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i would've appreciated a bit more breakdown on where all the spending was going. i mean, the user acquisition cost, will eventually go away for the most part o

i would've appreciated a bit more breakdown on where all the spending was going. i mean, the user acquisition cost, will eventually go away for the most part once they reach a certain size. After that it's all about operations. the question is how do the scalability of providing service fundamentals look like, long term cost vs revenue.

ghaff 8y ago
In the case of Uber/Lyft while I'm generally expensing it when I rarely use them and don't care about price much, I expect a lot of people who use them day-to-day would drop them in a heartbeat if they could use cheaper options. I'm not sure I understand why "rideshare" should be cheaper than cabs. I think it's mostly better than cabs which is why I use them. But that's maybe not the majority view.
vijaybhargava 8y ago
User acquisition cost doesn't fully go away, just becomes user engagement cost. Uber does a ton of promotions to keep customers tied in. Amazon Prime user enagement cost is all of the video streaming business and a bunch of other benefits just focused on delivering value to Prime.