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Or too much technology in the hands of people who have no idea how to run a business. Cut a deal to process payments for Starbucks and manage to lose nearly $10
by tacos 11y ago
Or too much technology in the hands of people who have no idea how to run a business. Cut a deal to process payments for Starbucks and manage to lose nearly $100,000 a day? Every day? For three years?
- detaro 11y agoDidn't Starbucks also invest in them as part of this deal, so they got money and then undercharged Starbucks by roughly the same amount, basically trading part of their company for visibility?
- tacos 11y agoStarbucks gave them $25 million. Square lost $71 million on the deal so far and it won't be done for another year. So Starbucks got discounted payments, plus equity in Square, plus a board seat. (Looking at it another way: Square got a loan at nearly a 100% annual interest rate plus loss of equity.) As for "visibility" they tried to promote the Square app to pay at Starbucks, nobody used it, and they killed that in 2014. "This is an epic partnership" - Jack Dorsey, 2012.