4 ms·
1. You don't understand the economies of scale. 2. Umbrellas are just the first step. First it was umbrellas, but next they'll do water bottles, etc. 3. Amaz
by tuna-piano 9y ago
1. You don't understand the economies of scale.
2. Umbrellas are just the first step. First it was umbrellas, but next they'll do water bottles, etc.
3. Amazon didn't make a profit for the first 10 years, they're just focusing on growth.
4. It's recurring revenue, so it's actually worth more than one-time sales.
5. They're not an umbrella company, they're a tech company.
- sdenton4 9y agoWe lose a dollar on every sale, but we'll make it up on quantity!
- chad_oliver 9y agoWas that meant to be parody? That's an honest question; I'm not sure whether you're serious or not.
- flukus 9y agoThe first one gives it away. It's a rephrasing of "we'll sell at a loss and make it up in volume".
- tuna-piano 9y agoI'm honestly not too sure myself. Like I mean they all seem like stupid reasons that are used to justify loss-making companies that have no chance at success. At the same time, for the right company, they are pretty logical reasons. That said, loss-making umbrella shop really seems like a better explanation than a "a growth focused tech company with massive economies of scale, recurring revenue, and huge potential in a wide variety of other markets."
- dankohn1 9y agoYes, it's an example of https://en.wikipedia.org/wiki/Poe%27s_law https://en.wikipedia.org/wiki/Poe%27s_law but it is, in fact, a parody. These are all justifications that companies tell their investors.
- astrodust 9y agoYou say parody, but all I hear is business plan that's going to get $2 million in funding if the right keywords are attached. What if you had...VR umbrellas?
- DrScump 9y agoStep 1: distribute umbrellas Step 2: ? Step 3: Profit!
- xz0r 9y agoSharing Waterbottles?! Yikes.
- honestoHeminway 9y agoWhat if there where a app on the market for sharing herpes. They stole my idea!
- Hydraulix989 9y agoIs this satire?
- horsecaptin 9y agoAh, of course. They're disrupting the sharing economy, starting with umbrellas.
- Havoc 9y ago>They're not an umbrella company, they're a tech company. Well given that their tech-y umbrellas seem to cost more than normal ones and aren't returning anyway maybe they should just use normal ones while they're working out the kinks in the business plan. Cost cutting measure so to speak. --Management consultant