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I was listening to the Bill Gurley episode of the Tim Ferriss podcast [0] and this post linked up with some interesting points Gurley made about the history of
by alexpotato 4y ago
I was listening to the Bill Gurley episode of the Tim Ferriss podcast [0] and this post linked up with some interesting points Gurley made about the history of OpenTable.
- Most of the restaurants at the time of OT's launch had no internet
- That meant that OT was helping restaurants order and install broadband
- As Gurley point out, this was historically a terrible idea (you are doing hardware installs as part of a software business for an industry with low margins)
- That being said, the network effects made it worth it to do, as PG always says, "things that don't scale in the early days"
- OT also focused on one city at a time
- There are some other interesting points about easy of adoption as the market penetration approached 90% in a city and the sales people went from active selling to essentially just taking orders.
0 - https://www.youtube.com/watch?v=HSVFZ2Qbv3I https://www.youtube.com/watch?v=HSVFZ2Qbv3I