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I mean, the strategy has created all of the biggest winners: Amazon, Google, Facebook, Spotify, eBay, PayPal, (maybe) Airbnb, etc. Each of them effectively mon
by thrav 7y ago
I mean, the strategy has created all of the biggest winners: Amazon, Google, Facebook, Spotify, eBay, PayPal, (maybe) Airbnb, etc.
Each of them effectively monopolized something for close to a decade.
It’s not a failed proposition; it just might be harder to pull off in some spheres than others, and harder as more money gets funneled into startups, and harder as the giants jump into your newly minted market, or acquire that new market.
- bpt3 7y agoIn the winners within your examples (I'm not sure why Spotify and Airbnb are on that list), the economics around their unit costs were fantastic, because they aren't selling physical goods or services. That's the main difference between those companies and WeWork/Uber: There's no way to drive margins low enough at those companies to justify valuing them like Google.