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This is akin to the Airbnb model: tap into people's inherent faculties to determine trust on good packaging ("host guarantee" etc), good branding that makes the
by loceng 8y ago
This is akin to the Airbnb model: tap into people's inherent faculties to determine trust on good packaging ("host guarantee" etc), good branding that makes them look reputable, and good customer service (at least on the service) - but then not give a shit once you look a little bit below the surface, meanwhile building brand recognition and perceived value to exit early investors and founders via an IPO transferring risk to the general public.
Getting VC money and scaling/capturing market share for these businesses artificially seems to be the recipe, the bigger the network effects the better (for them).