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Everyone is a loser except for the investors. If you really take it to the logical conclusion, the business model is Dumping [1]: capture the market, drive out
by TAForObvReasons 8y ago
Everyone is a loser except for the investors. If you really take it to the logical conclusion, the business model is Dumping [1]: capture the market, drive out everyone else, then jack up prices when you are the only show in town. And the winners in the endgame are the investors.
[1] https://en.wikipedia.org/wiki/Dumping_(pricing_policy) https://en.wikipedia.org/wiki/Dumping_(pricing_policy)
- skrebbel 8y agoI'm not doubting your point, but at the same time I struggle to name an example that did the "then jack up prices when you are the only show in town" step.
- TAForObvReasons 8y agoNo one, not even Amazon, reached the "only show in town" scale. Walmart's online presence for most popular items is competitive and many times offer lower prices. Uber, Airbnb, and other companies in this space are valued based on the assumption that they will in fact be able to reach that scale. And if they do, no doubt many of these unicorns will well exceed the trillion dollar market cap
- oarsinsync 8y agoWhile not reaching literal "only show in town", Wintel did exactly this when reaching dominance.