4 ms·
> They should have stored the funds to weather through the storm right now instead of slashing jobs and hindering company's growth! Maybe they're doing both, s
by laweijfmvo 4y ago
> They should have stored the funds to weather through the storm right now instead of slashing jobs and hindering company's growth!
Maybe they're doing both, storing the funds and slashing jobs; what's left to "grow"? They followed the stereotypical model thus far
1. Operate at a massive loss on VC funds under the guise of user growth and acquisition
2. IPO at the peak
3. Figure out how to become profitable with a realistic business model or watch your valuation plummet
They're at Step 3 right now and they haven't figured out how to make a profit yet
- jeffbee 4y agoMost of their funding has been shadow funding in the form of the residual value of their drivers' cars. It's a gigantic invisible input, an aspect of the business shared with Uber and Lyft.