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Does anyone know if these delivery companies can survive in a higher interest rate environment? They were tried during the dotcom boom too and all of them went
by SkyMarshal 8y ago
Does anyone know if these delivery companies can survive in a higher interest rate environment? They were tried during the dotcom boom too and all of them went bust.
I've assumed the goal in trying them again was 1) cheap money again, 2) better logistics tech so maybe they can make better margins this time, and 3) sell to another established company that can use them as a loss leader, or IPO and expand into other businesses, before rates inevitably rise again.
Or do they think they have a viable business model even in a higher rate environment? They seem to be operating on slim margins, hence moves like this tip stealing stuff, or Instantcart's attempts to get customers to sign up for a subscription.