4 ms·
Because it's not about starting out with a sustainable business model. It's about taking a massive wad of cash and using it to block other entrants into your m
by gwbas1c 4y ago
Because it's not about starting out with a sustainable business model.
It's about taking a massive wad of cash and using it to block other entrants into your marketplace. Keep out competition as long as possible, and then once no one is looking, raise prices.
(Honestly, it seems kind of short-signed to me.)
- spaceman_2020 4y agoThat doesn’t seem to have worked out for Uber. Doubt it can work out for anyone else
- gwbas1c 4y agoI mostly agree, it seems mostly a dead-end mindset. (Then again, I've decided for my career that it's best to work for someone who runs a business, instead of running a business myself.) But, I was thinking a bit more about my statement last night; and I realized there are two directions to take: Build enough assets that, when the business fails, you can sell something off to whoever comes along with another wad of cash; or once you push everyone out and it's clear you don't have a sustainable business, rebrand so that everyone thinks you're a newcomer. I personally wouldn't do it, but I'm too much of a nice guy to run a business.
- blackoil 4y agoHas this model ever worked for anyone apart from businesses with very strong network effects?