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I'm sorry but comparing it to Uber is highly misrepresentative. Uber has serious Cost structure that can not be removed: the cost of the driver is essential t
by thorwasdfasdf 7y ago
I'm sorry but comparing it to Uber is highly misrepresentative. Uber has serious Cost structure that can not be removed: the cost of the driver is essential to the operation of it's busienss. Slack on the other hand is just a SaaS. Why are their costs so high? They said stock based compensation, but that doesn't begin to tell what it's for. Their user acquisition costs don't need to be really high, as far I know they started off with a great deal of virality and without too much paid acquisition. Between then and now, what happened? Naive question: Couldn't they simply cut most of their engineering/marketing and be wildly profitable?
If I were to take a wild guess, I'd say it was they tried to grow too quickly and overspent on marketing, getting a barely decent ROI on ad spend.