big companies have fared better overall.

1. Diapers.com vs. Amazon

Backstory

Diapers.com built a huge business offering free delivery of diapers and other baby products.

It grew to generate over $100 million in revenue. While that's a drop in the bucket for Amazon, it was revenue to enough to get the giant's attention.

Amazon approached Diapers.com about acquisition several times and was turned down.

That's when Jeff B. went full scorched earth on this mom and pop shop.

Key Moment

Amazon Nukes Diapers.com in Price War

In a move that could be described as evil genius, Amazon started selling diapers at a loss to put price pressure on Diapers.com. Amazon sold a case of Pampers for $39 while Diapers.com had the same case for $45.

Was it a bold move? Yes.

Was it illegal? Nope.

The companies would also trade blows on Google Ads, bidding heavily on keywords in a dramatic race to the bottom.

Winner: Amazon

Amazon ended up acquiring Diapers.com's parent company, Quidsi, Inc., for $545 million.

The war over baby poop was over. Amazon had won.

But there was a happy ending for Diapers.com founder Marc Lore. He went on to found Jet.com which sold to Walmart for a whopping $3B.

2. GitLab vs. GitHub

Backstory

When it comes to developer tooling, GitLab and GitHub are top of the line. Both are web-based code management repositories with similar user personas.

GitHub started before GitLab and built a strong following in the open-source community. GitLab was founded in 2011 and took a more enterprise-facing approach.

Key Moment

Microsoft Acquires Github

In a move that stunned the world of open source software, Microsoft acquired GitHub for $7.5 billion in stock.

This armed the company with a much bigger bankroll and put the weight of the Microsoft brand behind them.

But was it actually good for GitHub? Many in the OSS community argued that this was a step in the wrong direction.

Winner: Microsoft (GitHub)

GitLab is now a publicly traded company (and is performing quite well) but it's up against the biggest of Big Cos: Microsoft.

And while some developers are strongly against working with MSFT, that hasn't stopped GitHub's growth. Today, the company remains a separate brand boasting immense user volume at a whopping 90 million developers.

3. Eventbrite vs. Ticketmaster

Backstory

Ticketmaster had what could be considered a monopoly on concert ticket sales.

That all changed when Eventbrite launched in 2006. The company would come to be known as the place to go for smaller venues and local shows, while Ticketmaster was associated with selling out stadiums and arenas.

Key Moment

Eventbrite Goes Public

Eventbrite IPO'd in 2018, raising $200 million and touting its competitive advantages in user experience, simple price structure, and focus on a broader set of creators.

Winner: Eventbrite

Ticketmaster takes a lot of heat for price gouging. That's why we've got to give this win to Eventbrite.

Yes, at the time of this writing, their share price is down 80% from its IPO high. But the company has proven they can go toe-to-toe with Ticketmaster.