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> plowing every dime made over costs into growth Key difference! A lot of these grow fast companies don’t even cover costs.
by Swizec 6y ago
> plowing every dime made over costs into growth
Key difference! A lot of these grow fast companies don’t even cover costs.
- N1H1L 6y agoExactly. The difference between Amazon and Uber is immense. Amazon's core business has been comfortably profitable for over a decade now. They invest those profits to diversify their business. However, Uber's core business has never been profitable.
- acheron9383 6y agoYeah, the key is the Amazon still _makes money_ on the services it provides, it just spends it all on some project. Contrast that with even Uber which has some very unhealthy indicators even in mature offerings. It is actually kind of amazing that Uber can't or doesn't make money even while taking a 20% cut of every ride sold. (I assume they must make money in some cities and not in others) That is a substantial margin for a middleman, especially one in a market with only one other real player.
- gbasin 6y agoUnit Economics.