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These companies often assume that they can spend money to acquire customers but that those customers will stay loyal when the money hose turns off. If you have
by ponker 6y ago
These companies often assume that they can spend money to acquire customers but that those customers will stay loyal when the money hose turns off. If you have a fucking amazing product and spent the money to get people over the activation energy of trying it, that’s true. But a lot of these customers came to you for the bargain and flee as soon as the bargain dries up.
- krrrh 6y agoOr competition appears in your most profitable locales and skims off the most profitable end of the market, like Juno in Manhattan, offering slightly higher payouts to the top-rated Uber drivers, and a slightly better service to the top customers. And they don't have to try to make up the costs of overcoming legal hurdles and creating the market.