3 ms·
If two companies that have been operating at a loss for N years simultaneously stop, is it price collusion? There are lots of factors here that could drive a d
by awinter-py 7y ago
If two companies that have been operating at a loss for N years simultaneously stop, is it price collusion?
There are lots of factors here that could drive a decision to raise prices: both went public this year = increased scrutiny, moviepass & wework fiascoes = decreased tolerance for bad business models, driverless experiments have failed.
But it also feels like there's a wink happening.
If the DOJ / courts takeaway is 'yes it's collusion and they're getting slapped with a company-killing fine', it has interesting implications for the ability of unicorns to operate at a loss for long periods.
Effectively banning negative unit economics for large companies would be a new chapter for the startup economy.