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Things are different than the webvan bubble: many of these companies have substantial revenues, selling into a market of 10 to 20 times as many internet users,
by michaelbuckbee 11y ago
Things are different than the webvan bubble: many of these companies have substantial revenues, selling into a market of 10 to 20 times as many internet users, much cheaper infrastructure, etc.
- GCA10 11y agoWebvan had $178.5 million of revenue in 2000, selling in only a few markets, and it had semi-coherent plans for growing its revenue quite a lot farther by penetrating existing markets more deeply and adding new ones. Trouble was, Webvan's way of doing business bled cash at a horrific rate. The bigger it got, the more money it lost. Investors got tired of throwing more cash into the company because the cash-bleed problem couldn't be fixed. I don't think Webvan is the last company ever to suffer from such problems -- or to be unable to save itself if/when investors go on strike.