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I've thought a lot of VC money was extremely suspicious. These gigantic unicorns run at losses for what, a decade? Where's the value in any of this? To call thi
by twomoretime 6y ago
I've thought a lot of VC money was extremely suspicious. These gigantic unicorns run at losses for what, a decade? Where's the value in any of this? To call this high risk is an understatement. Take Uber, for example. They're betting on self driving cars and that the populous (or politicians) allow them to operate. Mean while they've been a money hole for 11 years?
I guess Covid will be a good time to test how much of this is all hot air. I imagine those who provide or can pivot to vital services reliably will survive. These are the kinds of times where capitalism thrives, provided a majority of actors are operating in good faith.
- subsubzero 6y agoThe interesting thing about Uber is before Covid-19 I thought that the ride sharing arm of the company was the profitable path and the food delivery arm, Uber Eats was a lost cause. Now it seems like that theory has been thrown on its head as ride shares plummet and takeouts soar. But still I think profit margins on food delivery are not that high so I wonder if Uber will escape unscathed from layoffs/closures, VC funding will only last so long when a majority of your business dries up.
- aledalgrande 6y agoThey're not high, especially on small orders. It will let them get some revenue while people are on lockdown, but not massive profits I think.