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No, you keep acting like unit economics are evenly distributed, when they are not and that is the point. People show average unit economics and people assume t
by RC_ITR 4y ago
No, you keep acting like unit economics are evenly distributed, when they are not and that is the point.
People show average unit economics and people assume that the average applied to every transaction, when it is actually a distribution.
Expanding into new segments and markets almost always leads to temporary negative unit economics, but that's just what growth looks like.
The trick is to not take that too far and enter markets/segments with unit economics that will never be positive (like on-demand dog walking)
- seanhunter 4y agoLiterally no-one is assuming that average unit economics apply to every transaction.
- RC_ITR 4y agoRead up the thread my guy. >Gonna be very unpopular here, but the sooner gig companies like Uber and DoorDash collapse, the better. The business model of these so-called unicorns is effectively a Ponzi scheme where the end goal is for early investors to cash out with the IPO. However, unlike a Ponzi, these companies also rip off their contractors so most restaurants and drivers actually lose money by being involved with their "service". Straight-up middlemen who skim off the top behind a veneer of tech that can't even turn in a profit. Build a real business. If you can't be profitable without eliminating all the competition by first undercutting them, then jacking up prices on users, then you shouldn't exist [Edited the last sentence for punctuation]