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Those umbrellas look cheap, and definitely don't worth 19 yuan if bought from taobao.com, or even less if it's a bulk order [1]. It's possible that they're mak
by yogenpro 9y ago
Those umbrellas look cheap, and definitely don't worth 19 yuan if bought from taobao.com, or even less if it's a bulk order [1].
It's possible that they're making a profit even by selling the umbrellas at 19 yuan, not to mention users' personal information they've collected, which worths at least 5 yuan/entry.
[1] Lowest price of Umbrellas on alibaba.com (wholesale version of taobao.com) is $1/pc (6.8 yuan/pc): http://www.alibaba.com/trade/search?fsb=y&IndexArea=product_en&CatId=&SearchText=umbrella http://www.alibaba.com/trade/search?fsb=y&IndexArea=product_...
- tomhschmidt 9y agoThese umbrellas have a lock in the handle and a QR code that presumably gives you the code to the umbrella once scanned.
- jpatokal 9y agoWhich adds to the company's cost, but doesn't add any value to the umbrella's user.
- dna_polymerase 9y agoThe article clearly states how much an umbrella costs them. They are losing money.
- Laforet 9y agoIf you take their word (and accounting) at face value. In all likelihood they have fleeced both the investors and users.
- z2 9y agoAlthough, suppose they manage to average 3 rentals before someone decides they're not parting with it. That would mean they break even. Add in potential for advertising as another post mentioned, and maybe there's actually some viability to this crazy half-disposable-item for super expensive rent scheme!